In line with the vision of Prime Minister of India Mr. Narendra Modi, The Finance Minister, announced creation of a Fund of Funds for Micro, Small and Medium Enterprises (MSMEs) under the Atmanirbhar Bharat package on the 13th May 2020, to address shortage of funds being faced by MSMEs in securing growth capital.
Consequently, NSIC Venture Capital Fund Limited (NVCFL), a 100% subsidiary of The National Small Industries Corporation Limited (“NSIC”), a Mini-Ratna Corporation of Government of India under the Ministry of Micro, Small and Medium Enterprises (MoMSME), Government of India, was incorporated.
The ‘Self Reliant India (SRI) Fund’ , with an overall fund corpus of INR.10,006 Cr, is organized as the first scheme of NVCFL. NVCFL is registered with the Securities and Exchange Board of India (“SEBI”) as a Category II Alternative Investment Fund under the provisions of the SEBI (Alternative Investment Fund) Regulations, 2012 (“AIF Regulations”). SRI Fund has been sponsored by NSIC.
SRI Fund will employ a ‘Funds-of-Fund’ investment strategy wherein the Fund shall invest in SEBI registered Category I and Category II Alternative Investment Funds (“Daughter Funds”), which shall in turn invest in MSMEs. The Daughter Funds shall invest at least 5 times the amount of capital contribution received from SRI Fund (net of fees and expenses) in MSMEs, covered under the Micro, Small & Medium Enterprises Development Act, 2006.
FAQs
SBICAP Ventures Limited (SVL) is a leading alternative asset management company with assets under management of around INR 32,500 Cr (US$ 3.9 bn). We manage funds that are diverse in nature, cutting across various sectors.
Who is the investment manager of Sri Fund? ›
The overall Fund Corpus is INR 10,006 crore. Through a Quality and Cost Based Selection process, NVCFL has appointed SBICAP Ventures Ltd (SVL), an Asset Management Company, as the Investment Manager of the Fund.
What is the full form of Sri fund? ›
Understanding Socially Responsible Investment (SRI)
Mutual funds and ETFs provide an added advantage in that investors can gain exposure to multiple companies across many sectors with a single investment.
What is a venture capital fund? ›
What are Venture Capital Funds? Venture capital funds are pooled investment funds that manage the money of investors who seek private equity stakes in startups and small- to medium-sized enterprises with strong growth potential. These investments are generally characterized as very high-risk/high-return opportunities.
Is Sbicap Securities safe? ›
SBI Securities is a trusted and reliable stock broker in India. It is a part of the SBI Group led by SBI Bank. State Bank of India (SBI) is the largest bank in India and serves more than a million customers. SBI Cap Securities is a SEBI registered broker member of BSE, NSE, MCX, NSDL and CDSL.
Is Sbicap Securities part of SBI? ›
Incorporated in 1986 as a wholly owned subsidiary of SBI, SBICAPS is one of the oldest investment banks in India, dominating the Indian investment banking landscape for over 35 years.
Is SRI a good investment? ›
SRI performance
The short answer is yes. A 2020 research analysis from asset-management firm Arabesque Partners found that 80% of the reviewed studies demonstrated that sustainability practices have a positive influence on investment performance.
Why invest in SRI funds? ›
Sustainable and Responsible Investment (“SRI”) also referred to as socially responsible investment or sustainable investing, represents an investment strategy that takes into account not only financial returns but also emphasizes positive environmental, social, and governance (ESG) outcomes.
Do SRI funds outperform the market? ›
In this article, we use a meta-analysis to examine the performance of socially responsible investing (SRI). We find that, on average, SRI neither outperforms nor underperforms the market portfolio. However, in line with modern portfolio theory, we find that global SRI portfolios outperform regional subportfolios.
What are the examples of SRI fund? ›
- iShares ESG Aware MSCI USA ETF (ESGU)
- iShares Global Clean Energy ETF (ICLN)
- Putnam Sustainable Leaders (PNOPX)
- TIAA-CREF Social Choice Equity (TICRX)
- Parnassus Mid Cap Fund (PARMX)
- iShares ESG Aware MSCI EAFE ETF (ESGD)
- Invesco Solar ETF (TAN)
The main finding from this body of work is that socially responsible investing does not result in lower investment returns.
Why is SRI important? ›
Key Takeaways. Socially Responsible Investing (SRI) offers investors an opportunity to invest with social, environmental, and ethical values in mind while potentially reaching competitive financial returns. Strategies for SRI include negative screening, positive screening, and impact investing.
Can anyone invest in a venture capital fund? ›
Most venture capital investments are restricted by law to accredited and institutional investors. This is because these funds invest in private equity stock, which is itself restricted from the public market.
How much money do you need to invest in venture capital? ›
Many venture capitalists will stick with investing in companies that operate in industries with which they are familiar. Their decisions will be based on deep-dive research. In order to activate this process and really make an impact, you will need between $1 million and $5 million.
How much money do you need to start a venture capital fund? ›
Fund sizes vary from a few million dollars ($5-$15 MM) for pre-seed investments to several hundred million for later-stage growth funds backed by institutional investors.
What is SBI venture capital? ›
SBI Ven Capital Pte. Ltd. is a leading venture capital & private equity firm that invests in financial services and technology sectors across Asia, inclusive of digital platforms and Web3-related investments.
What does corporate venture capital do? ›
What is Corporate Venturing? Corporate venturing – also known as corporate venture capital – is the practice of directly investing corporate funds into external startup companies. This is usually done by large companies who wish to invest small, but innovative, startup firms.
What is the main goal of corporate venture capital investments? ›
What are the objectives? The main objective of a corporate venture capital is to provide the parent company with new technologies and solutions that allow it to advance its strategy and position in the market. Contrary to venture capitals, corporate venture capitals not only pay attention to the economic return.
Is Sbicap Securities good for trading? ›
Tracking open positions is easy and it provides lot of good technical info, charts are also available. Much Improved I am using SBI Cap Sec online since Oct 2008 and SBI Securities App since October 2021. Lot of improvement across time. App is seamless.
