Specialised Investment Funds (SIFs), the new investment vehicle introduced by the Securities and Exchange Board of India (Sebi) to bridge the gap between traditional mutual funds and Portfolio Management Services (PMS), have witnessed a strong start, with assets under management (AUM) crossing ₹13,500 crore within months of the framework’s rollout.

Addressing Assocham’s 17th Mutual Fund Summit on Friday, Sebi whole-time member Amarjeet Singh said the category’s fast growth, garnering over 56,000 investor folios as of May 31, 2026, reflects encouraging early adoption. SIFs require a minimum investment of ₹10 lakh and permit fund managers to deploy advanced investment strategies, including derivatives, hedging and long-short positions, aimed at sophisticated investors.

Among the 21 investment strategies launched so far, the Hybrid Long-Short strategy has attracted the largest share of investor money, indicating growing appetite for differentiated products within a regulated investment framework.

To strengthen the distribution ecosystem, Sebi and the National Institute of Securities Markets are jointly developing a combined mutual fund-SIF distributor certification examination. The single certification will equip distributors with the knowledge to market both mutual fund and SIF products.

Singh also cautioned investors against chasing fashionable investment themes or social media-driven returns. Investment decisions, he said, should be guided by financial goals, risk appetite and investment horizon rather than fear of missing out. Goal-based life-cycle funds can help investors maintain appropriate asset allocation, he added.