Hybrid Long–Short Funds Hold 84% of India’s Specialised Investment Fund AUM: AMFI–ValueMetrics

Hybrid long–short mutual funds have become the largest segment in India’s Specialised Investment Fund (SIF) category. According to ValueMetrics–AMFI data as of 31 January 2026, these funds managed about ₹5,485 crore out of the total ₹6,564 crore SIF assets, giving them an 84% share.

In comparison, equity-oriented long–short strategies accounted for only ₹1,079 crore, or 16% of total SIF assets.

Strong Inflows into Hybrid Strategies

Investor money has largely flowed into hybrid long–short funds. Between October 2024 and January 2026, total SIF inflows reached around ₹6,569 crore.

• Hybrid long–short funds: about ₹5,456 crore (around 83% of inflows)
• Equity long–short funds: about ₹1,112 crore

In January 2026 alone, hybrid SIFs attracted ₹1,637 crore, while one equity long–short category recorded net outflows.

Why Investors Prefer Hybrid Long–Short Funds

These funds combine equity investments with hedging tools such as futures and options, helping reduce losses during market volatility while still participating in potential gains.

Equity long–short funds, on the other hand, depend more on stock selection and relative performance bets, making them more sensitive to sudden market movements.

Still a Small Part of the Mutual Fund Industry

Even though hybrid strategies dominate the SIF segment, the overall SIF market remains very small compared to India’s mutual fund industry.
Total mutual fund AUM stood near ₹82 trillion in January 2026, meaning specialised funds represent only a tiny share of overall investments.

Read More: Equity Mutual Fund Inflows Drop 14% MoM to ₹24,028 Crore in January 2026.

What the Trend Indicates

The shift toward hybrid long–short strategies shows that investors in specialised products are focusing more on risk control and balanced returns rather than aggressive equity exposure.
This pattern is similar to inflows seen in popular hybrid categories like balanced advantage and multi-asset funds.

Conclusion

Hybrid long–short funds now dominate India’s specialised investment fund space, supported by strong inflows and investor demand for risk-managed strategies. Although SIFs remain small within the broader mutual fund market, hybrid approaches are likely to stay the preferred choice unless market conditions change significantly.

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