Series 136 – Launch of Our Category III Open-Ended Equity AIF: A New Chapter in Long-Term Wealth Creation

This week marks an important milestone for us as we successfully launch our Category III Alternative Investment Fund (AIF)—an open-ended, multi-cap equity strategy designed to deliver long-term capital appreciation with a strong emphasis on downside protection.
Notably, the fund carries no exit load, offering investors flexibility and liquidity for redemptions.

 

How This AIF Is Different from PMS

One of the key structural advantages of our AIF over traditional Portfolio Management Services (PMS) is tax efficiency.
In this AIF structure, capital gains tax is paid at the fund level. As a result, investors do not incur any capital gains tax at the time of redemption or sale of units, making it effectively tax-free at the client level.

Additionally, the fund can participate in IPOs as an anchor investor for select high-quality companies. This provides access to potential listing gains, which are often unavailable through conventional retail or PMS routes.

 

Seamless Access for NRI Investors, Including U.S.-Based NRIs

The structure ensures no double taxation and no TDS deduction enabling NRI participation, including U.S. NRIs, in this fund.

To simplify compliance, we will provide K-1 and K-3 statements (for applicable jurisdictions) at the end of each financial year, ensuring smooth U.S. tax reporting.
Importantly, the AIF is treated as a partnership for U.S. tax purposes, avoiding PFIC classification and ensuring full tax transparency.

 

Why Invest in India Now

India is entering what many believe could be its most powerful economic decade. The country is firmly on track to become a USD 5 trillion economy, supported by strong structural tailwinds such as urbanisation, financialisation, industrialisation, healthcare expansion, and digital infrastructure development.

Corporate earnings are at a clear inflection point, driven by government-led capex, PLI schemes, a young demographic profile, rising per capita income, and rapid formalisation of the economy.
Historically, similar phases of economic expansion in countries like the U.S. and China have resulted in substantial long-term equity wealth creation.

For NRIs, India offers a rare combination of high growth, improving governance, and deepening capital markets, making this an opportune time to participate in India’s growth journey.

 

Investment Philosophy and Portfolio Construction

The fund follows a multi-cap, growth-oriented strategy with a strong focus on downside protection. It’s built on a core belief: markets move in cycles, and portfolios should adapt accordingly.

Our flagship strategy, the All-Weather Fund, dynamically tilts exposure across sectors based on macro regimes, capital flows, and relative risk-reward, while remaining long-only.

 

Subscription Details

The fund follows a staggered subscription model, with subscription windows opening on a fortnightly basis.

 

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As always, we keep re-emphasising our SIP mode of investment. You can connect with your relationship manager to know more about our SIP Program.

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