Capital market regulator SEBI on Monday approved a proposal to introduce a new asset class for investors with high risk profile. SEBI has taken this big and important step to bridge the gap between mutual funds and portfolio management services in terms of flexibility in asset construction. 

Investors will be able to invest at least Rs 10 lakh

A minimum investment of Rs 10 lakh per investor can be made across all investment strategies of the new product in a particular asset management company (AMC). In a statement after the board meeting, SEBI said, "The new product aims to reduce the proliferation of unregistered and unauthorized investment schemes or entities, which often promise unrealistically high returns and take advantage of investors' expectations for better yields. These pose a risk of financial risk. " 

This new asset class will meet the needs of many categories

The new asset class SIP will cater to the needs of the emerging category of investors with high risk appetite. The high investment limit will deter retail investors from investing in this product, while attracting investors with investable funds between Rs 10 lakh and Rs 50 lakh.

17 proposals were approved in the SEBI board meeting held on Monday

In a statement issued after the SEBI board meeting, the regulator said that the proposal to relax the regulatory framework for index-tracking mutual fund schemes (money-based mutual funds) like ETFs (exchange-traded funds) has been approved. This will help in reducing compliance requirements. Let us tell you that a total of 17 proposals have been approved in this important board meeting of SEBI today on Monday.