The Securities and Exchange Board of India (SEBI) has proposed the introduction of a new high-risk asset class called NAC, aimed at bridging the gap between mutual funds (MFs) and portfolio management services (PMS). This new asset class, detailed in a consultation paper released on July 16, targets investors with investible funds ranging from ₹10 lakh to ₹50 lakh. The minimum investment required for this asset class is set at ₹10 lakh, and it is designed to offer hedge fund-like products to retail investors, providing them with greater flexibility and potentially higher returns. SEBI's initiative aims to regulate unauthorized products and boost innovative strategies using derivatives, bridging the gap between SIPs starting at Rs 100 and PMS minimums of Rs 50 lakh.