Sebi Sees Encouraging Response to SIFs; Asset Base Grows to Rs 13,500-Cr by May-End

New Delhi: The newly introduced Specialised Investment Funds (SIFs) have witnessed rapid adoption, with the category crossing Rs 13,814 crore in assets under management (AUM) since the regulatory framework was introduced in February, a top Sebi official said on Friday.

Sebi introduced SIFs to bridge the gap between regular mutual funds and high-ticket Portfolio Management Services (PMS). SIFs target sophisticated investors through flexible hedging, derivatives, and long-short strategy.

Speaking at Assocham’s 17th Mutual Fund Summit, Sebi Whole-Time Member Amarjeet Singh said, “The regulatory framework for Specialised Investment Fund (SIF) was introduced last year. The early response has been encouraging.” Giving details, he said, “As on May 31 2026, SIFs have already garnered net assets under management of over Rs 13,500 crore, spread across more than 56,000 investor folios”.

SIFs requires a minimum investment of Rs 10 lakh and allow fund managers to use advanced strategies such as derivatives and long-short equity.

According to Singh, across 21 investment strategies launched, the maximum funds have been mobilized under the Hybrid Long Short investment strategy.

He added that “this indicates a growing investor appetite for differentiated investment solutions within a well-regulated ecosystem.” To strengthen the distribution framework, Singh said Sebi and the National Institute of Securities Markets (NISM) are working on a common certification for distributors.

“Sebi and NISM are working together to bring out a Combined Mutual Fund–SIF Distributor Certification Examination, which will be a single certification for distributors intending to distribute both mutual fund and SIF products,” he said.

The initiative, he said, “aims to strengthen professional competency and ensure that the entities involved in distribution of Mutual Funds and SIFs possess the requisite information about these products”.

While discussing new investment products, Singh also cautioned investors against chasing market fads.

“Investment decisions need to be guided by financial goals, risk appetite and investment horizon — not by short-term trends that are currently in fashion,” he said.

Referring to the influence of social media, he said, “In an environment where social media can amplify eye-catching returns and drive FOMO (fear of missing out), goal-based products such as life cycle funds can help investors remain focused on suitable asset allocation and long-term financial objectives.” Singh said that the MF industry is an important force in the country’s financial markets because it enables households to participate in long-term wealth creation transparently and cost-efficiently.

Additionally, it provides stable and domestic capital for growth and also plays a significant stewardship role as an increasingly important shareholder in listed companies.

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