Registered Investment Adviser
Also written RIA · Registered Investment Adviser (RIA)
A professional licensed by SEBI under the 2013 regulations, paid fees by the investors who hire them, bound by a strict code of conduct, required to act in investors' best interests and to disclose conflicts of interest.
This one is not written up yet
The definition above is the short version. A full explanation — how it works, a worked example and the exam traps — is still being written. In the meantime the chapter below covers it in context.
Written up from the same chapter
- Alternative Investment FundA privately pooled investment vehicle registered with SEBI that raises money from select Indian or foreign investors under a defined investment policy — never from the public at large.
- CorrelationA measure of the strength and direction of the relationship between two variables, running from -1 to +1, and the single factor that determines how much risk diversification actually removes.
- Credit spreadThe extra yield a non-government borrower must pay over a government security of the same tenor — the market price of credit risk, quoted as an add-on over the risk-free rate.
- Differential Voting RightsEquity shares that carry less than one vote each, letting a company raise capital without diluting control — and letting an investor who does not want the vote buy the same economics at a discount.
- Fund of fundsAn AIF that invests in the units of other AIFs rather than directly in investee companies — buying diversification across managers and strategies, and paying two layers of fees for it.
- Government SecurityA tradeable debt instrument issued by the Central Government or a State Government — treated as free of default risk, and the benchmark against which other rupee interest rates are priced.
Where this is taught
- Series XIX-E · Chapter 2: Types of Investmentsintroduced here
- Series X-A · Chapter 7: Introduction to Investmentsintroduced here
- Series XIX-C · Chapter 2: Types of Investmentsintroduced here
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