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In a clarification on a media report which talked about introduction of a new asset class, AMFI said that there has been a discussion in the industry to introduce a new product category which will fall between mutual funds and PMS.
AMFI said that there is an intent to introduce a new asset class which will have flexibility in terms of investment norms with a certain minimum ticket size.
The trade body clarified that such a product cannot be compared with AIF and PMS.
It said, “With reference to the recent media reports published regarding the proposal to introduce a new mutual fund category that comes with high-risk and higher minimum investment it is clarified that there is a whole spectrum of products in the securities market in terms of the risk and the applicability of prudential norms. For instance, given the retail participation in mutual funds, prudential norms applicable to mutual funds are higher, as compared to others investment instruments, where prudential norms are flexible in line with ticket size of investment. There are deliberations within the industry for an instrument that caters to investors who are looking for an intermediate investment product between mutual funds and PMS.”
AMFI said that the discussion is at a very nascent stage and it will go through the consultative approval process with the regulator.
