The hefty text on any investment memorandum runs through hundreds of pages, often frustrating the reader, and creating confusion. Even investment czar Warren Buffett once slammed the system, saying it was humanly impossible for an investor to go through 700 or 800 pages of regulatory compliance before taking an informed decision to invest in the securities market.
“It’s a perennial problem for an investor,” says Sandeep Shah, Senior Partner at NA Shah Associates, “There are too many compliance protocols for the investor to comprehend. And, eventually, it leads to utter confusion.”
The need for a change in the age-old system has finally pushed the Indian securities markets to take a big leap towards ease of doing investment. And, the markets regulator Securities and Exchange Board of India (Sebi) has geared up to introduce the concept of Accredited Investor (AI).
The Accredited Investors will be there alongside their existing peers like retail investors, high net-worth individuals (HNI) and institutional investors, who are classified based on their investment exposure and risk appetite.
An Accredited Investor represents a class of people who have an understanding of various financial products and the risks and returns associated with them and, therefore, they are able to take informed decisions regarding their investments. Although the concept of AI is about to debut in India, this well-established class of investors is active in various developed jurisdictions and are recognised by many securities and financial market regulators around the globe.
هذه القصة مأخوذة من طبعة April 2021 من Outlook Money.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة April 2021 من Outlook Money.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
Gold ETFs And FoFs
While Indians love to invest in physical gold, even mutual funds offer the option, but in paper format.
PLANNING TO BUY CHILD INSURANCE? THINK TWICE
Child insurance plans combine insurance and investment but often offer low returns due to high costs, making a combination of a term insurance cover and mutual fund a better option for securing your child’s higher education needs
How Do You Define Happiness?
Money does buy happiness, but after a while, the appeal fades. We talk about our relationship with money, but, maybe, it’s time to revisit our relationship with happiness
Avoid Crypto As It Is Highly Volatile
I am 22 years old and have recently started working. I want to invest a small portion of money in cryptocurrency. How should I go about it? Does it require a huge capital investment?
Invest Right, Don't Speculate
The lure of high returns and quick gains from equity tips, cryptocurencies, and equity F&O can be enticing. But remember, return of capital is more important than return on capital
The Wedding & Budget: Is Minimalist Trend The Right Knot For You?
Indian weddings are known for their pomp and grandeur, but minimalist weddings are also in vogue now. Dia Mirza was one such celebrity who went for a minimalist wedding. If you also want to keep things minimal on your big day, here’s how to do it
Here's How To Buy An ETF?
Mutual funds are the preferred choice for retail investors. However, they come at a cost and fund management risk, apart from other risks. A smarter alternative is to invest through ETFs.
How Passive Funds Help Diversify
Passive funds provide a simple way to invest in broad markets as well as in specific themes and sectors, making them ideal for an investor's satellite portfolio
The Rise Of Passive Funds
The popularity of passive funds among retail investors has risen post Covid, and fund houses are out with many variations of ETFs and index funds. Does this category present a new opportunity for investors?
Tax Reforms: What's In Store?
The government is working on reforming the existing Income-tax Act, 1961. The impending reforms have raised many questions in the minds of taxpayers. Will the old regime and deductions be done away with? Will it really simplify your life? What's the need for these reforms? We try to answer these and other questions regarding tax reforms