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SEBI has introduced Specialised Investment Funds (SIF)

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RBI Grade BNABARD ESISEBI
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The Securities and Exchange Board of India (Sebi) has launched “Specialised Investment Funds” – SIF as a distinct asset class. The SIF provides an alternative between portfolio management schemes (PMS) and so-called vanilla mutual funds (MFs).

Key Highlights:

  • SIF bridges the gap between traditional mutual funds and Portfolio Management Services (PMS), with an investment offering that can be tailored to their needs.
  • SIF will allow an investment of Rs 10 lakh or more in different investment strategies, thereby giving a flexible platform for high-net-worth individuals and sophisticated investors.
  • SIFs can invest in units of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), but cannot own more than 20% of the units issued by a single issuer.

Portfolio Management Service (PMS)

A Portfolio Management Service (PMS) is a service that provides investors with personalised investment management. It is not like mutual funds which cater to a large pool of investors with the same investment objective, a PMS account is aimed to meet your specific financial goals, risk tolerance, and investment preferences.

A vanilla strategy on mutual funds is a

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