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Time of India
24-07-2025
- Business
- Time of India
Monarch Fund House receives SEBI's in-principle approval to launch mutual fund business
Ahmedabad: Monarch Fund House, a venture of Monarch Networth Capital Ltd (MNCL), received in-principle approval from SEBI to sponsor and launch its mutual fund operations in India. Marking its foray into the Rs 50 lakh crore mutual fund industry, Monarch aims to build a futuristic AMC that stands out for its deep research capabilities, innovation-led offerings, and a digital-first distribution strategy, the company said in a statement. "We want to redefine fund investing by combining institutional-grade research, smart technology, and investor-centric design," said Vaibhav Shah, managing director, MNCL. You Can Also Check: Ahmedabad AQI | Weather in Ahmedabad | Bank Holidays in Ahmedabad | Public Holidays in Ahmedabad "With a strong presence across tier-1 to tier-4 towns, we will soon bring differentiated products tailored for evolving investor needs," he added.
Mint
19-07-2025
- Business
- Mint
Financial distributors turn to GIFT City for outbound funds. But few can enter.
Indian investment distributors are increasingly turning to GIFT City to tap into offshore fund offerings, as demand for global equity exposure surges among retail and high-net-worth investors. But here, too, the options are limited. With the traditional route of accessing international markets via domestic mutual funds largely shut due to regulatory caps, distributors—specifically, mutual fund distributors and independent financial advisers—are eyeing GIFT City-based outbound funds as a viable alternative. This bottleneck with the mutual fund route, however, has led to inflated premiums on older global exchange traded fund offerings, leaving investors with few options for diversification. GIFT City, with its status as an international finance hub and relaxed regulatory environment, is emerging as a workaround, which could potentially open a new route for Indian investors seeking to diversify their portfolios with global exposure. 'There is definitely an appetite from people wanting to invest globally," said Vaibhav Shah, head of products, business strategy and international business, at Mirae Asset Investment Managers (India). 'When we say we have an outbound fund, there is interest from distributors to sell the product, and from the investors to buy it." Mirae Asset Global Allocation Fund IFSC, which opened for subscription in April, invests in exchange traded funds tracking global indices in sectors such as artificial intelligence and semiconductors. Jay Kothari, senior vice-president and global head of international business at DSP Mutual Fund, said several clients already invest directly in outbound funds and distributors don't want to miss out on tapping into the growing demand for global equity investing. DSP Asset Managers opened India's first retail-focused offshore mutual fund at GIFT City in June. The Global Equity Fund allows Indian residents to invest as little as $5,000 (about ₹4.3 lakh) in a diversified basket of global stocks without relying on offshore brokerages, feeder funds, or cumbersome tax filings. A cumbersome alternative Indian investors had the option of investing in global equities through mutual funds. RBI, however, has a $7 billion limit on the total overseas investments of mutual funds, with a sub-limit of $1 billion ceiling specifically for foreign exchange traded funds. (Such ETFs own a collection of global stocks and trade on a stock exchange.) RBI's limits were breached around 3 years ago, effectively halting fresh mutual fund investments in global equities. Investments into fund-of-funds, too, have stopped. However, one can invest in ETFs, but since there are only six ETFs in India tracking global indices, this comes at a premium. Turning to GIFT City funds for investing in overseas equities requires routing money through the liberalised remittance scheme. RBI allows individuals to send up to $250,000 overseas via the LRS route, including for investing, without having to take its approval. According to Pramod Gubbi, co-founder at Marcellus Investment Managers, large distributors already have been taking the LRS route to invest in global market funds via jurisdictions like Singapore. 'Now, smaller IFAs and MFDs (independent financial advisers and mutual fund distributors) are also exploring this space since global diversification is essential for all investors. Earlier, smaller players accessed global exposure through mutual funds, but with the overseas limit now capped, they are turning to GIFT City," Gubbi said. This, however, poses certain challenges. 'Investors remitting funds via LRS face a 20% tax collected at source, which, although claimable as advance tax, can act as a psychological burden for many," said Shah of Mirae Asset Investment Managers. Gubbi added that the LRS process is still somewhat cumbersome as not many banks offer fully digital options. Not a proven model Investors have the option of tapping GIFT City alternative investment funds (AIFs) to buy global stocks. But the minimum ticket size to invest in these AIFs is $150,000 (about ₹1.3 crore), making it prohibitive for most retail investors. There is no minimum investment size specified for GIFT City retail outbound funds, but currently there is only one such investment vehicle—DSP Asset Managers's Global Equity Fund. As of 31 March, GIFT City had 135 category III AIFs, as per the International Financial Services Centres Authority's quarterly bulletin. IFSCA, based in GIFT City, is India's unified regulator for international financial services. Kartik Sankaran, founder of Fiscal Fitness, a registered distributor, noted the growing interest in GIFT City outbound funds, but said if the mutual fund route opens up again, investors could return to a route that's already tried and tested. 'Most GIFT City funds are feeder structures that invest into other offshore funds, raising concerns about a fund manager's direct capability in researching and managing global equities," Sankaran said.
