How to Start a Fund -The Ultimate Guide By Akram

1. How to Start a Fund -The Ultimate Guide Prelude to Funds All this while you have been trading in small amounts of money pertaining to your friends and family's financial needs and now you want to take a huge leap forward and start your own fund? Gaining financial advances at a rapid speed is not a cakewalk, it requires a lot of time and effort to establish a fund. Before you embark on the journey of starting a fund, it's crucial to understand what actually is a fund. Let us shed an ample amount of light on this topic. The first is a Hedge Fund - These alternative investments use pooled funds and a variety of strategies to achieve returns for investors. They can invest in nearly everything from stocks to Bitcoin. Hedge Funds are generally formed to identify and take advantage of specific investment opportunities. These funds are regulated by securities laws, which are enforced by the Securities and Exchange Commission (“SEC”). The other type of fund is referred to as a Futures Fund, which trades commodity and financial futures and is regulated by the Commodity Futures Trading Commission (“CFTC”). The best New York CPA firm will take all legal points into consideration and help you evade market risks. What are the Perks of a Fund? Investment funds are protected against insolvency. The investment assets do not belong to the fund company but are held separately. If the fund company or custodian were to get into difficulty,

2. the fund’s assets would not be affected. Moreover, investment funds and fund providers are subject to strict legal requirements. They have the advantage of limited liability and aggregation of capital. Funds, private or public, are commonly structured as a limited partnership or limited liability company with the fund manager as the general partner or manager. Fund savers do not put all their eggs in one basket when building up their assets. Instead, they invest via only one investment product in many different securities, e.g. in shares or bonds of companies from different sectors or in real estate. This diversification is required by law and reduces investment risk. There is hardly any other financial product that provides savers with such comprehensive information as do investment funds. Even before buying, you can compare different funds using comprehensive product information. Estimated Capital Needs Funds can start with a minimum of $500,000, although there is no minimum equity level. Usually, a fund is launched with $2 million or more. The amount may depend on the trading strategy used, such as a diversified market strategy versus one focused on a single market or complex. This too needs to be included in the fund’s business plan to provide potential investors with enough information to aid their investment decision. Most Funds start with family, friends, and acquaintances as initial investors along with the Fund Operator. This showcases a commitment and the in-built interest in the program and outside investors. Instead of searching 'accounting firm near me' go for the professional accounting services provider. Define the Business Strategy First, outline your business strategy and differentiate your financial plan from those of competitors. Establishing a business strategy requires significant research into a defined market or individual sector. Each fund typically has a life of 10 years, although ultimately timelines are up to the manager's discretion. A sound business plan contains a strategy on how the fund will grow over time, a marketing plan to target future investors, and an executive summary, which ties all of these sections and goals together. Following the establishment of the business plan, set up an external team of consultants that includes independent accountants, attorneys. and industry consultants who can provide insight into the industries of the companies in your portfolio. Choose a seasoned hedge fund auditor to avoid any discrepancies. Rip and Read Fund Starter Checklist These pointers might be of great help to you: ● Amount of initial committed capital ● Trading methodology/strategy ● Fund formation – Domestic / Offshore / Master feeder Structure ● Attorney

3. ● Fund Administrator ● Auditor ● Tax preparation ● Brokerage Relations ● Third-party trading advisors ● Third-party capital sources ● Fee structures ● Reporting requirements ● Back office requirements ● Written operating procedures ● Disaster recovery procedures ● Marketing materials ● Exit strategies The Bottom Line AI Fund Services provides high-end accounting services for the financially savvy, especially clients in the Alternative Investments industry. Hedge fund managers, investors, traders, family offices and high net-worth individuals are the cornerstone of our business. We happen to be the best New York City CPA firm. As a boutique firm specializing in Alternative Investments, our highest priority is providing outstanding client service and establishing long-term relationships based on integrity, objectivity and open communication. Contact us for all your funds and investment queries. Source: https://www.aifundservices.com/start-a-fund.php