Description
Taxmann Alternative Investment Funds Managers edition 2024 by An Educational Initiative of SEBI
This comprehensive guide discusses the intricacies of Alternative Investment Funds (AIFs) in India, offering:
Foundational understanding of the investment landscape
Alternative asset classes
Role and functions of key stakeholders within the AIF ecosystem
The key learning outcomes of the book are as follows:
Equip readers with a basic understanding of the diverse investment landscape and the nuances of alternative asset classes
Foster a deep comprehension of the key theories underpinning investment decisions and fund management
Enable thorough knowledge of managing AIFs, focusing on product suitability, ecosystem roles, fund governance, and strategic investment approaches
Enable the readers to understand the complex regulatory and taxation landscape affecting AIFs in India, promoting best practices in fund management and compliance
This book is designed for AIF Managers, investment team members, finance professionals, and anyone interested in deepening their understanding of alternative investment funds management in India.
The Present Publication is the December 2023 workbook version, published exclusively by Taxmann for NISM Certification Examination XIX-C | Alternative Investment Funds Managers, with the following noteworthy features:
[Foundation of Investment] Introduces the investment landscape, distinguishing between traditional and alternative investments, and elucidates the basics of portfolio theory
[AIF in India] Offers an in-depth analysis of AIFs in India, including their evolution, regulatory environment, and the suitability of various AIF products for portfolio diversification
[Fund Management] Discusses the critical role of investment managers and their teams in fund management duties, emphasising governance, conflict of interest management, and the importance of a robust governance structure
[Valuation and Performance] Explains valuation techniques, investment strategies, and the process of performance evaluation, including benchmarking policies
[Regulatory and Taxation Aspects] Covers the essential regulatory framework and taxation aspects relevant to AIFs in India, ensuring compliance and understanding of legal obligations
The detailed contents of the book are as follows:
Investment Landscape
Introduction to various investment types and their distinctions from speculation
Discussion on investment objectives and the process of estimating the required rate of return
Types of Investments
Comparison between traditional and alternative investments, including their types and roles in portfolio management
Examination of the channels for making investments and the historical growth of alternative investments
Concept of Informational Efficiency
Exploration of informational versus operational efficiency, efficient capital markets, and the Random Walk Theory
Analysis of the Efficient Market Hypotheses (EMH), market anomalies, and their implications on valuation and portfolio management
Introduction to Modern Portfolio Theory
Detailed framework for constructing portfolios, assumptions of the theory, and the definition of investor risk profiles
Discussion on expected rates of return, variance, portfolio optimisation, and the Efficient Frontier
Introduction to Capital Market Theory
Overview of Capital Market Theory, its assumptions, the Capital Market Line, and the diversification of risk
Insights into CAPM, empirical tests, and multi-factor models of risk and return
Alternative Investment Funds in India and its Suitability
Detailed analysis of the evolution, growth, and current market of AIFs in India
Comparison of AIFs with traditional investments and their role in portfolio diversification and risk management
Alternative Investment Fund Ecosystem
Comprehensive understanding of the concepts prevalent in the AIF industry
Alternative Investment Fund Structuring
Insights into the principle of 'Pooling', buy-out transactions, AIF constitution, and common fund structures
Fee Structure and Fund Performance
Examination of management fees, hurdle rate, high-water mark, types of risks, risk measures, and return measures in AIFs
Indices and Benchmarking
Detailed exploration of indices, their uses, methodologies, and performance benchmarking
Investment Strategies, Investment Process and Governance of Funds
Insight into investment strategies, deal sourcing, investor due diligence, and governance structures in AIFs
Funds Due Diligence | Investor Perspective
Comprehensive guide to fund due diligence, manager evaluation, and selection from an investor's perspective
Legal Documentation and Negotiations
Overview of essential legal documents and negotiations in the AIF landscape
Valuation
Detailed discussion on valuation basics, approaches, and techniques for AIF portfolio investments
Fund Monitoring, Reporting and Exit
Insights into the regulatory framework for fund monitoring, reporting, exit options, and liquidation schemes
Taxation
Detailed examination of taxation related to AIFs, including surcharge rates, GAAR, and other applicable taxes
Regulatory Framework
Comprehensive overview of the regulatory framework governing AIFs, including SEBI regulations and other related laws