Did you know these important basics of Hedge fund India?

Hedge fund India is still in the developmental phases and is a less popular entity as compared to mutual funds. More or less, it inclines in the same line as the mutual fund and involves highly complex strategies to churn out high returns for its users. Hedge funds reap out the benefits of both of both national as well as international markets. However, only accredited investors can have access to such hedge funds, as there is lesser requirement of SEC regulations. 

A short introduction to Hedge funds

In simple terms, hedge funds India is an investment option that involves least risk factors. Derivatives, bonds, equity, currencies, and convertible securities are some of the noteworthy asset classes under this type of investment. It also includes substantial employment of leverages, both short- and long-term positions under derivatives (listed and unlisted). 

Hedge funds investing in India

These privately managed funds tend to stand on a bit expensive side. This makes it a choice for the financially settled people to opt it for the investment. It is essential for the hedge fund investors to know about the aggressive risk factors and work out his investment accordingly. As the structure starts becoming more complex, the risk factor starts gaining a firm grip. By employing a proper strategy, hedge funds can yield as high as 15 to 20 percent annual returns. 

Features of Hedge funds in India SEBI

Clinching a green flag in 2012, hedge funds became an alternative investment source for those handpicked investors who are ready to bear aggressive risks. Here are some of its striking features:

• Investors have a high net-worth: Qualified investors are only compatible with the Hedge funds India investment. Such investors may be any bank, endowments, pension funds, or even insurance companies. All these investors are clubbed together under high-net-worth investor. 

• Aggressive risk factor: The investment strategy for hedge funds is entirely different from the one under mutual funds. In fact, it involves  a higher risk factor with a long locking period. Leverages can twist your investments into massive losses. 

• Regulations: Registering hedge funds under securities markets regulator is no longer a mandatory guideline. There is no requirement to disclose NAV (Net Asset Values) either.

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Created on Mar 15th 2019 02:08. Viewed 311 times.

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