India’s asset managers mull launch of higher-risk mutual fund -industry body

(Reuters) – India’s asset managers are in discussions to launch a new mutual fund product with relaxed risk management norms but requiring a minimum investment amount, a mutual fund industry body said on Friday.

“There are deliberations within the industry for an instrument that caters to investors who are looking for an intermediate investment product between mutual funds and portfolio management services (PMS),” the Association of Mutual Funds in India (AMFI) said.

PMS products have higher risk strategies to generate better returns and require a minimum investment amount of 5 million rupees (just over $60,000).

The industry body said the discussions are at a ‘very nascent stage’ and will go through the consultative approval process with the country’s market regulator. ($1 = 83.2460 Indian rupees)

(Reporting by Jayshree P Upadhyay; Editing by Savio D’Souza)