Structured investment vehicles have the limitation of being able to invest in only one asset class. For example, if an investor buys shares in a company, they can't buy shares in another company at the same time.
The major limitation of SIVs is that they can only invest in other SIVs or fixed income securities like government bonds and corporate bonds. They cannot invest in equities, which means they are not suitable for investors who want to diversify their portfolio with equities.
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