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Small Cities Fueling Investment Fund Boom
2 May
Summary
- Specialised Investment Fund sees 50% participation from smaller cities.
- New fund category aims for ₹1 lakh crore AUM in three years.
- Fund AUM doubled to ₹10,620 crore in March from ₹4,892 crore in December.
The Specialised Investment Fund (SIF), recently launched by market regulator SEBI for sophisticated investors, is experiencing remarkable growth. A significant 50% of its participation is coming from smaller cities, demonstrating that investment aspirations are not limited by location.
As of March 2026, the SIF's asset under management (AUM) more than doubled to ₹10,620 crore, a substantial increase from ₹4,892 crore in December 2025. The number of SIF offerings also doubled quarter-on-quarter to 14 by the end of March.
Fund houses are actively pursuing a first-mover advantage, with a minimum investment of ₹10 lakh set at the fund house level. This category is projected to achieve an AUM of ₹1 lakh crore within the next three years.
Distribution remains a key challenge, with only 6,000 distributors currently qualified. The industry is advocating for changes in certification norms, including the removal of negative marking and currency derivatives from the examination syllabus.
