Getting started with equity mutual funds

[Meher_Smaran]

@pankushri

Or are there any Portfolio Management Services (PMS) or Alternative Investment Funds (AIF) that do the same?

Yes. PMS are allowed to trade in derivatives as per SEBI guidelines.

@pankushri

Are there any mutual funds that engage in options trading to generate returns?

Some MFs do sell options to hedge and generate returns. BTW, SEBI has recently proposed an asset class specifically keeping this in mind.

What’s the ‘new asset class’ that SEBI just proposed?

SEBI in its latest consultation paper has proposed the introduction of a new asset class/ product category aimed at bridging the gap between Mutual Funds and Portfolio Management Services (PMS) in terms of flexibility in portfolio construction. The proposed New Asset Class seeks to provide investors with a regulated investment product featuring higher risk-taking capabilities and a higher ticket size, aimed at curbing the proliferation of unregistered and unauthorized investment products. Do c…