MUMBAI, April 16 -- A new class of high-ticket investment products, positioned for higher-risk investors, is drawing participation from cities beyond the top 30, early data shows. SIFs, introduced by the Securities and Exchange Board of India (SEBI) in February 2025, were pitched as products for investors with a higher risk appetite than mutual funds, with a minimum ticket size of Rs.10 lakh. About 53% of investors in Specialised Investment Funds (SIF) are from beyond the top 30 cities, or B30 locations, according to an analysis by Computer Age Management Services (CAMS). These regions account for roughly 33% of total SIF assets. By contrast, B30 locations contribute 18.9% of overall mutual fund assets, as per the Association of Mutual Funds of India (AMFI). The data, which covers CAMS-serviced asset management companies representing nearly 60% of SIF assets, refers to individual investors. SIFs managed Rs.10,620 crore in assets across 11 schemes with 28,754 investors as of March-end. By comparison, India's mutual fund industry had Rs.73.73 trillion in assets under management (AUM). In industry parlance, B30 locations refer to cities outside mutual fund hubs such as Mumbai, Kolkata, Ahmedabad, and Delhi. Much of the early traction appears to be tied to how some distributors are framing hybrid long-short strategies as relatively conservative options offering slightly higher returns than fixed-coupon products. Hybrid funds, in particular, are being pitched as conservative products with different classes of investors based on their risk appetite, making them well-suited for investors in tier-3 cities and beyond, said D.P. Singh, joint chief executive at SBI Mutual Fund. "In our case, we are conveying hybrid funds as conservative products rather than aggressive ones. These are aimed at investors who can stay invested for 2-3 years and expect fixed-coupon type returns," Singh added. SBI Mutual Fund's SIF scheme managed Rs.3,314 crore in assets as of February-end. This positioning is reflected in the product mix. Hybrid strategies account for about 75% of total SIF assets under management as of February-end, helping explain the stronger uptake of relatively conservative structures in smaller cities. An assessment of risk profiles shows five of the six hybrid long-short funds fall in the low-risk category. The exception is the QSIF hybrid long-short fund managed by Quant Mutual Fund, which is categorized as higher risk. Initially perceived as risky, SIFs, especially its long-short hybrid variant, have emerged as a relatively conservative option that cushions volatility while delivering 2-3% returns even in falling markets, said Syed Hassan, chief programme officer at CAMS. Hybrid SIFs have been able to limit the downside in falling markets. Quant QSIF hybrid long-short fund returned 2.39% in the last three months, while SBI's Magnum hybrid long-short fund fell 0.93% and Edelweiss Altiva hybrid long-short fund gained 1.2%, according to data from Value Research. In comparison, the Nifty 50 declined 5.76% over the same period. The tilt towards conservative positioning is also visible in investor demographics. Nearly 30% of SIF investors are in the above-60 age bracket, according to CAMS. At the same time, the breadth of participation may be influenced as much by distribution reach as by underlying demand....