Specialised Investment Funds See Rapid Growth Amid Market Volatility and Fund Strategy Shifts

Specialised Investment Funds (SIFs), launched in mid-2025 to offer long-short strategies for wealthier investors, have seen rapid growth with assets under management rising from around Rs 2,000 crore in October to nearly Rs 4,900 crore by December and folios doubling to over 20,700. Hybrid strategies led inflows, reflecting sustained investor interest amid market volatility. Meanwhile, mutual funds continue to navigate liquidity challenges in small caps, with some funds adjusting portfolios cautiously. Value investing remains prominent, favored by sophisticated investors for long-term gains despite potential patience tests.