Mint
18-07-2025
- Business
- Mint
Mirae Asset ELSS Tax Saver Fund: Strong 5-year CAGR of 18.70% — Should you bet on it?
The Mirae Asset ELSS Tax Saver Fund is a popular investment option among investors aspiring to save tax and create wealth on a long term basis. This Equity Linked Savings Scheme (ELSS) comes with a three-year lock-in period and Section 80C benefits of up to ₹ 1.5 lakh annually. Vaibhav Shah, Head – Products, Business Strategy & International Business, Mirae Asset Investment Managers (India), says, "For individuals filing taxes under the old regime, investing in ELSS (Equity Linked Savings Scheme) funds can offer tax savings of up to ₹ 46,800 per year on investments up to ₹ 1.5 lakh, depending on their tax slab.' He further added, 'Beyond tax benefits, ELSS funds also encourage disciplined investing due to their mandatory 3-year lock-in period, which helps investors avoid impulsive decisions during market fluctuations. Thus, for long-term investments, ELSS makes much more sense." As of July 2025, the Mirae Asset ELSS Tax Saver Fund (Direct-Growth) has delivered strong and consistent returns timeframes, making it a reliable performer in the ELSS category. It has showcased good performance over the years and looks primed to continue on the same trajectory. Period Return (% CAGR) 1 year 21.06% 3 years 17.48% 5 years 18.72% Since inception 17.83% Note: The returns discussed above are illustrative in nature. For complete details of the fund and its performance refer to the website of Mirae Asset. It is important to note that the 5-year CAGR of 18.72% stands out, outperforming many peer ELSS fund schemes. Furthermore, despite market fluctuations due to the ongoing geo-political issues due to the tariffs and wars i.e., Russia-Ukraine war and other disputes the fund has continued to deliver resilient growth potential. Investments done in this fund qualify for tax deductions under Section 80C of the Income Tax Act. This deduction is permitted up to ₹ 1.5 lakh annually. It also has the shortest lock in period among tax saving instruments, just 3 years. Further, this lock-in is implemented on such funds to allow them to compound wealth, as it is common knowledge that wealth in equity markets is only made on compounding. This makes this ELSS scheme tax efficient along with being relatively liquid in comparison with other tax saving schemes such as NSC and PPF. The fund focuses on maintaining a well balanced portfolio spread across large-cap, mid-cap and small-cap stocks. The top sectoral allocations include financials, consumer goods, technology and chemicals. This diversification permits in reducing risk while capturing opportunities across different market capitalisations and sectors. This is another extremely crucial metric associated with this fund, it is the expense ratio. For direct plans, the expense ratio is just 0.56%, one of the lowest in the entire ELSS category. This simply means more of your invested money works towards creation of wealth and generating returns instead of being eroded by fund management fees and charges. Hence, as a general rule you should invest in only those funds that have low expense ratios. Given the lock-in period and equity exposure, this fund is appropriate for investors who have a long term vision. The holding period preferably should be 5 years or more. If you stay invested beyond the 3-year lock-in period then the compounding benefits can significantly boost your overall corpus. Hence, the Mirae Asset ELSS Tax Saver Fund provides a mix of tax saving, disciplined investing, and strong long term returns. Still, as it is an equity oriented investment product, investors should be completely aware of and prepared for short term volatility. That is why you should always align such investments with your financial goals, long term targets and risk taking appetite. Disclaimer: Mutual Fund investments are subject to market risks. Read all scheme-related documents carefully before investing.
