A new type of mutual fund

Someone asked me what my opinion on this new type of mutual fund was, and I gave what I thought was the only possible reasonable response, "Come back after three years, and I'll tell you what I think of them." That is not a joke, not even a bit. I'm being a bit aggressive in my estimate - it will probably take five years to form a reasoned opinion of these funds. Anyhow, let's rewind a bit and see what is going on here. SEBI has announced the creation of a new type of mutual fund known as an 'investment strategy'. While the name does not communicate much, it is essentially a higher risk and (hopefully) higher risk variant of normal mutual funds. As the SEBI press release puts it, this new type of fund lies somewhere between existing mutual funds and Portfolio Management Services (PMSs). Further, it tells us that this new type of fund is designed to offer greater flexibility and higher risk-taking capabilities for investors with deeper pockets. Th