This quarter has been pivotal, with significant developments affecting our domestic and international investment strategies. Critical updates include opportunities at GIFT City, shifts in our international portfolio, new hybrid fund categories, and more.

1.GIFT City – Opportunities for Investment:

Gujarat International Finance Tec-City (GIFT City) offers options to invest in both overseas markets and domestic investments through Portfolio Management Services (PMS), Alternative Investment Funds (AIF), and real estate. Taxation will be levied based on the investor's country of residence. GIFT City houses India's first International Financial Services Centre (IFSC), which provides a platform for international financial services. It has emerged as a landmark project offering a wide range of investment opportunities for both Resident Indians (RIs) and Non-Resident Indians (NRIs).

Through the IFSC in GIFT City, individual investors can access international financial markets. This access allows investors to diversify their portfolios by investing in global equities, debt instruments, and other financial products. The regulatory framework in GIFT City features streamlined processes and single-window clearances to make it investor-friendly. One of the central attractions of GIFT City is its tax incentives. Being a Special Economic Zone (SEZ), it offers various tax benefits, such as exemptions from GST, stamp duty, and other local taxes. We have introduced multiple financial products like PMS, AIF, and real estate from GIFT City in our investment portfolio for both RIs and NRIs. GIFT City's inbound investment offerings present a smooth and efficient avenue for foreign nationals and NRIs to participate in the Indian financial market. The seamless integration of these offerings into the broader investment framework ensures that investors can easily tap into India's economic market.

Know more about GIFT City:

A Deep dive into GIFT City a new financial center in India

How Gujarat’s GIFT City Is Opening Up New Investment Avenues

2.Election Impact on the Indian Market:

The last couple of months have been crucial for the Indian market. The election results had a notable impact, causing swift changes in the market both on exit poll and election result day. We observed varying market reactions and high valuations influencing investor sentiment and market dynamics. These factors have led to adjustments in our investment strategies to navigate these changes and capitalize on emerging opportunities.

The mid and small-cap segment has been experiencing high valuations, driven by robust investor interest and a favourable market environment. These segments have shown significant growth potential, attracting substantial retail and institutional investor inflows. The increased demand has pushed valuations higher, often exceeding historical averages. Investors must be mindful of potential volatility and ensure their portfolios are well-diversified to mitigate risks.

3.Addition to International Portfolio:
Recent SEBI regulatory restrictions have halted further investment in the Nasdaq Fund of Funds (FOF) Mutual Fund to comply with limits on overseas investments. We have strategically shifted our international portfolio focus to an IT & Tech thematic international fund. This change aligns with our commitment to having international exposure in our portfolio and to capitalize on the rapidly evolving tech sector while adhering to SEBI guidelines. We chose the IT & Tech sector for its robust growth potential and alignment with global technological advancements.

4.Introduction of New Hybrid Fund Categories:
Two new funds have been added to the Hybrid category: the Dynamic Asset Allocation Fund and the Multi Asset Allocation Fund.

The Dynamic Asset Allocation Fund is a conservative hybrid fund that adjusts its investment mix between equity and debt based on market conditions, economic factors, and valuation metrics. The fund's equity allocation can range between 35% and 65%, allowing it to reduce equity exposure during market downturns and increase it during favourable conditions. This is suitable for someone looking for a short—to medium-term investment.

The Multi Asset Allocation Fund invests in a diversified portfolio across multiple asset classes, such as equities, debt, and commodities like gold and silver. Equity allocation in this fund can range from 20% to 80%. It offers a versatile investment option tailored to market conditions, aiming for optimized returns by leveraging the performance of different asset classes.

5.KYC Revalidation:
The new KYC norm requires all individuals to revalidate their KYC where KYC address details don't match Aadhaar's. Ensuring accurate and updated KYC information is crucial for maintaining the integrity and security of our investment processes. However, the requirements have been extended until March 2025 for NRI investors. Our operations team has been at the forefront of ensuring the KYCs are updated and validated with all the latest requirements.

6.New Office Location:
We are thrilled to announce that we have shifted to our new office location. This move represents our growth and commitment to providing enhanced services and support to our investors. The new office offers improved facilities and a more accessible location, enabling us to meet our clients' needs.