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Concept and benefits of asset management companies and long short funds

An asset management company (AMC) is a financial services firm that invests in a variety of mutual fund schemes. The money invested in these schemes is often received from the AMC's clients and then invested in securities that are consistent with the AMC's financial objectives.

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Concept and benefits of asset management companies and long short funds

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  1. Concept and benefits of asset management companies and long short funds www.avendus.com/india

  2. Meaning of Asset Management Company An asset management company (AMC) is a financial services firm that invests in a variety of mutual fund schemes. The money invested in these schemes is often received from the AMC's clients and then invested in securities that are consistent with the AMC's financial objectives. As a result, it is critical to invest with an Asset Management Company that offers a diverse range of investing options with excellent returns on investment. www.avendus.com/india

  3. Regulation of AMCs The Asset Management Companies in India are regulated by the Securities and Exchange Board of India (SEBI) which is the regulator of the capital market in India. These AMCs for the purpose of protection of the interest of the investors are largely regulated by the Association of Mutual Funds of India (AMFI). www.avendus.com/india

  4. What is a long short fund? A Long Short fund, as the name implies, is one that invests in both long and short positions in the market. Long-short funds are a relatively new phenomenon in the financial industry, but they have been introduced by more than 35 fund managers in the previous seven years, and their popularity appears to be growing. These funds presently have a combined AUM of more than $2 billion (Rs. 15,000 crores). www.avendus.com/india

  5. Benefits of long short funds Long/short mutual funds allow investors to benefit from a long/short investment strategy while keeping greater investment flexibility and easy access to their money than long-only funds. Long/short mutual funds, like other mutual funds, have daily pricing and allow you to liquidate your investment at any moment. www.avendus.com/india

  6. Advantages of long short funds The following are the advantages of Long Short Funds in India: Diversified Investment: HNIs seeking diversification in their portfolios have a fantastic opportunity to invest in Long Short funds. It ensures portfolio stability and protects against market or economic downturns. Excess Returns: Because Long-Short funds aren't solely reliant on the market rising, they can profit from both dropping and rising markets. Investors seeking higher returns will find volatility to be a helpful ally. It does, of course, come with a bigger portfolio risk. Short Selling: Short selling is not authorised, unlike in any other type of mutual fund. Short selling is permissible in the case of a Long-Short fund, which can then be used as leverage to enter a new long position in the market. www.avendus.com/india

  7. Thank You www.avendus.com/india

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