Performance Overview of Indian Hedge Fund Industry

Proceedings of 2nd International Conference on Business, Management and Economics

Year: 2019

DOI:

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Performance Overview of Indian Hedge Fund Industry

Aditya Agarwal, Utkarsh Goel and Shailendra Kumar

 

ABSTRACT: 

This paper evaluates the performance of Indian hedge funds and hedge funds of North America, Latin America, Europe, Asia ex Japan, Japan and Global database for a period of 2000-2019. This paper also compares the performance of given hedge fund indexes with the major stock indexes of that region. The performance criteria have been annualized returns, annualized standard deviation and Sharpe ratio for different periods. The research shows that only Indian hedge funds have been lagging behind the equity market of the country, which raises question on the need of Indian hedge funds and the hefty fees charged by these funds. Fund level taxation is one of the biggest hindrances in the growth of Indian hedge funds industry, which is a big disadvantage to them as compared to mutual funds and equities in India.

Keywords: Hedge Funds, India, Investment, Financial Market, Performance .