The Securities and Exchange Board of India (Sebi) has set the minimum amount for investing in Specialized Investment Funds (SIF), a newly-introduced asset class, at ₹10 lakh.
The new asset class was introduced for investors, who want to put between ₹10 lakh and ₹50 lakh in differentiated investment strategies such as long-short equity and inverse exchange traded funds, among others.
The minimum investment threshold in portfolio management service (PMS) products is ₹50 lakh and ₹1 crore for alternative investment funds (AIFs).
Specialized Investment Funds allow mutual funds to launch advanced investment strategies as open-ended, closed-ended and Interval structure with subscription and redemption frequency appropriately disclosed in the offer document. The requirement of minimum investment amount will not apply to an accredited investor.
In its notification, Sebi said the fees and expenses for the investment strategies launched under the SIF shall be similar to the current mutual fund structure.
The regulator, in its proposal, said the new asset class would be able to invest in derivatives or derivative strategies as a way of taking exposure in the market.
