PE Fund Guide & News

Private equity investing, largely attributed as “investing in securities through a negotiated process” is fast emerging as the alternative to investment in the institutional framework. Private equity calls for a specific and a specialized skill set which largely accounts as the diligence area for investor’s assessment of a manager. There has been a spurt in the spectrum of investors in private equity because of the need to rapidly include different types of investors to adhere to the long term commitments to the asset class. The commitments enable the investors to seek a level of geographical diversification in their private equity portfolios. The fundamental reason for investing in private equity funding is to improve the possibility of risk for investing in private equity offers an opportunity to generate higher absolute returns to the investor while also improving upon the portfolio diversification. Inflation results in an escalating focus on growth stocks. A...

-Affordability Quotient Investors don’t really need a huge amount to enter the real estate funds . They can start with a minimum fixed investment value and can go ahead with buying units on secondary market just after the funds are launched. It is in this way that the investors can participate in the income from the large-scale property development without having a need to invest in a big amount in the property itself. -Inflation Hedge The returns from real estate in India or anywhere depends largely on the rent as acquired from the tenants. There are some leases which have a scope for rent increment to be indexed to inflation.  In other cases of rent, a rent is increased whenever the lease expires and it needs to be renewed. Anyways income from real estate generally increases in an environment of inflation so that the investors can maintain their income from the returns. -Diversification Value Since the real estate returns have a relatively low de...