FME Regulatory Intelligence, Learning & Practice · IFSCA (Fund Management) Regulations, 2025

Topic C of 6 · 14 terms

Fund products and strategies

What does the fund invest in, and how?

Tap any term to open its full explanation: the meaning, an everyday comparison, how it works, a real example, why it matters, look-alike terms, what the rules say and a practice question.

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1 · In one sentence

A pooled fund open to the public, including small investors, run by an asset management company under SEBI's mutual fund rules.

2 · Think of it like thisThink of a shared taxi anyone can board for a small fare. A mutual fund is open to the public, takes small amounts and is tightly regulated so ordinary investors are protected.

4 · A real-world example

An investor puts ₹5,000 a month into an equity mutual fund through a SIP.

5 · Why it matters

It is the most common way for ordinary investors to invest in markets.

6 · How is it different from AIF?

Mutual fundOpen to the public, small tickets
vs
AIFPrivate, minimum ₹1 crore

An AIF is private and needs ₹1 crore; PMS needs ₹50 lakh and holds securities in your own name; a mutual fund is open to all.

7 · Regulatory meaning

Funds covered by SEBI's mutual fund regulations are outside the definition of an AIF (SEBI AIF Regulations, Reg 2(1)(b)(ii)).

8 · Explain it to someone else

Remember it this way: Mutual fund = pooled, public, small tickets.

Which is open to the public with small investments?

Plain-English explanations to aid understanding. Regulatory points cite their source; general finance concepts are explained as commonly used. Not legal or tax advice.

Prashant Kumar

Meet the expert

CS Prashant Kumar

Company Secretary & Compliance Officer
Global Horizons Capital Advisors (IFSC) Private Limited — an IFSCA-licensed investment banker

13+ years of experienceFCS Fellow member, ICSIAuthor Audit Under Fire

Published in The Chartered Accountant (Jun 2025, Jan 2025, Mar 2024) and Chartered Secretary (Aug 2023)

Prashant Kumar is a seasoned Company Secretary and corporate governance strategist with more than 13 years of experience advising large corporates, promoter-led groups and global businesses on compliance, regulatory risk and board governance. In GIFT IFSC, the IFSCA regime is his day job rather than a research topic.