How SEBI New Investment Product Will Work And Know Minimum Investment Limit In New Asset Class

New Investment SEBI Update: Investors will soon have another investment option apart from Mutual Funds and Portfolio Management Services. Stock market regulator SEBI has approved the launch of new investment product or new asset class for investment which will bridge the gap between mutual funds and portfolio management services. Will work to fill the. The new investment product will be for investors who are willing to take less risk for higher returns.

Opportunity to invest in a new asset class

SEBI in its board meeting has approved the launch of new investment products in the mutual fund framework under the SEBI (Mutual Funds) Regulations 1996. The new investment product will be a product between mutual fund and PMS. The new investment product will provide investors with a higher risk investment option that will be better regulated and this new asset class will be managed by the best market professionals.

Investment limit of Rs 10 lakh

Investors in mutual funds can start with a minimum investment of Rs 500. Whereas the minimum limit of investment in Portfolio Management Services (PMS) is Rs 50 lakh. In a new investment product or asset class, investors will have to invest at least Rs 10 lakh in an asset management company.

Investors’ interests will be protected

New investments have been made to protect the interests of investors in the product. Like no leverage will be allowed in this. Apart from the permission given to mutual funds and exposure to derivatives up to 25 per cent of assets under management for hedging and rebalancing, investment in unlisted companies and unrated instruments will not be allowed in the new asset class.

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