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Mirae Asset Investment Managers (India) has big plans for the GIFT (Gujarat International Finance Tech) City in Gujarat.
The asset manager’s IFSC branch had recently launched a global allocation fund, allowing Indian investors to gain exposure to global markets through the Category III Alternative Investment Fund (AIF). It also has plans to have another 7-8 funds via Gift City over the next one year.
Positioned as an outbound fund, this fund will invest in a diversified portfolio of global equity exchange traded funds (ETFs) based on broad market indices and emerging themes.
Indian investors previously had the option to invest in global markets via international funds offered by several asset management companies. However, the limit for overseas investments of mutual funds was capped at $7 billion—which has long been reached. So within the industry, there are very few international funds at the moment that allow fresh investments that are also likely to remain so, until the Reserve Bank revises that limit.
That’s where funds launched through GIFT City (like Mirae’s Global Allocation Fund) have an advantage.
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Here, resident individual investors can invest through the Liberalised Remittance Scheme (LRS) upto a limit of $250,000, while family offices and institutions can invest though the overseas portfolio investment route upto a limit of 50 per cent of their net worth.
Mirae is targeting a corpus of $200 million in this fund. It must be noted, however, that this is a non-retail scheme—it is available to accredited investors or those committing a minimum subscription of above $151,000 with a cap of 1,000 investors, as per IFSCA regulations.
“All of us know that 95 per cent of the opportunities are outside India. India is just 5 per cent of the world’s market cap. But you pick any investor in India, more than 95 per cent of his wealth is in India. Gift city is giving that route for a resident Indian to access global markets in a very easy, seamless manner,” pointed out Vaibhav Shah, the head of products, business strategy and international business at Mirae Asset Investment Managers (India).
Mirae also plans to launch a retail mutual fund scheme through GIFT City as well, he said.
The asset manager also has its India Equity Allocation Fund in the IFSC, that is again a Category III AIF, where accredited investors or those investing above $150,000 (non-resident Indians, foreign investors or foreign corporates and the like) can get exposure to the Indian markets.
This fund invests in units of mutual funds registered with SEBI in India. The advantage NRIs get with this is that they get access to Indian mutual funds, without tax filing or any tax incidence, since it was done through GIFT City. Also KYC processes are easier, since they do not require an Aadhar card or PAN card.
The fund house has been able to raise about $30 million in that product since its launch in July 2024.
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“The idea is at least in the next 6-12 months to try and fill products across all the structures and try and raise money from foreign nationals, NRIs, resident investors and all, its investing outside India or into India,” explains Vaibhav Shah.
Mirae used to operate a $100 million Luxembourg-based fund. In October 2023, it moved the fund management to GIFT City. That fund has now grown to around $300 million. The company plans to move more such funds from other jurisdictions.
“We have few more global funds and mandates, which we are managing say from Korea, Hong Kong and other markets. We hope to bring some of those funds to the GIFT City,” Shah added.
The fund house on Thursday launched a Platinum SIF by Marie Asset Mutual Fund, a focused brand for specialised investment funds. Earlier this year, markets regulator SEBI had introduced a framework for SIFs, aiming to bridge the gap between mutual funds and portfolio management services.
“With Platinum, we are laying the foundation for a new phase in our product journey; one that may allow us to explore sharper, strategy-led approaches while continuing to prioritise investor clarity and transparency,” said Swarup Mohanty, vice chairman and CEO of Mirae Asset AMC.
There are seven investment strategies that are allowed under SIFs and Mirae plans to be among the first to launch an equity SIF.
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