Referral Products

Alternative Investment Funds (AIF) pool money from sophisticated private investors. Funds collected are invested according to the investment policy of the AIF. Securities and Exchange Board of India’s mutual fund regulations doesn’t govern AIFs. However, AIF in India has its regulation, Regulation 2 (1) (b) of the Regulation Act, 2012 of SEBI. An AIF in India can be established as a company, Limited Liability Partnership (LLP), corporate body, or trust.

AIFs invest in investments that are not traditional (for example, equities or fixed income). Securities and Exchange Board of India classifies AIFs under three broad categories. Namely, Category I AIF, Category I AIF and Category III AIF. Each of the categories has different investments as per the broad definition of the category. Some of them are private equity, venture capital, hedge fund, and angel fund etc.

The minimum investments and fees for AIFs are higher than conventional investments. It is difficult to value an AIF as the asset classes that they invest in are pretty rare. AIFs are illiquid as these investments are open only to limited investors. The transaction costs for AIFs are lower than traditional investments as the turnover is lower. AIFs don’t share any information relating to the fund publicly. Also, AIFs have less opportunity to advertise to potential investors.

GIFT City Investment Services

Information about investment services available through GIFT City frameworks

GIFT City, located in Gujarat, is an International Financial Services Centre (IFSC) that provides a regulated framework for various financial activities. It brings together financial institutions, investment-related services, and other market participants within a designated financial ecosystem.

For Mutual Fund Distributors, GIFT City-related services can form part of the information shared with investors regarding available financial products and processes. The applicable product structure, documentation, eligibility requirements, and regulatory framework depend on the specific service and entity involved.

The service may involve understanding the relevant GIFT City framework, completing required documentation, and maintaining records associated with the applicable financial product or service.

Types of GIFT City Services

Investment Fund Services

These services relate to fund structures operating within the GIFT City financial framework and applicable regulatory requirements.

Fund Distribution Services

These services cover distribution-related activities connected with eligible investment products available through the applicable GIFT City framework.

Portfolio Management Services

Portfolio management structures may operate through eligible entities within the applicable GIFT City regulatory framework.

Alternative Investment Fund Services

These services relate to eligible alternative investment fund structures established under the applicable GIFT City framework.

Features

• Provides access to information about financial services operating within the GIFT City framework.
• Covers applicable documentation and process requirements associated with selected GIFT City services.
• Allows relevant product and service information to be maintained in an organised format.
• Supports clear presentation of applicable service structures, processes, and regulatory information.
• Provides a structured way to understand different financial services available through eligible GIFT City entities.

Benefits

• Provides a simple structure for accessing information about applicable GIFT City financial services.
• Helps keep service-related documents and information organised for easier reference and tracking.
• Makes applicable processes easier to understand through clearly presented service and documentation details.
• Provides a structured view of different service categories available within the applicable framework.
• Supports convenient access to relevant information through a centralised service presentation.

GIFT City provides a dedicated financial ecosystem with defined regulatory and operational frameworks for eligible financial activities. The applicable process, documentation, and product structure vary according to the service and regulatory requirements.

Information about applicable GIFT City services can be accessed through the available service details and related documentation.

For further information, please review the applicable service and regulatory documents.

Disclaimer: GIFT City services are subject to applicable laws, regulations, eligibility conditions, and documentation requirements. Product or service availability may vary based on the applicable regulatory framework. Mutual Fund Distribution services are provided in the capacity of a Mutual Fund Distributor. The information provided is for general informational purposes and does not constitute investment advice, recommendation, or assurance of any financial outcome. Investors are required to review the relevant offer documents, scheme-related documents, and applicable disclosures before making any investment decision.