NRIs Gain Direct Access to India's Market via New Fund

The Wealth Company, a division of Pantomath Group, has introduced a novel fund structure within GIFT City IFSC specifically for eligible overseas investors, including non-resident Indians (NRIs). This new offering, named The Wealth Company IFSC fund of fund, is an open-ended Category III Alternative Investment fund denominated in US dollars.

The fund is designed to grant investors access to a managed portfolio focusing on India's mutual fund and exchange-traded fund (ETF) markets. It allows for diverse allocations across equity schemes, sector-specific strategies, debt funds, hybrid products, gold and silver ETFs, and index-based strategies. This structure aims to streamline investment for non-residents, bypassing the SEBI FPI registration process.

This initiative is particularly aimed at global family offices, institutional allocators, accredited investors, and high-net-worth non-residents. As an IFSC-based Category III AIF, it is expected to qualify as a "Specified Fund" under the Income-tax Act, 2025, potentially offering tax benefits. Eligible non-resident investors could see exemptions from Indian income tax on payouts and capital gains, subject to statutory requirements and fund compliance.

Furthermore, investors meeting specific conditions might also enjoy relaxations regarding PAN and Indian income-tax return filings. These benefits, including potential waivers on tax filing obligations for those with no other Indian taxable income, are contingent on the fund meeting "Specified Fund" criteria and individual investor circumstances. The fund anticipates interest from investors in regions like the UAE, Saudi Arabia, and Mauritius.