New Delhi, Sept. 30 -- Over the last few months, there have been many queries on SIFs (specialized investment funds) and GIFT City investments. Some of these enquiries have been led by genuine investor interest, but more so by the feeling that these new and exclusive products, available to people who can commit over Rs.10 lakhs, can make better returns compared with regular mutual funds. Investor inflows growing by 200% in SIFs and by 68% in GIFT City registered users in this financial year corroborate this.

The psychology of novelty and narratives built around a product often trigger investors to take these bets. Whether it is cryptocurrencies, unlisted stocks or stock baskets, the appeal of trying something new, being among the first t...