HEDGE

FUNDS &
PENSION
PRESENTED TO : DR.TARIKA SINGH FUNDS
FINANCIAL MARKETS
& SERVICES
PRESENTED BY : ANSHUL GUPTA
KETAN TELANG
KRITAGYA SHARMA
SACHIN TYAGI
SURYA AGARWAL
 WHAT ARE PENSION FUNDS?

 Pension funds are financial tools that help you in accumulating funds for your post-
retirement years.
 By investing a certain amount regularly towards pension fund, we will build up a
considerable sum in a phase-by-phase manner.
 They generally have two stages–
• Accumulation stage: You pay a specific amount regularly until you retire.
• Vesting stage: Once you retire, you get a steady flow of income for life.
 WHERE DO PENSION FUNDS
INVEST?
 The main investment style of a pension fund is diversification and prudence.
Pension funds aim for portfolio diversification, allocating capital to different
investment instruments (stocks, bonds, derivatives, alternative investments, etc.)
 TYPES OF PENSION FUNDS IN
INDIA
 National Pension Scheme (NPS)

 Public Provident Fund (PPF)

 Employee Provident Fund (EPF)

 Annuity plans with life cover

OPEN VS. CLOSED PENSION FUNDS
 Open pension funds are custodians of at least one pension plan with no membership
restriction. Closed pension funds support pension plans that are only open to
specific employees.
 Closed pension funds can be further classified into:
• Single-employer pension funds
• Multi-employer pension funds
• Related member pension funds
• Individual pension funds
 WHAT ARE HEDGE FUNDS?
 A hedge fund is a form of alternative investment that pools capital from individual
or institutional investors to invest in varied assets, often relying on complex
techniques to build its portfolio and manage risk.

 Hedge funds can invest in anything from real estate to currencies and other
alternative assets; this is one of many ways in which hedge funds differ from
mutual funds, which normally only invest in stocks or bonds.

 The aim of all hedge funds is to maximize investor returns and eliminate risk,
regardless of whether the market is going up or down.
 WHAT DO HEDGE FUNDS INVEST
IN?
 Land, real estate, currencies, derivatives and other alternative assets – in short,
anything. The only thing limiting the scope of any hedge fund is its mandate.
 Hedge funds in India do not need to be necessarily registered with Securities and
Exchange Board of India (Sebi), our markets regulator or disclose their NAVs at the
end of the day. All other mutual funds are required to follow these regulatory
requirements.
 WHAT ARE THE TYPES OF HEDGE
FUNDS IN THE MARKET?
 Domestic hedge funds: Domestic hedge funds are open to only those investors that
are subject to the origin country’s taxation.

 Offshore hedge funds: An offshore hedge fund is established outside of your own
country, preferably in a low taxation country.

 Fund of funds: Fund of funds are basically mutual funds that invest in other hedge
mutual funds rather than the individual underlying securities.
 HEDGE MUTUAL FUNDS VS
MUTUAL FUNDS
S.NO. CATEGORY HEDGE FUND MUTUAL FUND
1 Regulatory No SEBI registration required or Disclosure of NAVs at the end of the
requirements disclosure of NAVs day is necessary Sebi registration is
mandatory

2 Investor category HNIs, banks, commercial firms, Any domestic investor

3 Underlying Equities, money market instruments, Equities, money market instruments,
securities currencies, real estate, derivatives, cash
convertible securities
4 Risk Very high Comparatively lower
5 Minimum ticket Rs 1 crore Not uniform but as low as Rs 500 in
size some funds
THANK YOU