Sebi Gives License To Old Bridge Capital Management For Mutual Fund Business

Old Bridge Capital Management ( OBCM) has announced that it received the final approval from the Securities and Exchange Board of India (SEBI) to commence its mutual fund operations under Old Bridge Mutual Fund.

Kenneth Andrade, Founder of OBCM said "We are delighted to receive this license to commence operations for Old Bridge Mutual Fund and will be launching our maiden actively managed equity scheme."

Andrade added, "As we move forward with our newly acquired license, we remain committed to providing investors with long-term investment solutions on its mutual funds platform as well."

Old Bridge Capital Management Private Limited ("the Company") was incorporated in December 2015. The Company is registered with SEBI as a Portfolio Manager vide dated June 22, 2016. In addition, the Company is also an Investment Manager and Sponsor to a SEBI-registered Category III Alternative Investment Fund named "Old Bridge Capital AIF" since September 29, 2017. The Company is also SEC Registered Investment Advisor (RIA) since March 8 2019.

What are mutual funds?

A mutual fund is a pool of money managed by a professional Fund Manager.

As per the AMFI website, a mutual funds is a trust that collects money from several investors who share a common investment objective and invests the same in equities, bonds, money market instruments and/or other securities. And the income/gains generated from this collective investment are distributed proportionately amongst the investors after deducting applicable expenses and levies, by calculating a scheme's "Net Asset Value" or NAV. Simply put, the money pooled in by a large number of investors is what makes up a Mutual Fund.

Further, AMFI explained that Mutual funds are ideal for investors who either lack large sums for investment or for those who neither have the inclination nor the time to research the market, yet want to grow their wealth. The money collected in mutual funds is invested by professional fund managers in line with the scheme's stated objective. In return, the fund house charges a small fee which is deducted from the investment. The fees charged by mutual funds are regulated and are subject to certain limits specified by the Securities and Exchange Board of India (SEBI).