Equity Intelligence gets SEBI nod for alternate investment fund

V Sajeev Kumar Kochi | Updated on January 12, 2018

Hopes to mop up ₹200-300 cr in the next two months

Portfolio managers Equity Intelligence has received SEBI licence to launch a Category-III Alternate Investment Fund (AIF), which is broadly the Indian equivalent of hedge funds abroad.

EQ India Fund will focus on turnaround stories and emerging opportunities from India’s fast-changing economic profile. AIF can invest in listed or unlisted companies and derivatives, said Porinju Veliyath, Managing Director & Portfolio Manager.

The company is targeting to collect ₹200-300 crore in the next two months under the new fund, he said, adding that it also provides the fund manager the freedom to pool funds and employ diverse investment strategies, use leverage, and subscribe to preferential allotments, institutional placements, etc. According to SEBI guidelines, the minimum investment under AIF is ₹1 crore.

Going forward, AIF will be a fancied medium for HNIs to invest in equities. In fact, it can grow much bigger than mutual funds, he said.

Meanwhile, the company has achieved the milestone of ₹1,000 crore assets under management. With a customer base of 1,350 investors, the company has delivered 32.76 per cent to investors for 14 years on an average, he said.

On the outlook of the economy, he said the future looks interesting and exciting as the Indian economy is steadily and surely undergoing transformational changes in its landscape.

Another noteworthy and significant trend the company envisages is rise in share of equity investment in total gross domestic savings. Despite being one of the highest savers in the world at around 32 per cent of the GDP, barely 1 per cent Indians are serious investors in equities. This is about to change, as equities will soon be the preferred asset class compared to gold, real estate and FDs, he added.

Published on June 20, 2017

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