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Asset managers plan higher risk investment products after SEBI rule change

VCCircleVCCircle · 9d
Asset managers plan higher risk investment products after SEBI rule change

- SEBI allowed asset management firms in India to offer higher risk investment options such as long-short equity and derivative-based plans. - Top Indian and global asset managers, holding 25% of assets under management (AUM) in India's mutual fund industry, plan to launch such investment options in the next six-eight months. - Presently, alternate investment funds (AIF) offer similar higher risk investment plans, but mutual funds will offer these options with a minimum investment size of 1 million rupees. - The new investment options offered by mutual funds will follow strict risk disclosure requirements and investment limits, such as limiting derivatives exposure to 25% of the fund's assets. - Foreign asset managers may have an initial advantage due to their international market expertise, but domestic fund houses are also finalizing plans to launch these options in the near future.

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