Tue Oct 01 05:55:59 UTC 2024: ## SEBI Unveils New Investment Scheme for High-Net-Worth Individuals
**Mumbai:** In a move to diversify investment options, the Securities and Exchange Board of India (SEBI) has launched a new investment scheme specifically targeting high-net-worth individuals (HNIs) with a minimum investment of ₹10 lakhs.
This novel scheme bridges the gap between mutual funds and portfolio management services (PMS), offering a unique investment opportunity. While the operational structure closely resembles mutual funds, the portfolio management aspect will function similarly to PMS, providing fund managers greater flexibility in structuring portfolios.
The key focus of this scheme will be on “investment strategies,” a departure from traditional mutual fund schemes. SEBI emphasizes that this initiative is part of its broader strategy to diversify investment options within the country.
The minimum investment for PMS currently stands at ₹50 lakhs. This new scheme, however, is designed for those seeking a higher risk profile and larger investment options, differentiating itself from mutual funds.
The new scheme will offer greater flexibility compared to current mutual fund schemes, which operate under stringent regulations. For instance, the scheme allows investments in unlisted shares, a restriction in conventional mutual funds. Furthermore, the scheme relaxes limits on investments in debt schemes, REITs, and InvITs. Derivative trades will also be permitted, subject to specific conditions, for purposes such as hedging and portfolio rebalancing.
This innovative investment opportunity will allow access to a wide range of investments, including short-term and long-term equity funds, ETFs, SIPs, SWPs, and STPs.
The new scheme is expected to be popular among HNIs who are seeking greater flexibility and control over their investments.
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