25 of 34 Specialised Investment Fund Strategies Record Negative Returns in October 2026

Key Takeaways

• A performance analysis by SIFPrime found that 25 of 34 comparable Specialised Investment Fund strategies recorded negative returns during October 2026.
• The study compared scheme net asset values at the end of September and October to assess one-month performance.
• The findings illustrate differences in short-term outcomes across specialised investment strategies, including equity-oriented long-short approaches.

Most Comparable SIF Strategies Report Negative October Returns

A majority of the Specialised Investment Fund (SIF) strategies included in a recent performance study recorded negative returns during October 2026.

According to data compiled by SIFPrime and reported on 12 November, 25 out of 34 comparable SIF strategies ended October with net asset values below their levels at the end of September.

The findings provide an early snapshot of monthly performance across India's specialised investment fund segment.

The study covered strategies for which comparable month-end NAV data was available.

Consequently, the result should not be interpreted as a performance assessment of every SIF product operating in the market.

Equity-Oriented Strategies Face Pressure

The reported analysis found particularly weak results among strategies classified within the Equity Ex-Top 100 segment.

Such strategies generally involve equity exposure beyond the largest companies by market capitalisation, subject to their investment mandates.

Their performance can be influenced by movements in the underlying equity universe, portfolio concentration and the use of permitted derivative strategies.

However, a negative monthly return does not, by itself, establish which individual factor was responsible.

SIF portfolios can employ different combinations of long positions, short exposure, hedging arrangements and other instruments.

The impact of market movements therefore varies between strategies.

Understanding the October Performance Data

The study compared net asset values recorded at two month-end reporting points.

A negative movement between those dates indicates that the strategy's NAV declined over the measured period.

It is distinct from a one-year return, a rolling-return series or a systematic investment plan's annualised XIRR.

Monthly NAV returns also do not necessarily represent the realised experience of every investor, whose returns depend on their own investment and redemption dates.

Nine of the 34 comparable strategies did not fall within the negative-return group identified by the study.

However, the overall figures do not establish that these nine strategies delivered a particular level of positive performance.

SIFs Operate Under a Distinct Regulatory Framework

Specialised Investment Funds are regulated investment products that permit certain strategies beyond the scope of conventional mutual fund schemes.

Depending on the strategy, the framework can allow controlled short exposure and other permitted derivatives-based investment approaches.

The category generally has a higher minimum investment requirement than ordinary retail mutual funds.

These features create a wider range of potential portfolio structures, but they also introduce strategy-specific risks.

An SIF's stated objective, derivative exposure, asset allocation and liquidity terms can differ materially from another SIF.

October Results Provide an Early Performance Snapshot

The October study provides evidence of the short-term variability recorded among the comparable strategies.

It does not establish their long-term track records or demonstrate how their returns will develop in subsequent periods.

The findings are relevant to the evolution of India's SIF industry because they provide measurable scheme-level data for a category that has expanded the range of regulated investment strategies available in the market.

Comparisons over longer periods will require consistent performance histories and comparable investment mandates.