Capital markets regulator Sebi's proposal for introducing a new asset class for high-risk profile investors can help them gain access to a newer set of strategies including long-short equity fund and inverse Exchange-traded Fund (ETF).
The new asset class is aimed at bridging the gap between mutual funds and Portfolio Management Services (PMS) in terms of flexibility in portfolio construction.
The Sebi's consultation paper floated on Tuesday on 'new asset class' and creating a structure for differentiated, higher risk strategies looks very promising, Radhika Gupta, MD and CEO of Edelweiss Mutual Fund said.
"India is finally opening up to different investment products, styles and approaches. Passive, factor, inverse ETFs, alts and more. There is no single way to invest," she added.
In its consultation paper, the regulator said the new asset class will provide a regulated product with features like SIP (Systematic Investment Plan), higher risk-taking capability, and a higher ticket .
