"Revolutionizing Alternative Investments: SEBI's Move to Bring Direct Plans to AIFs Could Change the Investment Game"

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On 11th April 2023, The Securities and Exchange Board of India (SEBI) directed Alternative Investment Funds (AIFs) to offer direct plans to investors. Direct plans are investment plans that allow investors to invest directly with the fund house, rather than through intermediaries such as distributors or brokers.


This move is expected to increase the allocation to AIFs by investors, as it would provide them with a cheaper and more transparent investment option. The article also states that the move is in line with SEBI's efforts to promote direct investments in mutual funds and reduce the cost of investing for investors.

AIFs are investment vehicles that pool funds from high-net-worth individuals and institutions to invest in a variety of asset classes such as real estate, private equity, and hedge funds. They are regulated by SEBI and require a minimum investment of Rs 1 crore ($136,000) from each investor.

Overall, SEBI's move to require AIFs to offer direct plans to investors is expected to benefit both investors and AIFs, as it would provide investors with a cheaper and more transparent investment option, while also helping AIFs to attract more investments.

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