alchemycapitalmanagement

[alchemycapitalmanagement]

Exploring the Benefits of Alternative Investment Funds

In the world of finance brimming with potential growth opportunities, investors actively seek strategic ways to optimize their portfolios and generate higher returns. Alternative Investment Funds (AIFs) have emerged as a promising avenue, offering a diverse range of investment options beyond traditional asset classes like stocks and bonds.

For investors wondering - are alternative investments worth it? The answer is a definite yes. In this blog, we will explore the many advantages of alternative investment funds; each one highlighting how they can help investors achieve greater diversification, potentially higher returns, and reduced risk.

[alchemycapitalmanagement]

In the vast world of finance, investors are presented with a myriad of choices to build wealth through potential investment vehicles. Today, Portfolio Management Services (PMS) and Mutual Funds are two popular options that offer distinct approaches to managing investments. While both aim to optimize returns, they differ in their purpose and degree of customization.

Portfolio Management Services, often considered a more personalized and exclusive investment avenue, involve a professional portfolio manager making investment decisions on behalf of individual clients. PMS is usually tailored to high-net-worth individuals or institutions seeking a customized approach to wealth management.

Mutual Funds, on the other hand, take a collective and more standardized approach to investment management. In a Mutual Funds, pooled money from various investors is invested in a diversified portfolio of stocks, bonds, or other securities, managed by professional fund managers. One of the primary advantages of Mutual Funds is their accessibility. They cater to a broad spectrum of investors, from beginners to seasoned players.

The important question for investors is - when it comes to PMS vs. Mutual Funds, which one better serves their investment goals? The answer to this question lies in the factors that set these two key investment vehicles apart. In this blog, we will explore the differences between PMS vs. Mutual Funds to enable investors to make informed decisions.

[alchemycapitalmanagement]

Get Familiar With Taxation Of AIFs In India

Alternative Investment Funds (AIFs) have emerged as promising investment opportunities beyond traditional assets for investors in India. They enable high-net-worth individuals (HNIs) to diversify their investment portfolios. While AIFs provide the potential for higher returns, investors must also be aware of the tax implications associated with these investments. They play an important role in deciding which category of AIF to invest in.

In this blog, we will delve into the taxation of AIFs in India, helping you understand how these unique investment vehicles are taxed and the key considerations for investors. Before diving into Taxation of Alternative Investment Funds (AIFs), let's briefly recap what AIFs are.

AIFs are a distinct category of investment funds that differ from traditional investment options. They are designed to employ a wide range of investment strategies, including private equity, hedge funds, real estate, infrastructure, venture capital, and more. AIFs are typically managed by professional fund managers and cater to accredited or sophisticated investors, such as institutions, pension funds, and high-net-worth individuals.

Read more here - https://www.alchemycapital.com/blogs/get-familiar-with-taxation-of-aifs-in-india.aspx

[alchemycapitalmanagement]

Offshore Funds in GIFT IFSC: Exploring Opportunities

GIFT City (Gujarat International Finance Tech-City), located at Gandhinagar in Gujarat, is emerging as a global financial hub, redefining the financial landscape in India. It is an initiative of the Government of Gujarat supported by the Government of India for the development of a greenfield smart city and IFSC (International Financial Services Center).

Headquartered at GIFT IFSC, Gandhinagar in Gujarat, the International Financial Services Centres Authority (IFSCA) is established under the International Financial Services Centres Authority Act, 2019. India's maiden offshore financial centre. The regulatory powers of RBI, SEBI, IRDAI, and PFRDA have been vested in IFSCA for regulating financial institutions, products, and services in IFSC at GIFT City. It is a special financial jurisdiction in India that allows investors to conduct foreign currency transactions with ease.

GIFT IFSC is home to multiple services, to name a few - capital market, banking services, fintech companies, startups, and offshore asset management. It is designated as a Special Economic Zone (SEZ) and offers incentives to attract foreign investors and financial institutions. This includes tax benefits, regulatory ease, and world-class infrastructure that is a blend of sustainability and technology.

One of the key attractions within this ambitious project is the establishment and operation of offshore funds. In this blog, we will underline the significance of offshore funds in GIFT IFSC, as well as the numerous benefits that they bring to the table for investors looking to strengthen their portfolios.

Read more here - https://www.alchemycapital.com/blogs/offshore-funds-in-gift-ifsc-exploring-opportunities.aspx

[alchemycapitalmanagement]

Alternative Investment Funds: Purpose & Types

Investors and institutions across the globe now have easier access to promising investment opportunities. One of the most sought-after investment options today is an Alternative Investment Fund (AIF).The AIF industry has witnessed a 105% CAGR over the last 10 years and the total AUM was at INR 6.41 Lakh Crore, as of 2021-22. (Source: The Economic Times)

Given their high-risk, high-return nature, most AIFs are held by institutional investors or accredited, high-net-worth individuals. AIFs focus on alternative investments, including private equity, hedge funds, real estate, venture capital, infrastructure, commodities, and distressed assets. They are managed by professional investment managers or investment companies with expertise in specific alternative asset classes.

