If two SIFs are in the same category, why can their returns be completely different?

Published 19 September 2026

Manpreet from Chandigarh

I saw one SIF deliver more than 15% while another lost more than 5% over roughly the same period. If both are called SIFs, why is there such a large difference?

Sachin Kabra Co-founder Foliyo (SEBI RIA No: INA000023454), ex-Director HDFC Private Wealth, Business Head Motilal Oswal AMC LinkedIn

Because the SIF label does not mean that the funds are doing the same job.

One SIF may primarily invest outside India’s top 100 companies. Another may be a diversified equity long-short fund.

A third may largely invest in debt and arbitrage, while another may dynamically move between debt, equity, commodities and REITs.

Even within hybrid long-short SIFs, one strategy may behave more like debt plus arbitrage, another may focus on income and special situations, while another may have much higher equity exposure.

Comparing recent returns across SIFs without first understanding their underlying strategy has very little meaning.

“These two funds may both carry the SIF label, but they are not doing the same job.”

“When it comes to SIFs, the name of the category matters far less than what is happening underneath it.”

This is not personalized investment advice. Your portfolio, goals, liquidity needs and risk tolerance may be different, so assess your own situation and discuss it with your financial advisor.

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