Filling a gap

New asset class for mutual funds will help HNIs

The Securities and Exchange Board of India (Sebi) has proposed an asset class for mutual-fund (MF) investors. A consultation paper in this regard was published on July 16 and public comments will be accepted on the proposed scheme until August 6. This new asset class would allow asset management companies (AMCs) to launch funds packaging high-risk, high-return trading strategies to investors with the risk appetite and financial capacity. The proposal places these products halfway between portfolio management schemes (PMS) and “vanilla” mutual funds (MFs). The minimum investment value is Rs 10 lakh, which is less than the