New asset class could bring in flexibility with higher ticket size

Revolutionary new asset class proposed by India's market regulator, offering high-ticket investments between mutual funds and PMS/AIFs..

India's capital market regulator has proposed a new asset class, different from mutual funds, Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs)..

To meet the growing demand for financial products in India, the Securities and Exchange Board of India (Sebi) has proposed to introduce differentiated investment solutions with higher average ticket size than mutual funds but lower than PMS and AIFs...

Sebi recognised that as the Indian financial markets grew in size, there was a growing appetite for investment products with greater flexibility, higher risk-taking capability and a higher ticket size, which the mutual fund industry, by design, could not provide..

Funds that do not fulfill the criteria can launch this product after appointing a chief investment officer with experience in fund management of at least 10 years and managing AUM of not less than 5,000 crore, and an additional fund manager with experience in fund management of at least 7 years and managing AUM of not less than 3,000 crore...

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