Description
Taxmann Alternative Investment Funds Managers edition 2025 by SEBI and NISM
Alternative Investment Funds Manager Workbook is a comprehensive reference developed by the National Institute of Securities Markets (NISM) to empower aspiring and existing professionals with robust knowledge of India's alternative investment funds (AIF) landscape. This workbook covers everything from basic investment concepts and modern portfolio theory to AIF structuring, governance, performance measurement, taxation, and regulatory compliance—making it a one-stop reference for readers who wish to excel in managing alternative investment funds.
This book is intended for the following audience:
Aspiring & Existing AIF Managers – Individuals responsible for structuring AIFs, designing investment strategies, and managing day-to-day operations
Investment Teams & Service Providers – Professionals such as analysts, fund administrators, custodians, valuers, and compliance officers requiring comprehensive AIF insights
Students & Job Aspirants – Those looking to enter or advance in the securities markets, seeking formal certification and a thorough grounding in AIF products
Financial Intermediaries & Advisors – Market participants, consultants, and advisors aiming to stay updated on AIF regulations and best practices
Finance Enthusiasts & Policy Makers – Anyone passionate about understanding the strategic, operational, and regulatory underpinnings of alternative investments in India
The Present Publication is the March 2025 Workbook Version. It is developed in collaboration with the Certification Team of NISM, Archit Lohia, Pratap Giri and Dr Rachana Baid and reviewed by Biharilal Deora and Taxmann's Editorial Board. NISM. It is published exclusively by Taxmann, with the following noteworthy features:
[Comprehensive Coverage of the AIF Ecosystem] Spans from basic investment concepts, portfolio theories, and global best practices to the specific categories and structuring of AIFs in India
[Regulatory & Governance Insights] Incorporates SEBI (AIF) Regulations, FEMA, PMLA, SEBI (PIT) Regulations, and more, ensuring professionals are well-equipped for compliance
[Structured Approach to Fund Management] Discusses fund due diligence, legal documentation, valuation, fund performance measurement, and risk management in a step-by-step manner
[In-depth Taxation Aspects] Explains taxation structures for all categories of AIFs and their investors, complete with examples and practical scenarios
[Practical Illustrations & Examination Readiness] Includes sample case studies, numerical examples, and practice questions resembling the actual certification exam format to reinforce learning
The coverage of the book is as follows:
Investment Foundations
Investment Landscape
Basics of investments vs. speculation, objectives, and estimating required rates of return
Traditional vs. Alternative Investments
Features, types, growth drivers, and the role of alternative asset classes in portfolio diversification
Market Efficiency & Portfolio Theories
Concept of Informational Efficiency
Understanding random walk theory, EMH, and implications for valuation
Modern Portfolio Theory & Capital Market Theory
Portfolio risk/return calculations, efficient frontier, CAPM, and multifactor models
AIF Structures & Suitability
Evolution of AIFs in India
Growth, enabling factors, and market comparison between different AIF categories
AIF Ecosystem
Roles of sponsors, trustees, managers, and other service providers
Fund Structuring
Pooling principles, trust and company structures, and comparative analysis of LLPs vs. corporate vehicles
Fee Structure & Performance
Management Fees & Other Expenses
Hurdle rates, high-water marks, and variations in fee models
Performance & Risk Metrics
Sharpe ratio, drawdown analysis, pre- and post-tax returns, and risk-adjusted measures
Indices & Benchmarking
Construction and usage of indices, stock-bond composite indices, and performance benchmarking for AIFs
Investment Strategies & Governance
Investment Process
Deal sourcing, due diligence, negotiating definitive agreements, co-investments, and best practices
Governance & Conflict Management
SEBI guidelines on governance, code of conduct for managers, and investor protection rights
Valuation & Reporting
Valuation Techniques
Equity, fixed-income, and business valuation approaches, NAV computation, and roles of third-party valuers
Monitoring & Reporting
Regulatory mandates for ongoing disclosures, exit strategies, secondary markets for AIF interests, and winding-up processes
Taxation & Regulatory Framework
Taxation of AIFs & Investors
Category-wise taxation rules, surcharge rates, set-off and carry-forward provisions, and GAAR
SEBI (AIF) Regulations & Related Laws
Eligibility, registration process, compliance obligations, FEMA guidelines, PMLA, and insider trading norms
The structure of the book is as follows:
Chapter-based Format – Seventeen meticulously arranged chapters addressing every facet of AIF management, from foundational concepts to advanced regulatory considerations
Conceptual Breakdowns & Summaries – Each chapter concludes with concise summaries and key takeaways, enabling quick revision
Examples & Sample Questions – Interspersed throughout to mirror the type of case-based and multiple-choice questions faced in the actual certification exam
Regulatory Extracts & References – Provides relevant sections and guidelines from SEBI, FEMA, PMLA, and other authorities for easy cross-reference
Practical Caselets & Exercises – Helps readers apply theoretical knowledge to realistic scenarios in valuation, fund structuring, compliance, and day-to-day fund operations