What are the rules on starting portfolio management services?

What are the rules on starting portfolio management or Hedge Fund?

Does anyone know what rules there are on starting a Portfolio management service or Hedge Fund?
Permissions, formalities, legalities, obligations and anything else connected with PMS/hedge funds.
How do I go about it?

http://www.sebi.gov.in/faq/faqpms.html

The laws and regulations are such that individuals cannot (and indeed should not) start PMS- it is mean for institutions only.

Thanks for the link.
The old story stays the same, "Kill merit at any cost wherever it may be found".
For the record, my yearly return is more than double the best mutual fund for the same time period.

A one year return doesn't say a lot, all systems go phut at some point. :rofl::rofl:
How did you fare in 2008?

It is not a system, more a long term quantitative method based on a working model.
I didn't have it in 2008, started trading it from March 2010.
I have tested it from 1995 till 2005 on the US market, and from 2005 till 2010 on the Indian market, and it has beaten the index every single year, except 2002 and 2008, with yearly returns ranging from +40% to +430%.
2008 was a bad year with a return of -35%, but most mutual funds lost more than 50-80% at that time.
Returns following bear years are much bigger, 2009 returns were above 400%.

You must be a very rich man by now then

Going by the figures, I have a pretty good idea what method it is.
Assuming you started with a decent amount of capital, just continue to trade it for a few years and enjoy the money.
Personally, I don't have that much of patience.

@ Pasha. @ Taurus, sorry for my interjection, but the way you guys are talking; you both appear to me as the kung fu masters discussing the mystical philosophies and techniques from a time and place in future that it's hard for me to visualize myself ever reaching there.

Could you guys throw more light onto the art of trading, the way you have pursued it and found it beneficial.

Just to introduce, I am a noob (newbie or a beginner +), who is lurking around in these corridors to gather some pearls of wisdom and if possible get taken under some accomplished master's wings. Having said that,good friendship is something i believe can cut the cost of an arduous life journey to small EMI's and has a potential of making any pain worth taking. So any pointers would be well appreciated.

Thanks in advance.
Bornfree

Hi Bornfree,
I'm no master, just another guy who thinks logically.
Suggest you start looking at system/strategy sites,
http://www.collective2.com/cgi-perl/system/sysreports.mpl?report_type=popular
understand what they are doing and with time you should be able to recognize what type of strategy makes money and when.
There are only 3-4 types of systems with minor variations on them, but the variations are the key.
A little deductive reasoning goes a long way.
I don't want to analyse his system on his thread, so I'll leave it at that.