BlackRock's Indian mutual fund unit filed initial papers with the Securities and Exchange Board of India on Monday to launch a long/short stock fund.
DSP BlackRock Enhanced Equity Fund will invest at least 65 percent of its assets in long positions and up to 30 percent in shorts, according to the offer document filed with the regulator.
Long positions refer to buying and holding a security to sell at a higher price, while a short position means selling a security that one does not own, in hope of repurchasing it at a lower price and making a profit from the price differential.
The fund can also invest up to 35 percent of its assets in debt and money market instruments.
India's market regulator allowed short selling of shares by all institutional investors from April 21 last year but the strategy has not taken off yet.
DSP BlackRock Enhanced Equity Fund will invest at least 65 percent of its assets in long positions and up to 30 percent in shorts, according to the offer document filed with the regulator.
Long positions refer to buying and holding a security to sell at a higher price, while a short position means selling a security that one does not own, in hope of repurchasing it at a lower price and making a profit from the price differential.
The fund can also invest up to 35 percent of its assets in debt and money market instruments.
India's market regulator allowed short selling of shares by all institutional investors from April 21 last year but the strategy has not taken off yet.
No comments:
Post a Comment