Table of Contents
Do hedge funds exist in India?
Some examples of hedge funds include names like Munoth Hedge Fund, Forefront Alternative Investment Trust, Quant First Alternative Investment Trust and IIFL Opportunities Fund. There are others such as Singlar India Opportunities Trust, Motilal Oswal’s offshore hedge fund and India Zen Fund.
Is hedge fund regulated in India?
Securities and Exchange Board of India (SEBI) regulates hedge funds in India. Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 was introduced in 2012 to regulate all Alternative Investment Funds (AIF).
How can I start my own fund in India?
Here are the steps to start your own mutual fund company in India:
- Necessary Approval from SEBI.
- Explore Investment Companies.
- Investment Manager.
- Fund Arrangement.
- Partner With Shared Trust.
Do hedge funds in India perform better than other countries?
Indian hedge funds have generated better returns at greater risk (standard deviation of returns) with higher drawdowns. One may argue that hedge funds in India have still outperformed (on risk-adjusted basis) Europe and USA. Within country, hedge fund has higher risk-adjusted return (mean return divided by standard deviation) than ETFs.
Should you invest in hedge funds through SEBI?
Sebi does not require hedge mutual funds to be registered with them so the fund and their investors are kind of on their own. Expensive: The minimum investment ticket size is Rs 1 crore so for a regular investor, putting in such a huge amount in one investment may not be feasible.
Are hedge funds worth the risk?
We all know that risk and returns are directly proportional. Hedge fund returns, just like its risks, are on the higher side. Average annual returns can go as high as 15\% as well and the credit for this is attributed to the hedge mutual fund managers.
What is the strategy of hedgehedge mutual funds?
Hedge mutual funds are complex in their structure and strategy. They invest in almost every asset so they are heavily diversified however strategies like arbitrage and long/short selling keeps it higher on the risk rack.