Mint
16-06-2025
- Business
- Mint
GIFT City is changing how—and where—Indians invest
A quiet transformation is under way in Gujarat's GIFT City. The International Financial Services Centre (IFSC), pitched as India's answer to Singapore and Dubai, is steadily attracting high-net-worth individuals (HNIs), non-resident Indians (NRIs), and global asset managers looking for regulatory ease and tax efficiency, without leaving Indian shores. The pitch is simple: seamless capital flows, dollar-denominated investments, and a regulatory architecture that mirrors international standards. For investors seeking global diversification, and for Indian fund houses eyeing inbound capital, GIFT City is emerging as a credible financial gateway. Read this | New funds surge in GIFT City, but old money stays offshore 'GIFT City is a bold vision to position India as a global financial hub," says Vaibhav Shah, Head - Products, Business Strategy & International Business at Mirae Asset Investment Managers (India). 'It offers a seamless, tax-efficient, and regulatorily robust platform for capital flows—both inbound and outbound." What's on offer For NRIs, one of the biggest advantages is simplified compliance—there is no tax or tax deduction at source (TDS), and investments are maintained in US dollar. While the underlying assets may be in Indian rupee, the scale of alternative investment funds (AIFs) enables better negotiation on fees. Resident HNIs, meanwhile, benefit from access to global diversification through Overseas Portfolio Investment (OPI) under the Liberalised Remittance Scheme (LRS). While LRS limits annual remittances to $250,000 (approximately ₹2 crore), there is no mandatory minimum investment size for GIFT City funds—except what each fund may prescribe. Shah adds, 'It's a dynamic ecosystem designed to connect India's financial ambitions with global opportunities, offering a streamlined, world-class platform for investing in India's growth or tapping international markets with Indian expertise." Who can invest—and what's live so far? As of March, there were 229 registered funds managed by 162 Fund Management Entities in GIFT City. Category III AIFs, focused on listed markets and hedge strategies, lead with 135 funds. Category II AIFs, often used for private credit and structured investments, are growing steadily. Category I remains a niche segment, typically used for social impact or early-stage ventures. Typical entry points for investors begin at around $150,000. However, the threshold can be lower for accredited investors, depending on the fund. For retail mutual funds, there is technically no minimum, though in practice it is expected to be around $5,000. As per Securities and Exchange Board of India (Sebi), individuals qualify as accredited investors if they earn at least ₹2 crore annually, or have a net worth of ₹7.5 crore with at least ₹3.75 crore in financial assets. A third route applies to those with an annual income of ₹1 crore and a net worth of ₹5 crore, of which at least ₹2.5 crore must be in financial assets. For retail mutual funds, there is technically no minimum investment, although in practice, most require at least $5,000 to participate. Read this | Low-ticket Gift City funds are almost here. But what holds them back? Inbound capital currently makes up over 85% of flows, underscoring GIFT City's appeal to foreign investors. But outbound interest is rising as Indian investors seek international diversification. Investor participation and average investment sizes vary widely across categories. Category I and II AIFs have raised $10.22 billion from 1,025 investors, averaging nearly $10 million per investor. Category III AIFs have mobilized $5.32 billion from 1,508 investors, with an average ticket size of $3.5 million. Venture Capital (VC) schemes have seen smaller inflows, raising $201 million from 469 investors—an average of about $430,000 each. Overall, funds based in GIFT IFSC had invested $8.08 billion by March 2025. This includes $4.52 billion from Category I and II AIFs, $3.52 billion from Category III AIFs, and $42.77 million from VC schemes. Commitments raised have surged from $8.41 billion in March 2024 to $15.74 billion a year later—an impressive 87% year-on-year jump, per IFSCA data. 'We launched our GIFT City fund only this February. Our PMS offering there has doubled in AUM over the last one year," said Pramod Gubbi, Co-Founder at Marcellus Investment Managers. GIFT City is fast becoming a compelling jurisdiction for both inbound investments from foreign and NRI investors, and outbound allocations by Indian residents—driven by regulatory clarity and tax incentives for asset and wealth managers, Gubbi added. Easier onboarding, flexible distribution Know Your Customer (KYC) norms have been aligned with global practices, Shah highlighted. For outbound funds, Indian asset managers can use existing KYC registries like CVL KYC. For inbound investors, documents such as a passport and address proof are sufficient. In-person verification can be completed by overseas professionals like lawyers or bankers. Distributors can register with the International Financial Services Centres Authority (IFSCA), although even those who aren't formally registered may still earn referral fees. Unlike in India's domestic mutual fund market, there's no cap on commissions. Retail funds face regulatory hurdles Retail offerings from Indian asset managers are still limited. 