NewsCorporate ActionsAlchemy Capital Becomes First Fund House to Migrate from Mauritius to GIFT CityAlchemy Capital Becomes First Fund House to Migrate from Mauritius to GIFT City
Alchemy Capital Management becomes the first fund house to relocate from Mauritius to Gujarat International Finance Tec-City (GIFT City). The company's flagship fund, Alchemy India Long Term Fund, has outperformed the BSE 500 dollar index over 17 years with 11.00% net dollar returns. GIFT City offers advantages like no GST on management fees, tax exemptions, and simplified compliance. Alchemy plans to launch new funds and expects significant growth in GIFT City investments over the next decade.
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Alchemy Capital Management has made a groundbreaking move by becoming the first fund house to migrate from Mauritius to Gujarat International Finance Tec-City (GIFT City), marking a significant shift in India's fund management landscape.
Strategic Relocation
Hiren Ved, Co-Founder of Alchemy Capital Management, emphasized the importance of managing India-focused strategies from within the country. This strategic decision aligns with the growing trend of bringing investment management closer to the markets they serve.
Impressive Track Record
The company's flagship fund, Alchemy India Long Term Fund, has demonstrated remarkable performance:
- 11.00% net dollar returns compounded since inception
- Outperformed the BSE 500 dollar index (6.60%) over 17 years
- Generated over 400 basis points of alpha
GIFT City Advantages
Ved highlighted several benefits of relocating to GIFT City:
- No GST on management fees
- Tax exemptions
- Simplified compliance procedures
- Growing ecosystem of service providers
Regulatory Environment
The International Financial Services Centres Authority (IFSCA) has adopted a consultative approach, which Ved described as "refreshing" compared to traditional rigid regulatory environments. This approach is likely to attract more fund houses to consider similar moves.
Future Plans
Alchemy Capital Management is not resting on its laurels. The company has ambitious plans for expansion in GIFT City:
- Launch of a long-short fund
- Introduction of a hybrid strategy
Long-term Outlook
Ved expressed optimism about the future of GIFT City as a financial hub. He projected that investments through GIFT City could reach billions or even trillions of dollars within the next five to ten years, underlining the potential for significant growth in this emerging financial center.
This migration by Alchemy Capital Management could set a precedent for other fund houses, potentially catalyzing a shift in the Indian fund management industry towards GIFT City.
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