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In Dec 2023, Sebi chief Madhabi Puri Buch had said, "We feel that there is room for an additional asset class somewhere between mutual funds and PMS... Sebi is looking into a whole new asset class”

Mumbai-based Mayank Mehta has been investing in mutual funds (MFs) sporadically over the past 10 years. Though he often signs monthly cheques for systematic investment plans (SIPs), he is more inclined towards derivatives. “Most of my MF investments have yielded good returns, but I am more drawn to derivatives trading. It gives the adrenaline rush that the slow-grinding MF investments don’t,” says the 30-year-old software engineer.

Mehta concedes that derivatives are not easy to crack and one can often end up on the losing side. He also takes cues from random messages on social media, but cautions

Sebi's new asset class proposal: How far can it quench risk-taker's thirst?

Currently, there is no structured product available to those who have a negative outlook. This drives them to derivatives, where only one out of 10 investors makes profits

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