Funds are pooled from various investors to invest in asset classes other than traditional stocks, bonds, and cash. Investors leveraging AIFs must dedicate a minimum amount of INR 1 crore Investors can choose from several types of alternative investment funds, according to their specific objectives.

Read More here - https://www.alchemycapital.com/blogs/alternative-investment-funds-purpose-types.aspx

[alchemycapitalmanagement]

PMS vs. AIFs: Know the Key Differences

The investment industry is now home to strategies that cover securities beyond mutual funds. Realizing the potential of these investment vehicles, HNIs, and foreign nationals are actively looking to invest in them. Two of the most sought-after options today are Alternative Investment Funds (AIFs) and Portfolio Management Services (PMS). While both services share certain similarities, it is the differences that give us a better glimpse into their nuances.

In this blog, we will address the dilemma of Alternative Investment Funds vs. Portfolio Management Services by understanding some of the key differences between AIFs and PMS.

Primary Differences Between AIFs & PMS

Before we dive into the differences, let us better understand the meaning of PMS and AIFs, along with their types.

An Alternative Investment Fund (AIF) is a type of collective investment scheme that pools funds from various investors to invest in asset classes other than traditional stocks, bonds, and cash. AIFs focus on alternative investments, which can include private equity, hedge funds, real estate, venture capital, infrastructure, commodities, distressed assets, and such. They offer the potential for higher returns and can be suitable for investors seeking to diversify their portfolios.

AIFs are managed by professional fund managers or investment firms with expertise in specific alternative asset classes. They are categorized into three key types. Category I AIFs include Venture Capital Funds, Social Venture Funds, Infrastructure Funds, and Angel Funds focused on priority sectors. Category II AIFs include Private Equity Funds, Debt Funds, Funds of Funds, and Category III AIFs primarily comprise Hedge Funds, PIPES Funds, etc.

PMS is a personalized investment service offered by financial institutions or professional portfolio managers to investors ready to take a certain degree of risk on their portfolio with enhanced exposure to familiar asset classes, including equity and debt. There are three types of Portfolio Management Services (PMS). With Discretionary Portfolio Management Services, all control over the portfolio management decisions is handed to the portfolio managers. It is up to them to build tailored strategies.

Non-Discretionary Portfolio Management Services require fund managers to provide investment ideas and the investors take the final call. Fund Portfolio managers cannot execute any actions without the investor’s approval.

Advisory services are where portfolio managers only provide expert advice to the investors, it is the investors who execute strategies based on the advice.

Read more here - https://www.alchemycapital.com/blogs/pms-vs-aifs-know-the-key-differences.aspx

[alchemycapitalmanagement]

Get Familiar with Portfolio Management Services

The financial services/capital markets are one of the most dynamic sectors in today’s ever-evolving world. Investors who have been navigating the market for a significant period are well acquainted with the fact that achieving good returns involves some risks. An effective way to address the challenges of building a good equity investment portfolio is by turning to organizations that provide expert portfolio management services.

In this blog, we will explore the purpose of portfolio management services, the different types available, and some of the benefits of opting for these services. We will also become familiar with how portfolio management services work.

What Are Portfolio Management Services?

High net worth investors (HNI) and ultra-high net worth investors (UHNI) who aspire to delve deep into the market to gain maximum returns often look to leverage the expertise of licensed portfolio managers or agencies dedicated to serving the same purpose.

When it comes to investments through portfolio management services, the minimum investment amount is INR 50 lakhs. The large sums of money call for expert Portfolio Management Services (PMS). It is offered by reputable portfolio managers across the globe.

Types of Portfolio Management Services (PMS)

1. Discretionary Portfolio Management: With Discretionary Portfolio Management Services, all control over the portfolio and associated decisions is handed to the portfolio managers. It is up to them to devise the effective strategy in line with the investor’s requirements. The managers have the liberty to make investment decisions discreetly, without the approval of the investor.

2. Non-Discretionary Portfolio Management: Non-Discretionary Portfolio Management Services require the portfolio managers to provide investment ideas in line with the investor’s vision. The investors make the final decisions when choosing from the multiple ideas suggested to them. The Portfolio Manager cannot make any investment decisions of their own accord.

3. Advisory Services: The Portfolio Manager here solely acts as an advisor to the client and is not responsible for the investment/divestment of securities and/or administrative activities on the client's portfolio. It is the client that executes transactions based on the advice provided by the portfolio manager. Such services will be in accordance of the guidance and directives issued by the regulatory authrorities and the client.

Is Portfolio Management Services worth it?

The answer is a resounding yes. With years of experience, portfolio managers or agencies provide tailored investment solutions. They are professionals who specialize in determining key business objectives, drawing the right insights, and providing solutions based on intensive research ensuring that every promising opportunity that presents itself is seized.

Multiple factors are taken into consideration before making any investment decision. Let’s take a closer look at some of the key benefits of portfolio management services that vouch for the convenience and efficacy that bring to investors who aspire to scale their returns.

Read more here - https://www.alchemycapital.com/blogs/get-familiar-with-portfolio-management-services.aspx