Specialised Investment Funds See ₹1,933 Crore Inflows in December; Passive Funds Hit Record AUM

Specialised Investment Fund (SIF) strategies attracted positive flows of ₹1,933 crore in December, more than doubling from the previous month. Hybrid investment strategies led the category with inflows of ₹1,571 crore, according to the monthly note by the Association of Mutual Funds in India (AMFI).

SIF assets surged 66.9% on-month to ₹4,892 crore in December from ₹2,932 crore in November. The note highlighted that SIFs have sustained momentum and investor interest in their initial months, with hybrid strategies emerging as a key growth driver.

New Strategies and Category Expansion

Two new investment strategies were launched during December, adding to the diversity of offerings in the SIF segment. One equity long-short fund mobilised ₹119 crore, while one hybrid long-short fund garnered ₹228 crore.

These launches indicate growing investor appetite for differentiated strategies that combine risk management with return potential. The expansion of SIF products reflects the industry’s efforts to cater to evolving investor preferences in alternative investment solutions.

Passive Funds Achieve Record AUM

Passive funds continued their strong performance, with assets under management rising 3.5% on-month to an all-time high of ₹14.57 lakh crore in December. The category recorded substantial net inflows of ₹26,723 crore, marking the 62nd consecutive month of positive flows.

Exchange-traded funds (ETFs) were the primary contributors, drawing ₹13,199 crore during the month. Gold ETFs posted their highest-ever monthly inflow at ₹11,647 crore, supported by a rally in gold prices and increased demand for safe-haven assets.

Surge In Gold and Silver ETFs

Gold ETFs benefited from strong price momentum and investor preference for stability amid global uncertainties. The record inflows into gold ETFs were accompanied by notable interest in silver ETFs, which attracted ₹3,962 crore in December.

Silver ETF inflows accounted for nearly 15% of the total passive fund flows, driven by robust industrial demand and a persistent global supply deficit. These trends underscore the growing role of commodity-based ETFs in portfolio diversification.

Equity Funds Maintain Positive Momentum

The equity fund category registered net inflows of ₹28,054 crore in December, marking the 58th consecutive month of positive flows. Investor sentiment was buoyed early in the month by GDP data showing 8.2% growth in Q1 FY26 and the RBI’s decision to cut the repo rate by 25 basis points.

However, the momentum moderated later due to profit booking and persistent foreign fund outflows. Within the category, flexi-cap funds led with ₹10,019 crore in inflows, followed by mid-cap funds at ₹4,176 crore, together accounting for 51% of total equity inflows.

Debt And Hybrid Fund Trends

Open-ended debt funds saw a 6.5% decline in AUM to ₹18.10 lakh crore in December from ₹19.36 lakh crore in November. The drop was driven by quarter-end redemptions as investors withdrew funds to meet advance tax obligations.

Ultra-short-duration funds (-11.4%), money market funds (-10.9%) and liquid funds (-8.3%) recorded the steepest declines. In contrast, hybrid funds posted a 1.2% rise in AUM to ₹11.00 lakh crore, led by multi-asset allocation funds, which grew 4.7% to ₹1.64 lakh crore.

Read More: SEBI Lays Down Uniform Compliance Reporting Framework for SIFs.

Conclusion

December witnessed strong inflows into specialised investment funds and record highs for passive fund assets, signalling robust investor interest across categories. Hybrid strategies dominated SIF flows, while ETFs, particularly gold and silver, drove passive fund growth.

Equity funds maintained positive momentum despite late-month volatility, and hybrid funds continued to expand. Debt funds faced seasonal outflows, reflecting typical quarter-end liquidity needs.

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