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.
2. www.avendus.com/indi
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.
.
High-Net-Worth Investors
3. www.avendus.com/indi
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.
.
Diverse Portfolio
4. www.avendus.com/indi
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.
Higher Fees
5. www.avendus.com/indi
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.
Risks have increased
6. www.avendus.com/indi
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).
Taxations and Regulations
