Crisil launches a new benchmark investment vehicle for the wealthy

Crisil Research on Thursday launched a new “sub-category” level benchmark for the country’s alternative investment fund (AIF) industry. It will help provide a peer-to-peer comparison for AIFs belonging to seven sub-categories within the three main AIF categories: I, II and III.

AIFs are pooled investment vehicles just like mutual funds but for the wealthy and they have a minimum ticket size of Rs 1 crore.

In category I, there will be references for venture capital funds. In Category II, there will be four benchmarks, namely equity funds – unlisted, equity funds – listed and unlisted; real estate funds and debt funds. While the category III benchmarks are long-only equity funds and long-short equity funds.

“Sub-category level benchmarks will be useful to all stakeholders – investors, intermediaries and AIFs – as they provide a 360-degree view of the performance of a particular sub-category. These will help investors find the type of fund best suited to their investment objective, in addition to allowing intermediaries to focus on specific types of funds for their clients, and OFIs to compare their performance with a set of peers,” said Piyush Gupta, director. , Crisil Research.

Currently, equity funds (listed and unlisted) in category II have the largest asset size at Rs 49,500 crore, followed by long-only equity funds in category III (Rs 33,600 crore).

AIF benchmark data at sub-category level will be disclosed by Crisil on a semi-annual basis (based on end of September and March data), in accordance with guidelines prescribed by market regulator Sebi.

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