'Retail funds in GIFT City are still taking shape and require the need for greater investor awareness," says Shah. However, he remains optimistic, pointing to ongoing efforts by both regulators and asset managers to widen access and participation. One key bottleneck for the launch of retail mutual funds is regulatory clearance in other jurisdictions. For example, if Indian fund houses want to tap into the NRI retail investor base in the US, they may need to register with the Securities and Exchange Commission, or equivalent bodies in other countries. This cross-border compliance can be complex and time-consuming Currency management and infrastructure gaps To reduce transaction costs, many fund houses have partnered with IFSC-based banks for competitive forex services. However, features like Systematic Investment Plans (SIPs) and Systematic Transfer Plans (STPs) are still under development. While investors can open dollar-denominated accounts within the zone, automated investment tools are not yet functional. Read this | Gift City sovereign green bonds face currency hurdle 'Currently, SIPs and STPs are not operational in GIFT City accounts or wallets," Shah says. A platform still evolving Despite these gaps, fund houses remain bullish on the city's prospects. With a growing number of registered funds, rising foreign interest, and supportive regulation, GIFT City is positioning itself as a credible alternative to traditional global financial centres. 'Operating under global standards, GIFT City empowers Indian businesses and investors to compete internationally, attract foreign capital, and foster innovation," Shah says. But how quickly this potential translates into meaningful retail participation will depend on how soon the infrastructure, distribution, and regulatory bridges are fully in place.
Business Mayor
22-04-2025
- Business
- Business Mayor
Mirae Asset Investment Managers (India) launches Mirae Asset Global Allocation Fund at Gift City
Mirae Asset Investment Managers (India) IFSC branch has launched Mirae Asset Global Allocation Fund IFSC, a Category III Alternative Investment Fund (AIF) close-ended restricted scheme (non-retail) under the IFSCA (International Financial Services Centers Authority) Fund Management Regulations. The fund will open for subscription on April 21. Positioned as an outbound fund, this offering is designed to seek long-term capital appreciation for investors by potentially investing in a diversified portfolio of global equity exchange traded funds (ETFs) based on broad market indices and emerging themes. Also Read | MF Tracker: This largest midcap mutual fund outshines across horizons. Will the streak continue? Resident individual investors can invest through the Liberalized Remittance Scheme (LRS) upto a limit of USD 250,000 while family offices and institutions can invest through the Overseas Portfolio Investment (OPI) route upto a limit of 50% of their net worth. Located at Gift City, India's premier international financial services hub, the Mirae Asset Global Allocation Fund IFSC targets a corpus of USD 200 million, with an additional green shoe option of USD 200 million. It is exclusively available to accredited investors or those committing a minimum subscription of above USD 151,000 with a cap of 1,000 investors as per IFSCA regulations. The fund's base currency is USD, and it will be managed by Mirae Asset Investment Managers (India) Pvt. Ltd. IFSC Branch. Mirae Asset Global Allocation Fund aims to pursue opportunities in global markets by allocating 90 to 100% of its net asset value (NAV) to global ETFs across various jurisdictions, focusing on developed markets (US and China Markets), and key emerging themes (AI, Semiconductor).'Our latest offering is designed to provide investors, (predominantly resident investors) an avenue to take exposure in global markets and promising themes (AI, Semiconductor) through GIFT City investing route. Investors can invest in these funds within the LRS limits of 250K per person per financial year,' said Vaibhav Shah, Head of Products, Business Strategy & International Business, Mirae Asset Investment Managers (India).Also Read | 78% smallcap mutual funds outperform their benchmarks in one year. Have you invested in any for your portfolio? Read More Australian Dollar Primed to Benefit on USD Capitulation 'We have seen that by spreading investments across global markets and themes, investors are able to generate better risk adjusted returns and diversify their investments beyond the home country. We would like to leverage our expertise and global presence to create a curated bucket of Global ETFs which can create long term capital appreciation for investors,' he added. According to the fund house, the fund aims to reduce single-country risk by spreading investments across developed and emerging markets, access to innovative sectors like AI, semiconductors etc which may drive future growth, and get potential benefits from the historical INR depreciation against USD, which could enhance returns for USD-denominated assets. READ SOURCE businessmayor April 21, 2025
