Concept of banking companies and investments

LONG-ONLY ABSOLUTE RETURN FUND

A Long-Only Fund or Long-Only Absolute Return Fund invests exclusively in long positions, searches out undervalued stocks, and eliminates uncertainty and downside risk by retaining capital, fixed income, and other basic asset groups. Options, futures, and other derivatives can be used by this fund to minimise or "hedge" risk and gain exposure to underlying physical investments, but not for speculative purposes.

Investment funds that aren't hedge funds may also have exposure. Long-Only ARFs, in contrast to conventional funds that seek relative returns, follow strategies that they believe would result in positive or "true" returns independent of any index benchmark under all market conditions.

 

FEATURES OF LONG ONLY FUNDS

The aim is to achieve continuous positive returns regardless of market conditions.

Investing strategies with a wide range of options, including futures, but no speculation.

Invests in common or other Long-Only Absolute Return Funds only on rare occasions.

Using leverage sparingly.

Often open-ended and only available to a small group of interested institutional and retail investors.

 

BENEFITS

Management experience is responsible for a large part of the performance of Long-Only ARFs. Long-Only ARFs, like hedge funds, are skill-based, relying on the expertise of experienced experts to evaluate securities and markets. Long-Only ARF managers are able to select winning securities and generate substantial asset value by combining superior experience, insight, and sophisticated and creative techniques.

 

HISTORY OF INVESTMENT BANKING COMPANIES IN INDIA

Investment banking in India dates back to the 19th century, when European merchant banks first founded trading houses in the area. Since then, non-Indian foreign banks have controlled the country's investment and merchant banking activities.

The State Bank of India entered the merchant banking market in the 1970s by establishing the Bureau of Merchant Banking, and ICICI Securities became the first Indian financial institution to do so.

The number of merchant banks had increased to more than 30 by 1980. Commercial banks and other financial institutions expanded rapidly during this period of rapid growth in the financial services industry.

 

ASSOCIATION OF INVESTMENT BANKERS OF INDIA

The merchant banking industry began to take off in the 1990s, according to the Association of Investment Bankers of India (AIBI), with over 1,500 merchant bankers registering with the Securities and Exchange Board of India (SEBI).

The Association of Investment Bankers of India (AIBI) was formed to control and rule the new wave of banks that emerged, ensuring that members complied with banking regulations and that their activities were monitored.

AIBI's mission is to ensure that member institutions observe its ethical and legal practises, as well as to promote the investment banking industry in India and its members' business interests.