BANGALORE, Feb. 25, 2020 /PRNewswire/ — Sensex logged its biggest single-day plunge in more than a decade after the Union Budget was announced, signalling a market reaction against the lack of increased stimulus and structural reform measures from the government. This was the benchmark’s biggest drop since 24 October 2008, when it had plummeted 1,070.63 points, and the fourth biggest fall overall. Amidst this time of increased volatility, the Indian fund landscape has averaged 5.5 percent yield over the last five months, while True Beacon AIF achieved 13 percent returns during the same period.
True Beacon, a CAT III AIF launched by Zerodha Co-Founders, is an “all-weather” AIF III which focuses on generating absolute returns for investors in all market conditions. The other hallmarks of the fund are that it does not charge management fees, and is completely open-ended, creating a liquid instrument at a time with liquidity is important for corporate treasuries and individual investors alike. The flagship fund has been welcomed by global and domestic institutional investors, family offices and UHNIs, contributing to an AUM growth of 30 percent month on month.
A recent study stated that the Indian hedge fund index had been the worst-performing hedge fund index for a major part of the 21st century, only outperforming the indexes during the financial crisis of 2008.
Commenting on the flagship fund’s performance, Nikhil Kamath added, “The True Beacon flagship fund is an all-weather fund. It runs a defensive strategy offered to investors in the face of mounting volatility and multifold economic concerns. Nikhil Kamath added, “India needs risk capital to go into productive assets. We are working towards creating client-aligned fund offerings that bring domestic and international capital into Indian equity markets. Our fund depends on a flat 10% performance fee which essentially means our success is matched by net client fund performance. We hope with True Beacon we can reinstate more accountability and transparency across the industry.”
