Close Menu
Fund Focus News
    Facebook X (Twitter) Instagram
    Trending
    • Bitcoin ETFs Lose Accumulation Momentum Despite Short-Term Inflow Spikes
    • Small-Cap ETFs: ISCB Outperforms, but SPSM Yields More
    • 2 Vanguard Funds That Can Turn $450 Per Month Into $1 Million in 30 Years
    • NYC may reinvest in Israel bonds in defiance of mayor Mamdani’s stance
    • Private credit investors pull $7bn from Wall Street’s biggest funds
    • Debt mutual funds v/s tax-free bonds: Which is safer?
    • Top Mutual Funds for 2026 As Per Perplexity AI Picks
    • Active ETFs Face New Cost Pressure as Schwab Weighs Distribution Fees: JPM – ARK Innovation ETF (BATS:ARKK), PIMCO Active Bond Exchange-Traded Fund Exchange-Traded Fund (NYSE:BOND)
    Facebook X (Twitter) Instagram
    Fund Focus News
    • Home
    • Bonds
    • ETFs
    • Funds
    • Investments
    • Mutual Funds
    • Property Investments
    • SIP
    Fund Focus News
    Home»Funds»How is Sebi’s new asset class different from mutual funds, PMS and AIF
    Funds

    How is Sebi’s new asset class different from mutual funds, PMS and AIF

    October 19, 2024


    Sebi‘s new asset class introduces a unique avenue for investors, setting it apart from existing investment structures like mutual funds, portfolio management services (PMS), and alternative investment funds (AIF). The primary difference lies in their investment strategy and risk profile.

    Unlike mutual funds, which pool resources from multiple investors for diversified portfolios, or PMS, which offers personalised portfolios, Sebi’s new asset class allows for innovative, structured investments in alternative assets. It also differs from AIFs by offering lower entry barriers, facilitating broader investor participation.

    Key differences between SEBI’s New Asset Class and existing products (Mutual Funds, PMS, and AIFs)

    1. Investment strategy: Mutual funds pool investments for diversified portfolios, while SEBI’s new asset class may focus on specific sectors or alternative investments, offering tailored exposure to niche markets.
    2. Entry barriers: Unlike PMS and AIFs, which often require high minimum investments (Rs 50 lakh for PMS, Rs 1 crore for AIFs), the new asset class can have a minimum amount as Rs 10 lakh. Mutual funds have a minimum amount as low as Rs 100.
    3. Regulation and risk: AIFs are largely unregulated compared to mutual funds and PMS, while the new asset class falls under stricter SEBI oversight, focusing on transparency and risk management.
    4. Customization and control: PMS offers individualized portfolios, whereas mutual funds and AIFs group investors. SEBI’s asset class may balance between customized investment strategies and standardized offerings like mutual funds.
    5. Liquidity: Mutual funds offer relatively high liquidity, while AIFs and PMS often require longer lock-in periods. The new asset class may provide flexible liquidity options, bridging the gap between these offerings.

    What does each of these investment avenues mean:

    SEBI’s New Asset Class

    SEBI’s new asset class is an upcoming investment vehicle designed to offer a distinct alternative to traditional asset classes like mutual funds (MFs), Portfolio Management Services (PMS), and Alternative Investment Funds (AIFs). The offerings under the new product will be referred to as ‘Investment Strategies’, to maintain a clear distinction from the schemes offered under the traditional mutual funds. The new product is intended to add depth and variety to the investment landscape of the country through a new asset class.

    Mutual Funds (MFs)

    Mutual funds pool money from multiple investors to invest in stocks, bonds, or other securities. They are highly regulated, offer diversification, and are accessible to a wide range of investors, making them one of the most popular investment vehicles. MFs are suitable for those looking for lower risk and ease of management.

    Portfolio Management Services (PMS)

    PMS offers customized portfolio management to wealthy investors, with a minimum ticket size of Rs 50 lakh. It provides personalized attention, allowing investors to tailor their portfolios based on risk appetite and goals. While providing more control than mutual funds, PMS often carries higher fees and risks.

    Alternative Investment Funds (AIFs)

    AIFs are investment funds pooled privately and involve investments in real estate, hedge funds, private equity, etc. They are open to sophisticated investors with a minimum entry limit of Rs 1 crore. AIFs come in three categories—high-risk, moderate-risk, and lower-risk funds—and are less regulated compared to mutual funds.

    Each of these investment vehicles offers unique benefits and risks, and SEBI’s new asset class is expected to fill gaps or create new opportunities within the Indian financial ecosystem.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email

    Related Posts

    2 Vanguard Funds That Can Turn $450 Per Month Into $1 Million in 30 Years

    January 17, 2026

    Private credit investors pull $7bn from Wall Street’s biggest funds

    January 17, 2026

    Top Mutual Funds for 2026 As Per Perplexity AI Picks

    January 16, 2026
    Leave A Reply Cancel Reply

    Top Posts

    The Shifting Landscape of Art Investment and the Rise of Accessibility: The London Art Exchange

    September 11, 2023

    Charlie Cobham: The Art Broker Extraordinaire Maximizing Returns for High Net Worth Clients

    February 12, 2024

    The Unyielding Resilience of the Art Market: A Historical and Contemporary Perspective

    November 19, 2023

    NYC may reinvest in Israel bonds in defiance of mayor Mamdani’s stance

    January 17, 2026
    Don't Miss
    ETFs

    Bitcoin ETFs Lose Accumulation Momentum Despite Short-Term Inflow Spikes

    January 17, 2026

    TLDR: Bitcoin ETF holdings have moved sideways since early 2025, signaling stagnation rather than renewed…

    Small-Cap ETFs: ISCB Outperforms, but SPSM Yields More

    January 17, 2026

    2 Vanguard Funds That Can Turn $450 Per Month Into $1 Million in 30 Years

    January 17, 2026

    NYC may reinvest in Israel bonds in defiance of mayor Mamdani’s stance

    January 17, 2026
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    EDITOR'S PICK

    Avalanche, Sui, and Bonk ETFs Test SEC as Issuers Push Into Riskier Territory

    September 16, 2025

    US jury convicts Mozambique’s ex-finance minister Manuel Chang in ‘tuna bonds’ corruption case

    August 8, 2024

    EV Fund Outflows Hit $1.6 Billion as Trump Fears Add to Slowdown

    August 7, 2024
    Our Picks

    Bitcoin ETFs Lose Accumulation Momentum Despite Short-Term Inflow Spikes

    January 17, 2026

    Small-Cap ETFs: ISCB Outperforms, but SPSM Yields More

    January 17, 2026

    2 Vanguard Funds That Can Turn $450 Per Month Into $1 Million in 30 Years

    January 17, 2026
    Most Popular

    🔥Juve target Chukwuemeka, Inter raise funds, Elmas bid in play 🤑

    August 20, 2025

    💵 Libra responds after Flamengo takes legal action and ‘freezes’ funds

    September 26, 2025

    ₹10,000 monthly SIP in this mutual fund has grown to ₹1.52 crore in 22 years

    September 17, 2025
    © 2026 Fund Focus News
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.