1 / 7

Hedge Fund Characteristics

Primarily, only accredited or qualified investors can invest in hedge funds. That means, high net worth individuals (HNIs), banks, insurance companies, endowments, and pension funds. A minimum ticket size of Rs 1 crore is required to invest in these funds.

avendusgroup
Download Presentation

Hedge Fund Characteristics

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Hedge Fund Characteristics www.avendus.com/india

  2. High-Net-Worth Investors Primarily, only accredited or qualified investors can invest in hedge funds. That means, high net worth individuals (HNIs), banks, insurance companies, endowments, and pension funds. A minimum ticket size of Rs 1 crore is required to invest in these funds. . www.avendus.com/india

  3. Diverse Portfolio Currency, derivatives, equities, real estate, shares, and bonds are among the investments available to hedge funds. Yes, they are required to cover all asset classes and are limited solely by the mandate. . www.avendus.com/india

  4. Higher Fees They work with the expense ratio and management fee concepts. It's 'Two and Twenty' around the world, which means a 2% fixed charge and 20% profit share. In India, the management fee for hedge funds can range from less than 2% to less than 1%. Profit sharing usually runs from 10% to 15% in most circumstances. www.avendus.com/india

  5. Risks have increased Hedge fund investment tactics could lead to big losses. The average investment lock-in period is a little over a year. The use of leverage by these funds could result in significant investment losses. www.avendus.com/india

  6. Taxations and Regulations Tax pass-through status is still unavailable for Category III AIFs (hedge funds). This means that the income from these funds is taxable at the level of the investment fund. As a result, the tax burden will not be passed on to unit holders. This is a disadvantage for finance companies in India  because they do not compete on an equal footing with other mutual funds. Hedge funds are not required to register with a securities regulator, and there are no reporting obligations, such as regular disclosure of Net Asset Values (NAV). www.avendus.com/india

  7. Thank You www.avendus.com/india

More Related