Important Points for IC 99 - Asset Management Exam
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IRDA has not yet allowed so far the insurance companies to invest in Hedge Funds.
Hedge funds (as an asset class) use various strategies like leverage, hedging and macroeconomic bets on commodities, currencies, and interest rates.
A private equity fund is an unregistered investment vehicle. Private equity fund pools money to invest. Private equity funds concentrate their investments in unregistered and typically illiquid securities.
Private equity investors typically commit to invest a certain amount of money with the fund over the life of the fund, and make their contributions in response to "capital calls" from the funds general partner.
The typical venture capital investment occurs after a seed funding round as the first round of institutional capital to fund growth in the anticipation of generating a return through an eventual exit event, such as an IPO.