Friday, December 27, 2024

Based on the information provided, SEBI has recommended that Specialized Investment Funds generally:- Minimum Rs. A new asset class with an investment of 10 lakhs.

SEBI Minimum



SEBI notes that the Securities and Exchange Board of India (SEBI) has introduced a new investment vehicle at the intersection of mutual funds and portfolio management services (PMS) in terms of profitability. fits Called 'Specialized Investment Funds' or SIFs, these products have a minimum investment threshold of Rs. 10 lakh and will offer investors exposure to advanced investment strategies from such investment


These investment strategies may include equity, debt, real estate investment trusts (REITs) or derivatives such as futures and options.

  This would mean that SIFs have a higher property risk, higher return profile as compared to regular equity funds, as per the individual formula chosen by the Asset Management Company (AMC) and the underlying strategy. can give.


 The demand for a product like SIF is long overdue, as investors demand a product that offers something more advanced than regular planning mutual funds. does but is more affordable than PMS, which offers foreign policies but keeps a minimum investment threshold of Rs 50 lakh. Although they are showing the possibility of profiting more than the amount of your property per investor, you should not be distracted by this and keep an eye on the next news.


SIF will also be structured like a mutual fund, with the end investor and the fund company managing the assets, as well as looking at the various companies that will bring this new variable into play. Same investment and redemption process for both, and same tax treatment. will be provided.

  Over time, PMSs have become complex products, especially For AMCs, because they manage each investor's portfolio individually.

  To protect the interests of investors, SEBI has imposed certain limits on SIFs, such as a maximum investment of 10% in any one listed company at fund level and 20% for issuers of debt securities. However, Government Securities (G-Secs) and Treasury Bills (T-bills) are exempt from this restriction.

  Fund managers managing SIFs are required to be certified by the National Institute of Securities Markets (NISM).

 The structure of these SIFs, like many others, will allow the fund manager to pursue bolder investment bets or exotic derivatives strategies to maximize returns while also optimizing the risk-return profile by seeking more diversified asset exposure depending on the market environment.

  Since SIFs will follow the mutual fund structure, their fee structure will work within the framework defined for mutual funds. Charges and expenses for investment strategies under SIF will be as per Regulation 52 of Mutual Fund Rules.











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