SIF Performance Data Shows Wide Gap Across Long-Short Strategies in 2026

Key Takeaways

• Hybrid long-short SIFs returned 9.6% year-to-date as of October 15, while equity long-short SIFs declined 1.8%, according to an Ionic Wealth study. 
• Equity ex-top-100 long-short SIFs returned 13.1% over the same period, compared with 11.4% for small-cap mutual funds and 1.9% for mid-cap funds. 
• Separate September data showed wide dispersion within the ex-top-100 SIF category, with quant's qsif returning 29.23% over six months while newer schemes had shorter and more mixed records. 

Fresh performance data on Specialised Investment Funds, or SIFs, is beginning to show how differently individual long-short strategies are behaving as the category builds a longer track record. 

An Ionic Wealth study covering schemes with sufficient history from the start of 2026 found that hybrid long-short SIFs had gained 9.6% year-to-date as of October 15. Equity long-short SIFs were down 1.8%, while equity ex-top-100 long-short SIFs had risen 13.1%. 

The numbers also showed clear differences between SIFs and conventional mutual fund categories. Large-cap mutual funds were down 6.9% over the same period, while flexi-cap funds had declined 1.6%. Mid-cap funds returned 1.9% and small-cap funds gained 11.4%. 

Hybrid categories presented another contrast. Balanced advantage funds declined 1.5% year-to-date, while multi-asset allocation funds posted a 0.2% gain. Hybrid long-short SIFs, at 9.6%, were ahead of both categories in the study. 

The study also assessed how equity long-short strategies behaved during falling and recovering markets. Between January 2 and March 30, when the Nifty 50 fell 15.2%, equity long-short SIFs recorded a downside capture ratio of 59%. The corresponding ratios for large-cap and flexi-cap mutual funds were 92% and 90%. 

During the recovery from March 30 to August 3, equity long-short SIFs recorded an upside capture ratio of 117%, below the 133% recorded by large-cap funds and 170% for flexi-cap funds. 

A separate Moneycontrol analysis based on SIF360 data as of September 30 highlighted the variation even within one SIF strategy. All seven equity ex-top-100 long-short schemes lost ground during the final week of September, with weekly declines ranging from 1.09% to 3.73%. 

Quant Mutual Fund's qsif, the oldest scheme in that group, had nevertheless returned 29.23% over six months and 12.87% since inception. 360 ONE's Dyna recorded a 10.52% three-month return, while some of the newest schemes remained below their initial NAV of ₹10. 

The datasets cover different periods and should therefore not be compared as a single performance table. They do, however, underline the widening dispersion within the relatively young SIF market. Most schemes still have short histories, making longer-term comparisons limited at this stage.