Edelweiss Asset Management Expands to GIFT City, Launches Multi-Manager Equity Fund
Edelweiss Asset Management has opened a new branch in Gujarat International Finance Tec-City (GIFT City) and launched the Edelweiss India Multimanager Equity Fund – Series I. This Category III Alternative Investment Fund targets Non-Resident Indians and global investors, offering a diversified portfolio with 60% allocation to flexicap strategies and 40% to midcap strategies. The fund aims to simplify cross-border investing and enhance portfolio diversification, leveraging GIFT City's tax incentives and regulatory framework. Edelweiss plans to offer both inbound products for global investors and NRIs, and outbound products for resident Indians.
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Edelweiss Asset Management has made a strategic move by opening a new branch at the Gujarat International Finance Tec-City (GIFT City) and introducing an innovative fund product targeting Non-Resident Indians (NRIs) and global investors.
New Branch in GIFT City
The asset management firm has established its presence in GIFT City, India's first operational smart city and international financial services center. This expansion aims to tap into the growing market for cross-border investment products and services.
Launch of Edelweiss India Multimanager Equity Fund – Series I
Alongside the branch opening, Edelweiss has launched the Edelweiss India Multimanager Equity Fund – Series I. This new offering is structured as a Category III Alternative Investment Fund (AIF) under the International Financial Services Centre (IFSC) regulations. The fund operates as a fund-of-funds, providing investors with a diversified portfolio mix:
- 60% allocation to flexicap strategies
- 40% allocation to midcap strategies
This allocation is spread across multiple asset managers, offering investors a blend of different investment styles and expertise.
Fund Strategy and Target Audience
The Edelweiss India Multimanager Equity Fund – Series I is designed to simplify cross-border investing while enhancing portfolio diversification. It primarily targets NRIs looking to participate in India's equity markets. The fund leverages GIFT City's attractive tax incentives and regulatory framework to offer a compelling investment proposition.
Dual Product Offering
Radhika Gupta, Managing Director of Edelweiss Asset Management, highlighted the dual nature of their product offering from the GIFT City branch:
- Inbound products: Tailored for global investors and NRIs
- Outbound products: Designed for resident Indians in both retail and non-retail formats
This approach allows Edelweiss to cater to a wide range of investors, facilitating both domestic and international investment flows.
Implications for Investors
The launch of this fund and the expansion into GIFT City represent significant developments for investors:
- Easier access to Indian equity markets for NRIs
- Diversification benefits through multi-manager approach
- Potential tax advantages due to GIFT City's special economic zone status
- Exposure to both flexicap and midcap strategies in a single fund
Edelweiss Asset Management's move into GIFT City positions the firm to capitalize on the growing demand for sophisticated investment products that bridge international capital with Indian market opportunities.
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