Tata AMC launches Dynamic Equity Fund at GIFT City with min $500 investment

Tata AMC gets IFSCA approval to launch Tata India Dynamic Equity Fund at GIFT City; global investors can start with $500 and enjoy tax benefits while accessing India's equity market

Tata Asset Management has secured approval from the International Financial Services Centres Authority (IFSCA) to launch the Tata India Dynamic Equity Fund — GIFT IFSC, the company said in a press release. With a minimum investment requirement of just $500, the fund is designed to give global investors simplified access to India’s fast-growing equity market — the world’s fourth-largest economy. 

The new product is positioned as a retail-oriented inbound feeder fund, investing in mutual fund equity schemes and Exchange-Traded Funds (ETFs). By offering exposure across categories, the fund seeks to open India’s growth story to a wide spectrum of international and NRI investors.   

‘India at the cusp of a growth cycle’

Highlighting the timing of the launch, Prathit Bhobe, chief executive officer and managing director of Tata Asset Management, said that India is at the cusp of a multi-decade growth cycle, strengthened by demographics, digital transformation, infrastructure push, and economic formalisation. “GIFT City seeks to be a world-class gateway for global investors to participate in this opportunity.  With our entry into IFSC, Tata AMC is well-placed to connect international and NRI investors with India’s vibrant capital markets through innovative and accessible products,” Bhobe said.

Dynamic asset allocation strategy

The fund will adopt an active allocation strategy, balancing exposure to large, mid, and small-cap segments. It will also take tactical bets on emerging themes such as technology, energy, and healthcare to enhance returns, the press statement mentioned.

  Explaining the approach, Abhinav Sharma, head, international business, Tata Asset Management, said, “...The fund will dynamically allocate assets based on prevailing market conditions. In the current scenario, it will allocate 50-100 per cent of the AUM to broad-based funds and 0-50 per cent to sectoral and thematic opportunities, ensuring diversified access to India’s growth potential while maintaining optimal flexibility.”

Tax-efficient entry to Indian equities

A key advantage for non-resident investors is full exemption from Indian taxes on income earned through the fund. Investors will only be taxed according to the rules of their home country, making it an attractive and efficient gateway to Indian equities, the press release said. 

The fund will be available to foreign individuals, entities, NRIs, and Overseas Citizens of India (OCIs) from jurisdictions aligned with Financial Action Task Force (FATF) standards.