Investment Management Business Guide
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All 6 Documented Cases
SIF न्यूनतम निवेश सीमा का उल्लंघन - यूनिट फ्रीज़ और स्वचालित रिडेम्पशन
Estimated: ₹2,000–5,000 per investor per freeze event (tax cost + advisor fees); Fund houses: ₹50,000–2,00,000 annually (compliance staff, notice issuance, redemption processing for 50–100 breaching investors)SEBI's compliance monitoring for SIFs creates operational friction: investors face unit freezes for breaching ₹10 lakh thresholds; fund houses must issue 30-day notices; forced redemptions trigger tax events and investor churn. Manual tracking across multiple investment strategies per fund creates bottlenecks.
Soft Dollar व Commission Tracking में SEBI Disclosure Violations
₹50-200 lakh per penalty notice; estimated 40-80 hours/month in manual reconciliation labor (₹3-6 lakh annually); potential commission disallowance of 5-15% if soft dollar usage deemed inappropriate.Soft dollar arrangements in India—where AMCs direct brokerage commissions to pay for research and market data—require transparent disclosure to SEBI. Failure to track, reconcile, or disclose these arrangements accurately can result in regulatory warnings, penalty notices, and reputational damage. Manual processes create audit trails gaps, delayed vendor reconciliations, and mismatched commission records.
Unbilled Soft Dollar Services और Research Cost Recovery में छिपे हुए नुकसान
₹50-300 lakh annually per large AMC; 20-40% of soft dollar budget typically unreconciled; estimated ₹2-5 lakh per fund scheme annually in mis-allocated research costs.Soft dollar agreements specify research/data services funded via broker commissions. Without integrated tracking, invoices are delayed, duplicated, or incomplete. Services rendered are not matched to commission budgets, causing: (1) Over-billing by vendors, (2) Under-reporting of research costs in fund expense ratios, (3) Incorrect cost allocation across multiple fund schemes.
Soft Dollar Misuse और Commission Kick-Back Schemes में Hidden Financial Fraud
₹5-15 crore annually industry-wide in India; 10-25% of soft dollar budgets potentially misused; ₹1-5 crore per large AMC uncovered in forensic audits.Soft dollar arrangements can mask related-party transactions or vendor over-charging. Without real-time tracking, AMCs risk: (1) Paying inflated prices for research/data via soft dollars (e.g., ₹50 lakh for ₹20 lakh market data service), (2) Directing commissions to consulting firms owned by fund managers' relatives, (3) Unused research services that generate no investor benefit but consume soft dollar budgets.