Specialised Investment Funds (SIFs), a newly introduced category in India’s mutual fund industry, are gradually gaining traction as more asset management companies introduce new products. Assets under management in the segment are now approaching ₹10,000 crore, with nearly half of the total inflows coming in the last two months.
The first SIF product was launched by Quant Mutual Fund in September 2025, marking the beginning of the new investment category in the market. Since then, at least eight additional fund houses have entered the space, expanding the range of offerings available to investors.
The number of SIF schemes has also increased steadily. While there were 11 schemes in February, the count has now risen to nearly 15, with three new products launched so far this month. Industry observers say this growth reflects increasing interest among asset managers to tap into the emerging segment.
However, mutual fund executives note that the adoption rate has been broadly in line with expectations. Unlike traditional mutual fund products, SIFs are considered more complex investment instruments, which means investor education and distribution channels play a crucial role in their growth.
Distribution remains one of the key challenges for the segment. Individual distributors—who account for a major share of mutual fund sales across India—are yet to qualify in large numbers to distribute SIF products. As a result, access to these funds remains somewhat limited for many retail investors.
Despite these constraints, industry participants believe the segment has strong potential to grow in the coming years as awareness increases and more distributors become eligible to offer SIF products.
With more asset managers expected to launch schemes and regulatory clarity gradually improving, SIFs could emerge as an important addition to India’s evolving mutual fund landscape.
1
+ There are no comments
Add yours