Hedge funds in india

I have 23 clients i am handling their trading accounts since 2018 now i cant handle any more accounts due to login/ logout… we know the story.

Now I think that i took their money under my firm and trade only in my company’s trading account.
Now i am bit confused about how to share profit to them

And mostly percentage system cant work here
Because if i took 24th client the calculation for profit sharing will be different

Any suggestions
@zerodhan
@nithin

You want to take the money as a loan and give them interest payment? Btw, if you are doing this as a company, you will end up having to get yourself an NBFC license.

The only legal way to go about doing what you are doing is by getting a PMS license or Cat 3 AIF (hedge funds). With cat3 you can do derivatives, but needs atleast Rs 1 crore/client and minimum Rs 20 crore to get started.

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What are the educational eligibility require to get that license? Do we need to have commerce/finance educational background?

Can go through this.

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No sir ji i am not borrowing money :moneybag:.
Although interest payments will become liability to my firm.
I am imagining a investment product that different from MFs (they simply buy and hold)
In this product we can bet against market basically trading but in pooled money. With others money who want to invest with us.

Hmm… not possible legally unless you do it through a Cat 3 AIF strucutre.

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