The new asset class proposed by the Securities and Exchange Board of India (Sebi) is expected to bring innovative investment products and styles in the market, but could also encourage some investors to move from existing high-risk products like portfolio management services (PMS) and alternative investment funds (AIFs).
In comparison to mutual funds starting at Rs 100 and PMS at Rs 50 lakh, the new asset class, which targets investors with higher risk appetite with a minimum investment of Rs 10 lakh, can provide them with the higher alpha that many seek.
