SIFs off to a strong start as every eligible fund beats its benchmark; JioBlackRock joins the race

Less than a year after the Securities and Exchange Board of India (SEBI) introduced Specialised Investment Funds (SIFs), the new category has caught investors' attention for an unusual reason — all the funds with a measurable performance history have outperformed their benchmarks.

While the track record remains short, the early numbers have been impressive. The seven SIF schemes that have completed around six months have all generated returns ahead of their respective benchmarks. The outperformance ranges from roughly 3 percentage points to nearly 10 percentage points, making SIFs one of the best-performing new investment categories since their launch.

Amid this growing interest, JioBlackRock Asset Management has launched its maiden SIF offering — the JioBlackRock Prism Hybrid Long-Short Fund. The new fund, whose NFO is open from June 29 to July 13, seeks long-term capital appreciation along with income by investing across equities, debt, derivatives and alternative investment opportunities. The minimum investment amount is ₹10 lakh, in line with SEBI's eligibility criteria for SIFs.

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A new category between mutual funds and PMS

SEBI introduced Specialized Investment Funds to bridge the gap between traditional mutual funds and Portfolio Management Services (PMS). While mutual funds largely follow long-only strategies, SIFs have greater flexibility to deploy sophisticated investment techniques such as hedging, derivatives, covered calls, arbitrage and limited short positions within a regulated mutual fund structure.

The higher entry threshold of ₹10 lakh positions SIFs for affluent investors looking for more advanced portfolio strategies without moving to PMS or Alternative Investment Funds (AIFs).

Feature	Specialised Investment Funds (SIFs)
Regulator	Securities and Exchange Board of India (SEBI)
Minimum investment	₹10 lakh
Investment approach	Long-short strategies, derivatives, hedging, arbitrage, fixed income and alternative opportunities
Who is it for?	Affluent investors seeking sophisticated strategies within a mutual fund structure
Can take short positions?	Yes, through derivatives (subject to SEBI norms)
Can hedge market risk?	Yes
Typical investments	Equities, debt, derivatives, REITs, InvITs, merger arbitrage, covered calls, special situations
Performance so far	All 7 SIFs with around six months' track record have outperformed their benchmarks
Reported outperformance	Approximately 3 to 10 percentage points above benchmark
Latest entrant	JioBlackRock Prism Hybrid Long-Short Fund (NFO: June 29–July 13, 2026)

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What's driving the outperformance?

The early success of SIFs has less to do with extraordinary stock picking and more with portfolio construction.

Many hybrid SIFs generate a steady income stream through a combination of fixed-income securities, arbitrage opportunities and covered call strategies. Covered calls allow fund managers to earn option premiums by selling call options on stocks they already own, creating an additional source of income during range-bound markets.

Unlike conventional mutual funds, SIFs can also hedge a significant portion of their equity exposure using derivatives. This flexibility helped them protect capital during phases when large-cap stocks corrected, limiting drawdowns compared with benchmark indices.

Another contributor has been asset allocation. Several SIFs increased exposure to mid-cap stocks during a period when mid-caps outperformed large-cap benchmarks, further boosting returns.

Performance of SIFs with over six months' track record (As of June 23, 2026)        

SIF Scheme	Fund House	Track Record	Fund Return	Benchmark Return	Outperformed By
Altiva Hybrid	Edelweiss	8.1 months	8.0%	-2.0%	10.0 percentage points
QSIF Equity Ex-Top 100	Quant	7.4 months	5.5%	-3.3%	8.8 percentage points
QSIF Equity	Quant	8.6 months	6.1%	-0.5%	6.7 percentage points
QSIF Hybrid	Quant	8.3 months	5.5%	-1.1%	6.5 percentage points
Magnum Hybrid	SBI	8.1 months	4.5%	-2.0%	6.5 percentage points
Titanium Hybrid	Tata	6.4 months	2.0%	-2.3%	4.3 percentage points
Diviniti Equity	ITI	6.8 months	-5.5%	-8.5%	3.0 percentage points

Source: Value Research, AMFI (as of June 23, 2026)

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Early numbers, but limited history

Among the standout performers, Edelweiss Altiva Hybrid reportedly outperformed its benchmark by around 10 percentage points, while SBI Magnum and several Quant SIFs generated excess returns of roughly 6.5 to 9 percentage points.

However, market participants caution against drawing long-term conclusions from less than a year's performance. Different market conditions could produce different outcomes. Strategies such as covered calls, which have supported returns in relatively volatile markets, may cap gains during strong bull runs. Likewise, hedging can reduce participation when markets rally sharply.

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JioBlackRock's strategy

JioBlackRock's Prism Hybrid Long-Short Fund follows a diversified approach by combining long equity positions with limited short exposure through derivatives, alongside investments in debt instruments and alternative opportunities such as merger arbitrage, REITs, InvITs, collars and special situations.

According to the asset manager, the strategy is designed to deliver better risk-adjusted returns while keeping portfolio volatility and drawdowns lower than traditional equity-oriented products. 

JioBlackRock Prism Hybrid Long-Short Fund at a glance

Particulars	Details
Scheme	JioBlackRock Prism Hybrid Long-Short Fund
Category	Specialized Investment Fund (SIF)
Strategy	Hybrid Long-Short
Benchmark	NIFTY 50 Hybrid Composite Debt 50:50 Index
NFO period	June 29 – July 13, 2026
Minimum investment	₹10 lakh
Investment options	Lump sum, SIP, STP, SWP
Asset classes	Equity, debt, derivatives, REITs, InvITs, merger arbitrage, special situations

With more fund houses entering the segment and early performance generating interest, SIFs are emerging as one of the most closely watched developments in India's investment landscape. Whether they can sustain their initial outperformance across multiple market cycles will determine if the category becomes a lasting addition to investors' portfolios rather than simply an impressive debut.