Mirae Asset Unveils Global Allocation Fund via GIFT City for Indian Investors
Mirae Asset Investment Managers has introduced the Mirae Asset Global Allocation Fund, a close-ended Category III AIF with a 3-year tenure. The fund aims to provide Indian investors exposure to international markets, focusing on sectors like AI, semiconductors, EVs, and blockchain. It allocates 50-70% to developed markets and 30-50% to emerging markets and thematic investments. Investments can be made through the LRS route, with a 20% TCS applicable on investments over INR 10 lakh. Mirae Asset manages over $600 billion globally and operates nearly 700 ETFs.
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Mirae Asset Investment Managers has launched the Mirae Asset Global Allocation Fund, a new investment vehicle designed to offer Indian investors exposure to international markets and themes. The fund, structured as a close-ended Category III Alternative Investment Fund (AIF) with a 3-year tenure, aims to address the limited domestic exposure to cutting-edge sectors such as artificial intelligence, semiconductors, electric vehicles, and blockchain.
Fund Structure and Allocation Strategy
The Mirae Asset Global Allocation Fund, launched through Gujarat International Finance Tec-City (GIFT City), adopts a dual-pronged allocation strategy:
- Core Allocation: 50-70% invested in developed markets, primarily the United States
- Tactical Allocation: 30-50% directed towards emerging markets and thematic investments
This structure is designed to provide a balanced approach, combining the stability of established markets with the growth potential of emerging sectors and economies.
Rationale for International Diversification
Vaibhav Shah from Mirae Asset Investment Managers emphasized the importance of international diversification for Indian investors. He pointed out that the domestic market offers limited exposure to several key global themes and sectors that are driving technological and economic growth worldwide.
Performance Comparison
Shah highlighted the historical performance of US markets compared to Indian markets:
| Market | Returns (in dollar terms) over 15 years |
|---|---|
| US | 14-15% |
| India | 8-9% |
This comparison underscores the potential benefits of including international investments in a diversified portfolio.
Investment Process for Resident Investors
For resident Indian investors interested in the fund:
- Investments must be made through the Liberalised Remittance Scheme (LRS) route
- A 20% Tax Collected at Source (TCS) applies for investments exceeding INR 10 lakh
About Mirae Asset
Mirae Asset brings significant global expertise to this new offering:
- Manages over $600 billion globally
- Operates nearly 700 Exchange Traded Funds (ETFs)
- ETF assets under management exceed $150 billion
- Presence in 25 locations across 15 countries
The launch of the Mirae Asset Global Allocation Fund represents a strategic move to bridge the gap between Indian investors and global investment opportunities. By providing access to international markets and themes through a structured fund, Mirae Asset aims to enhance portfolio diversification options for Indian investors seeking global exposure.
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