Wealth Company Launches US Dollar Fund in GIFT City

The Wealth Company has introduced a US-dollar-denominated Category III Alternative Investment Fund (AIF) at GIFT City. This new ‘fund of funds’ aims to streamline access for eligible overseas investors into India’s mutual fund and Exchange Traded Fund (ETF) market.

Managed by Wealth Company Asset Management’s IFSC branch, registered with the International Financial Services Centres Authority (IFSCA), the fund adopts a diverse investment approach. It targets a broad spectrum of Indian assets.

This ‘fund of funds’ strategy involves investing in a diverse portfolio of Indian assets. These include equity, fixed income, hybrid, and sectoral funds, alongside gold and silver Exchange Traded Funds. Asset selection for the underlying portfolio will consider historical performance and associated risk profiles.

Targeting Global Investors

The fund specifically caters to a range of sophisticated global investors seeking exposure to India. This includes global family offices, institutional allocators, accredited investors, and High Net Worth Individuals (HNI) and Ultra High Net Worth Individuals (UHNI) who are non-residents.

Exemptions and Exclusions

Investors in this new fund may gain significant advantages, including exemptions from SEBI FPI registration requirements. They could also be eligible for certain tax benefits on capital gains.

However, this investment opportunity carries clear restrictions on who can participate. It is not available to resident Indians, investors residing in the United States or Canada, or individuals from countries restricted by the Financial Action Task Force (FATF).