SEBI has introduced a new investment product called “Investment Strategies,” designed to bridge the gap between Mutual Funds and Portfolio Management Services (PMS). This product is aimed at addressing unregistered schemes and providing a regulated option for investors. The minimum investment for the product is ₹10 lakh per investor.
Key safeguards include:
- No leverage.
- Limited investment in unlisted or unrated instruments.
- Derivatives exposure capped at 25% of assets under management (AUM), except for hedging and rebalancing.
SEBI has also launched the ‘MF Lite’ framework with relaxed regulations for passive funds. This framework reduces compliance requirements for passive Mutual Fund schemes. Existing asset management companies (AMCs) can either hive off passive schemes or adopt the relaxed rules under MF Lite.
These updates aim to streamline investment options and ensure regulatory oversight.
