In case you are interested, it is possible to compare its performance with various other Category III AIFs which share their data on PMS AIF World (Page 6 of the latest report) -
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donât think so, iâm sure all AIFs may also have fallen almost like nifty if they have cash exposureâŚnot sure if the hedge has enough protectionâŚ
The volatility scores and graphs provided by @gowtham4 convey lower drawdowns for True Beacon. This is based on figures provided, I am only speaking about True Beacon(not all AIF) looking at the figures provided.
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- Do you know whats the current AUM of TB?
- Hows Taxation works with AIF? Is it treated as business income or Normal income(profits) for the clients?
- How much is the fee structure by TB , i heard fee is only taken when in Profit?
- Are AIFs covered under Investment protection fund?In case of any fraud or mishap how are investors protected or is it the Risk presumed?
- They have 250+ clients and ~1000cr INR in their first AIF (TB One).
- True Beacon One is a Cat-III AIF which is a no-pass-through structure. This means that there is no direct tax liability in the hands of investors. All relevant taxes are deducted at the Fund level. Given the nature of their strategy, taxation is divided in two buckets - capital gains (for the long-only equity allocation) and business income (for the long-short derivative allocation).
- The performance fee of 10% is levied either at the end of every financial year or on redemption (whichever is earlier). It is charged only on gains, and is based on the high watermark principle. No other entry / exit fees , management fees or fixed fees or whatever.
- pls check this https://www.sebi.gov.in/sebi_data/attachdocs/1471519155273.pdf
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How flexible are the withdrawal options. Is there a SWP? Whatâs the exit load?
Too many questions, I know 
@vij if you see the chart itâs apparently having similar trend of nifty & looking at the performance figures cannot tell you what happened in marâ20. but, anyway we can only know if true beacon publishes all this on their site which right now i cannot find anything.
Actually you can. The drawdown is smaller in the graph. This is hindsight. You can figure out everything about the past in hindsight. This is not a matter of opinion. I am little perplexed, that you say you canât make out the drawdowns from the chart. If you doubt the veracity of the figure, thatâs a different matter.
- It is an open ended fund and hence can withdraw within 48 hr time period. No penalty or exit loads.
- SWP - Not sure of automated SWP, but since withdrawal is manual, you can place request whenever needed.
- SIP - You can top up with whatever amount required, though they recommend 20L INR.
- No charges except the 10% performance fee!
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come onâŚseems its in your nature to argue
@gowtham4
The chart you posted, are these performance and volatility figures posted in your account dashboard?
@nithin
With True Beacon, is the max loss for the client limited to the capital? This is purely a theoretical question. I ask since derivatives are involved.
@CoolBird
Talking about data. âDebate about dataâ and âarguments about opinionsâ are not the same thing.
@vij you should understand that in finance, itâs all black/white & any hindsight/assumption/speculation is pointless, so when iâm asking a question let the person owning data respond rather than you speculating âŚthis product may be good as hedge component may reduce drawdowns but then we have to know correct figuresâŚso let us not waste time in arguing.
Yes. Something both can agree with 
These are available for any prospects, you can contact TB and they will share these performance metrics.
The 35% is a natural hedge to the remaining 65% long shares. I dont think it is a naked fno strategy to lose more than capital deployed. There are AIF rules from SEBI for max exposure to fno. I read it some where.
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it doesnât tell you what happened in march & absolute drwdownsâŚpost which anyway nifty bounced back & created new highsâŚwe may not see such major crashes but atleast its important for investors to know drawdowns based on past before investing.
may be out of context, but it would be great to know how hedge funds are builtâŚkind of strategies involved etcâŚif anyone can kindly shareâŚ
I spoke to a person involved in a hedge fund & he said that these performance charts shared by all providers are pre-tax & subject to high tax 35-43% post which the net returns generated are at par or most cases below niftyâŚjust putting across what i heard so investors having doubts can verify.
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43% is the tax charged for ultra high net worth people , as long as you do not earn more than 3 crores a year , you shouldnât be worried about getting taxed at that slab.
cheers
Taxation for TB fund is not 100% treated as business income. It is only for the small hedge allocation, rest is treated as capital gains. So the tax overhang compared to an index fund will be present ofcourse(where it is all CG), but will be somewhat limited.