@Sai_Krishnan this is incorrect, all hedge funds are subject to tax deduction at 42.7% before any returns are passed to investors…read this India's hedge funds threatened by higher taxes - The Economic Times
@vij as per my discussions there’s no capital gain tax for hedge funds as it’s pretaxed by the fund at 42.7%…you or @gowtham4 may want to verify with true beacon
this is probably correct logically ,
what’s correct or incorrect can only be answered by officials from the hedge find management co…from what i heard & from what’s stated in the article … what investors get is subject to TDS of 42.7%…again i’m just trying to dig deep to see if it can beat my strategy so that i can think of investing if its worth. also, lot of people invest without knowing all these finer details.
42.7% TDS is what I also read in few articles right now.
Pretty sure the returns showed by TB are pre-tax , but considering the uses of derivatives in terms of having a control of volatility of the P/L, I’d still go with it if I had 1 crore of idle cash.
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good…but note that derivative calls may go in losses depending on the risk/strategy
additional point what i heard (to be verified)…these funds invest 70-80% in nifty stocks like reliance, hdfcbank etc & sell futures, do arbitrage etc…
On a lighter note , Sundaram Alternate investments(Cat I AIF) has given me a return of more than 60% in absolute terms within 17 months. The portfolio is called ‘SELF’ . DO check it out if interested.
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@gowtham4 Makes sense, Thank you. So there is a tax overhang compared to index funds, but it is not a wide one.
@nithin whenever you have the time, if you can -
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With Mutual Funds, you can see them listed on CDSL/NSDL cas. Will True Beacon Fund show up there too?
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Is max loss for the client limited to the capital? I understand these are not naked positions, and the hedge is mostly strategic and defined, but is there the remotest of possibilities that clients could end up not only losing capital, but also owing money(due to a rare F&O bet gone wrong or fat finger) when invested in such hedge funds? Is that impossible?
On 2nd thoughts, I suppose it’s like asking, if I take a flight, could I die 
I have a partial answer here…
Once you are subscriber, you are sent this as a part of newsletter. I have hidden top holdings alone, not sure i can expose to public forum.
@gowtham4 nice data. I like it.
I think I phrased the question wrong. What I meant to ask is if the fund itself will show up in the nsdl/cdsl cas like how traditional MFs show up. Edited previous post accordingly.
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Okay, I dont think it will show in CAS, just verified it now 
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Can you tell what’s their take on long only portfolio , I mean do they frequently change it or in other words they hold stocks as short term trades or want to hold for fairly longer horizon.
Also I think maybe long only portfolio maybe part of some strategy like arbitrage of long -short portfolio.
And any reason they don’t have exposure in options.
I guess only the fund manager can answer these queries.
I was told & also from the article i had shared it seems entire fund is subject to 42.7%…anyway higher on deductions as AIFs also charge commissions, loads, management fee etc so not sure if it’s a good value proposition. We would know only after looking at net returns after deducting all expenses & tax…
based on what i heard…most / all AIFs do futures/arbitrage or pair trades & hedge to safeguard portfolio which is chosen from basket of nifty stocks.
Don’t know about other AIFs, but TB states they have zero standing-fee and 10% of profits - nothing on loss. There is surely a higher tax incidence, but the fee structure looks reasonable overall.
Yes. As of now, AIFs are new, we only have initial good results(< 2 years) and a good concept.
either you charge charge commissions, loads, management fee or 10% of profit…it may workout to be similar.
yes agree, new product & getting tested…as of now performances of all MFs/PMS/AIFs would look great with the huge market rally …real test is when markets don’t earn much
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All I know about True Beacon is that it is built on client alignment through a zero standing-fee model, and a conservative investment approach along with liquidity and tech-enabled transparency.