Hybrid Long-Short SIFs Average 0.71% Return in September; Five of 11 Schemes Post Gains

Key Takeaways

• Hybrid long-short Specialised Investment Funds recorded an average return of 0.71% during September 2026, according to a category performance study.
• Five of the 11 schemes generated positive monthly returns, while six ended September with losses.
• The category's median return was negative 0.10%, compared with an average of positive 0.71%, indicating that stronger-performing schemes influenced the overall average.

September Returns Show Wide Differences Across Hybrid SIFs

Hybrid long-short funds operating under India's Specialised Investment Fund (SIF) framework recorded an average return of 0.71% in September 2026, despite weakness across major equity indices.

A performance study reported by Moneycontrol on 9 October found that only five of the 11 hybrid long-short schemes delivered positive returns during the month.

The difference between the category average and individual scheme returns was particularly wide.

The strongest-performing scheme, qSIF Hybrid from Quant, recorded a 16.91% monthly gain. At the other end, ICICI Prudential's iSIF Hybrid declined 3.32%.

The category median stood at negative 0.10%, suggesting that the positive average was influenced by the unusually high return recorded by the leading scheme.

September 2026 Performance Across Hybrid Long-Short SIFs

Equity Market Declines Provide Context

The study reported that the Nifty 50 declined 6.06% during September. The Nifty 500 fell 5.88%, while the Nifty Midcap 150 declined 7.09%.

Against this market background, the hybrid long-short category's positive average monthly return contrasted with the performance of the broad equity indices.

Other SIF categories recorded weaker average outcomes. Equity Ex-Top 100 strategies declined approximately 2.5%, while equity long-short strategies fell around 4%, according to the reported dataset.

These comparisons describe historical results across different investment strategies and should not be interpreted as equivalent risk-adjusted performance.

How Hybrid Long-Short Strategies Differ

Hybrid long-short SIFs can combine investments in equities, debt securities and derivatives within the applicable regulatory framework.

Their portfolio structures can differ considerably.

Some strategies may maintain larger debt allocations, while others can take more active positions in equities or use derivatives to establish short exposure.

As a result, funds operating within the same regulatory category may experience different returns during identical market conditions.

September's figures illustrate this variation. The difference between the highest and lowest reported monthly returns exceeded 20 percentage points.

What the September Data Establishes

The category's positive average does not mean that most schemes delivered gains.

Six of the 11 funds recorded negative monthly returns, and the median return was slightly below zero.

The figures also cover a single month. They do not establish how these strategies will perform across longer periods or different market conditions.

The September study provides an early comparison of return dispersion within India's developing SIF market. Past performance does not indicate future returns.