New Sebi norms: SIFs to target wealthy investors with high-risk appetite

The regulator has laid down a few investing rules and regulations for this strategy. The new product line may have offers across open-ended, close-ended, and interval investment strategies

The Securities and Exchange Board of India (Sebi) has notified the so-called “specialised investment funds”, or SIF, and clarified the rules and regulations of this new asset class, which it conceptualised a few months ago. The SIF has been designed to offer an investment option midway between a portfolio management scheme (PMS) and “vanilla” mutual funds (MFs). Asset-management companies (AMCs) can use these instruments to offer high-risk, high-return trading strategies to sophisticated investors who possess the requisite risk appetite and financial capacity. The minimum investment value is Rs 10 lakh, which is less than the minimum Rs 50 lakh threshold