How start an AIF/Hedge Fund venture?

Hi there,

I hope you’re doing well. I have a burning question that’s been on my mind, and I was hoping to get your insights on it.

As a young individual deeply passionate about trading, I’ve spent over five+ years immersing myself in the world of finance. Now, at 22-23 years old, I’m contemplating the possibility of managing money for others, perhaps even starting my own AIF or hedge fund. However, I’m facing some uncertainties about how to approach this endeavor, particularly in terms of navigating SEBI regulations and attracting clients in the initial stages.

Could you advise me on how I should go about starting, considering my age and experience? What steps can I take to overcome regulatory hurdles and attract clients when I’m just beginning? Additionally, I’m curious about whether @nithin or Nikhil would be interested in providing funding or guidance for an early-stage fund like mine. Similar to investing in a start up but in a trading and fund management space?

Your expertise and insights would be immensely valuable to me as I embark on this journey. I appreciate any advice or suggestions you can offer.

Looking forward to hearing from you. @nithin

I have had similar thought like you when I was 20 .
Couple of things I found out .

  1. Either your dad already own a hedge fund / part of hedge fund operations, you are very highly unlikely to start a hedge fund business around that age.
  2. Study well , have enough+ qualifications under your belt, so that the major finance firms can no other options but to choose you in an interview. You earn experience and get to know new clients.

If you are qualified and have enough proof to attract and trust clients , I don’t think there nothing stopping you from making your own venture. The legal formalities are hefty due to NBFC criterion.

These are my personal findings. I am also like to get responses from the pros

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Check this post.

Yeah, starting a hedge fund is tough, and rightly so. The right way to do this is to get experience by working under somebody first, building a track record and network of people. And by track record, I mean at least a few years of it.

Not really.

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