Is hedge fund illegal in India?
Hedge funds in India do not need to be necessarily registered with Securities and Exchange Board of India (Sebi), our markets regulator or disclose their NAVs at the end of the day….Things to keep in mind before investing in hedge mutual funds.
| Asset Management Company | ||
|---|---|---|
| UTI Mutual Fund | HSBC Mutual Fund | Qauntum Mutual Fund |
Can I open a fund in India?
You can create a trust, with a set of trustees. You then apply to SEBI to register the trust as an AIF VC Fund, where you will collect money from investors and invest in companies. See SEBI’s How to get registered as a VC Fund and the SEBI VC Regulations.
How is the hedge fund industry regulated in India?
One aspect that has set the hedge fund industry apart is the fact that hedge funds face less regulation than mutual funds and other investment vehicles. In India according to SEBI regulations, hedge funds fall under Category 3 of AIF (Alternate Investment funds). And the requirements to start a hedge fund is too tight as given by SEBI.
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.
What is a hedgehedge mutual fund?
Hedge mutual funds are a type of mutual fund that are set up as private investment limited partnerships.
What are the types of securities where hedge funds can invest?
There is a long list of securities where hedge mutual funds can invest: Equities, bonds, real estate, currencies, convertible securities, derivatives among others. What are the different types of hedge funds in the market? There are mainly three types: