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.

Asset Management Exam

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