Should You Invest In SIFS?

Savvy investors are looking for smarter investment strategies, better asset allocation, and products that can balance portfolio growth with stability. Do specialised investment funds (SIFS) fit the bill?

- Kundan Kishore

As financial awareness deepens across India, investor participation has surged. The past five years, in particular, have marked a turning point with conversations about money moving from living rooms to mobile screens, and equity and innovative investing shifting from being an elite activity to a mainstream habit.

Numbers point to the soaring popularity of financial products among investors. The number of demat accounts in India has skyrocketed, rising from about 4.1 crore in March 2020 to over 21 crore by October 2025. At the same time, mutual fund assets under management (AUM) have surged to ₹79.9 lakh crore.

Along with the numbers, there’s a mindset shift too. Investors are increasingly moving away from the safety net of guaranteed-return products and adopting market-linked financial products that can help them outpace inflation and build long-term wealth.

Investors today don’t just think of chasing returns but look for smarter strategies, better asset allocation, and innovative investment solutions that can align with their financial goals and risk appetite, while balancing growth and stability. This has opened the doors for several newer investment strategies, from passive and factor-based funds to the latest product on the block: specialised investment funds (SIFs).

Capital market regulator Securities and Exchange Board of India (Sebi) came up with the regulatory framework for SIFs in February 2025. To ensure investors do not confuse the product with mutual funds (MFs), asset management companies (AMCs) have been asked to use a different brand name and logo for SIFs.

As of now, around 15 AMCs have obtained approval for a new brand name and four have already launched their SIF products. These include SBI Mutual Fund (Magnum SIF), Edelweiss Mutual Fund (Altiva SIF), Quant Mutual Fund (qSIF) and ITI Mutual Fund (Divinity SIF).

The Need For SIFs