Expanding Horizons

The Indian mutual fund industry, already experiencing record-high assets under management, is poised to attract a more diverse range of investors. Ongoing discussions between regulators and industry bodies revolve around the introduction of a new mutual fund category. This proposed category aims to cater to investors with a high-risk appetite, potentially requiring a higher minimum investment. It may feature relaxed investment norms, allowing for exposure to complex derivatives and other asset classes to generate superior returns.
  

This development is set to welcome a fresh wave of investors. Many retail investors with a strong risk appetite, but without the necessary Rs 50 lakh for Portfolio Management Services (PMS), previously had limited options. This category will give them a better option. Furthermore, mutual funds offer a more tax-efficient vehicle, providing an added advantage for such investors. 

Gold has turned into a shining armour for a mutual fund portfolio considering its rich history and performance. In our special Diwali edition, we focus on the importance of holding gold as an investment avenue and also explore its auspicious importance. 

As diversification is the key to good investments, exchangetraded funds (ETFs) are one of the best vehicles to hold a diversified portfolio of assets, such as stocks, bonds or commodities. By investing in an ETF, you instantly gain exposure to a broad range of securities, which can significantly reduce risk. Our special report elaborates on this topic with a case study and your expected risk-return trade. 

With a wide range of topics examined and in-depth analysis provided, we trust this Diwali edition will provide our readers with valuable insights into the world of mutual fund investing. 

Wishing everyone a prosperous and healthy Diwali. 

Shashikant Singh
Executive Editor