FINguide Buddy

  Introduction The National Pension System (NPS) is a government-backed retirement savings scheme designed to encourage long-term investment for retirement. Within the NPS framework, Tier 1 is the mandatory account aimed at building a retirement corpus, while Tier 2 is a voluntary account that allows for more flexibility in investment and withdrawals.  When it comes to wealth creation, investors often seek avenues that offer a blend of growth potential, tax efficiency and liquidity. Two popular options in this regard are NPS Tier II accounts and mutual funds. NPS Tier II, a voluntary investment option under the National Pension System, provides flexibility in withdrawals and aims to encourage disciplined saving for the future. On the other hand, mutual funds are managed investment vehicles that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other assets. Both options have their unique advantages and drawbacks, and the choice betwee...

🔹 1. What is Specialized Investment Fund (SIF)? ✅ New Investment Category introduced by SEBI 🏦 ✅ Bridges the gap between Mutual Funds (MFs) 🏢 and Portfolio Management Services (PMS) 💼 ✅ Provides more flexibility than MFs but isn’t as tailored as PMS ✅ Comes into effect from April 1, 2025 📅 🔹 2. Who Can Launch an SIF? (Eligibility) 🏛️ A Mutual Fund (MF) registered under SEBI can launch an SIF if it meets either of these: 🛤️ Route 1: Strong Track Record ✔️ 3+ years of operations ⏳ ✔️ Average AUM of ₹10,000 crore in the last 3 years 💰 ✔️ No regulatory action against the AMC/Sponsor in the last 3 years ❌🚔 🛤️ Route 2: Expert Team ✔️ Appoints a Chief Investment Officer (CIO) 👨‍💼 10+ years experience managing at least ₹5,000 crore AUM ✔️ Hires an additional Fund Manager 👩‍💼 3+ years experience managing at least ₹500 crore AUM 🔹 3. Branding & Advertisement 📢 ✅ SIF must have a distinct brand name & logo separate from its MF business 🎨 ✅ For first 5 years , ...

 

                          Source : Value Research Online