Market regulator Sebi has approved the introduction of a 'new asset class' to reduce the difference between mutual funds and portfolio management services (PMS). The move allows high-net-worth investors to invest in riskier regulated products. The minimum investment amount in the new asset class will be Rs 10 lakh. The offerings under the new product will be referred to as 'investment strategies' to maintain a clear distinction from the schemes offered under traditional mutual funds.

The new product aims to add depth and variety to the country's investments through a new asset class. SEBI had issued a consultation paper on introducing a 'new asset class' in July, inviting public comments by August 6, 2024. What is the purpose The move is aimed at creating a new product that sits between mutual funds and portfolio management services (PMS), and which meets the needs of investors with greater risk-taking capabilities and larger size. This was the first board meeting of the regulator after US company Hindenburg Research and India's Congress Party leveled conflict of interest allegations against Speaker Madhavi Puri Buch.