KYI: Know Your Investment

What do Hedge Funds do?

Hedge Funds are private investment funds that use complex strategies and investments to generate returns for their investors. They are known for their flexibility in investment styles, leveraging a variety of financial instruments, and often employing risk management techniques to balance potential gains with downside protection.

Why Invest in Hedge Funds?

Investing in Hedge Funds offers the potential for higher returns and risk-adjusted performance, independent of market directions. Hedge Funds can provide portfolio diversification and reduce overall volatility, thanks to their unique strategies and ability to capitalize on short-term market movements.

Hedge funds can be categorized by the complex strategies their fund managers adopt:

  • Long/Short Equity: Involves taking long positions in undervalued stocks while shorting overvalued stocks.
  • Market Neutral: Strives to remove market risk by balancing long and short positions.
  • Global Macro: Focuses on global economic trends and events, investing across various asset classes.
  • Event-Driven: Capitalizes on corporate events like mergers, acquisitions, or bankruptcies.
  • Quantitative: Uses algorithms and quantitative models to identify investment opportunities.
  • Fixed Income Arbitrage: Exploits inefficiencies in fixed income securities.
  • Distressed Securities: Specializes in investing in companies in financial distress.
Particulars Hedge Funds (AIF) Mutual Funds
Regulators Requirement Registered under SEBI (Alternative Investment Funds) Regulations,2021, with less frequent reporting requirements and more lenient disclosure norms. Regulated under SEBI (Mutual Funds) Regulations,1996, with daily NAV reporting and strict disclosure requirements.
Investor Profile Target sophisticated investors who can understand and bear the risks associated with such funds. they often require investor to be accerdited or institutional, with a higher minimum investment amount. Aimed at the general public, including retail investors. they are accessible with much lower minimum investment amounts.
Investment Strategies May use complex and diverse strategies, including leverage, short selling, and derivatives trading. They have fewer restrictions on the type of investments they can make. Typically use more conservative strategies. They are subject to strict regulatory Limits on using leverage and shorts selling and often focus on long-only strategies.
Liquidity Often have lock-in periods and do not offer daily liquidity, Redemptions are typically processed at specifield intervals as per the fund's documentation. Provide daily liquidity and are priced at the daily NAV. Investors can buy and sell units on any business day.
Risk Very High Comparatively Lower
Minimum ticket size 1 Crore Not Uniform, depend on the fund terms but can ba as low as 500
Valuation NAV is typically calculated at less frequent intervals, which mat be quarterly or as stipulated in the fund documents. NAV is calculated daily, and pricing is transparent.
Minimum Corpus Rs.20 Crore for a hedge funds Not defined
Fees Ofter charge a management fee and a performance fee (carried interest), which can be substantial, especially if the fund performs well. charge Management fees, which are generally lower than those than those of hedge funds, and typically do not include performance fees.
Taxation The tax on Category III AIF is paid by the AIF fund house directly and the Investor are not charged seperately Enjoy specific tax benefits in India, especially equity-oriented funds, which are taxed differently from debt funds.

Open Investments

Prestige Tech Platina

Bangalore

Location:

Seawoods, Navi Mumbai

Pre-Tax IRR:

14.00%

Minimum Investment:

₹ 25,00,000

Prestige Tech Platina

Bangalore

Location:

Seawoods, Navi Mumbai

Pre-Tax IRR:

14.00%

Minimum Investment:

₹ 25,00,000

Prestige Tech Platina

Bangalore

Location:

Seawoods, Navi Mumbai

Pre-Tax IRR:

14.00%

Minimum Investment:

₹ 25,00,000

Investments for Resale

Prestige Tech Platina

Bangalore

Location:

Seawoods, Navi Mumbai

Net Asset Value:

₹ 28,00,000

Discount to NAV:

3%

Prestige Tech Platina

Bangalore

Location:

Seawoods, Navi Mumbai

Pre-Tax IRR:

14.00%

Discount to NAV:

3%

Prestige Tech Platina

Bangalore

Location:

Seawoods, Navi Mumbai

Pre-Tax IRR:

14.00%

Discount to NAV:

3%

Fully Funded

Prestige Tech Platina

Bangalore

Location:

Seawoods, Navi Mumbai

Net Asset Value:

₹ 28,00,000

Discount to NAV:

3%

Prestige Tech Platina

Bangalore

Location:

Seawoods, Navi Mumbai

Pre-Tax IRR:

14.00%

Discount to NAV:

3%

Prestige Tech Platina

Bangalore

Location:

Seawoods, Navi Mumbai

Pre-Tax IRR:

14.00%

Discount to NAV:

3%

Office No. 106A, B-Wing Kanakia Wall Street,
Andheri - Kurla Rd, Chakala, Andheri East,
Mumbai, Maharashtra - 400093

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