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Debt funds versus Arbitrage funds in a falling interest-rate environment?

With the change in taxation of debt funds (gains to be taxed at an investor’s income tax-slabs), we normally recommend investors invest in Arbitrage funds instead (due to their superior taxation leading to better post-tax returns). This is discussed in greater detail in our blog: Arbitrage Funds: Why Post-tax Yields are Superior to Debt Funds? … Read more

What are the main risks of a Pre-IPO Fund?

Pre-IPO funds are often considered to be the safest form of unlisted investing (please note, that all unlisted funds are typically higher risk-reward than even the most aggressive listed equity funds). Since Pre-IPO funds typically invest in more known & mature businesses, that are typically slated for an IPO in a 1-2 year period, the … Read more

How does the risk of Pre-IPO Funds differ from Venture Capital Funds?

Both Pre-IPO funds and Venture Capital Funds are funds that invest in unlisted equities, and have some similar risk – Exit Risk, Lack of transparency on valuations, Illiquidity risk etc. However, while both funds have a similar level of risk, there are some important differences: Maturity of the Business Illiquidity Risk As a category, Pre-IPO … Read more

What Investments are open to US-based investors?

Mutual Funds: Axis, Birla, DSP, Edelweiss, HDFC, ICICI, IDFC, IIFL, Kotak, L&T, Motilal, Reliance, SBI, Sundaram, UTI PMS: Stallion, Equirus, Bouyant, Alchem, Motilal, WhiteOak AIF, Kotak, Alta Cura, Nine Rivers, AlfAccurate, Ambit, Marcellus

Are state-government bonds risk-free?

Investors often view state government bonds, to be very low-risk, given the fact that they are backed by the government. Out here, it is important to understand the difference between a central government bonds & the state government bond. The central government technically has the power to ‘print money’ (via the RBI), and it is … Read more

Are post-fee and post-tax returns of long-short strategies still attractive?

Long-short AIF’s that aim to deliver positive absolute returns that are uncorrelated to market conditions, are a popular and fast growing segment in the Indian alternatives industry. However, due to the use of derivatives, the taxation of these funds are unfavourable since gains are typically considered speculative income (tax rate of 35% in case of … Read more