GIFT Fund FAQs
Welcome to our FAQ page! Here, you’ll find answers to common questions and helpful information to guide you through our services and processes. If you don’t find the answer you're looking for, please feel free to reach out to us directly.
General Information
The SageOne India Growth GIFT Fund is an open-ended, restricted (non-retail) offshore in-bound investment scheme. It operates as a Category III Alternative Investment Fund (AIF) under the IFSCA framework and holds a Category 1 Foreign Portfolio Investor (FPI) license.
The Fund's primary strategy is to invest in the SageOne Core Portfolio, a strategic long-only equity investment approach targeting 15-20 high-growth, mid to small-cap companies within the Indian equity market. Specifically, it invests in companies ranked 101st to 600th in market capitalization (as per AMFI), with an emphasis on strong fundamentals, growth potential, and market leadership. The Fund aims to capture opportunities in emerging Indian market leaders with scalable business models and competitive advantages, offering investors exposure to high-potential growth in India’s dynamic economy.
An Offshore Category III Alternative Investment Fund (AIF) is a sophisticated investment vehicle designed specifically for international investors looking to access Indian markets. These funds represent the most dynamic and versatile category within the AIF framework, employing complex trading strategies to generate returns.
What distinguishes Category III AIFs is their ability to use diverse investment strategies, including leverage and derivatives trading, to maximize returns. They can invest across multiple asset classes - from listed and unlisted equities to structured products and distressed assets. Unlike Category I and II AIFs, which have more stringent investment restrictions, Category III funds enjoy greater flexibility in their investment approach.
When established in IFSC India (GIFT City), these offshore funds enjoy several advantages: a tax-efficient structure, a dollar-denominated framework, and simplified regulatory requirements compared to mainland Indian funds. They operate under the oversight of the International Financial Services Centres Authority (IFSCA), which provides a robust yet flexible regulatory environment.
Domestic Category III AIFs and Offshore Category III AIFs serve different markets and operate under distinct regulatory frameworks. Here are the fundamental differences between these two investment vehicles:
- Jurisdiction and Location
Domestic Category III AIFs are established and operate within mainland India, maintaining their primary business presence there. In contrast, Offshore Category III AIFs operate exclusively from GIFT IFSC (Gujarat International Finance Tec-City International Financial Services Centre), India's first operational smart city and international financial services center.
- Currency Operations
The currency distinction is significant - Domestic AIFs conduct all their transactions and maintain their books in Indian Rupees (INR). Offshore AIFs operating from GIFT IFSC, however, deal entirely in foreign currencies, facilitating international transactions and investments.
- Investor Base and Accessibility
Domestic AIFs have a broader investor base, accepting investments from both Indian residents and non-resident investors, subject to applicable regulations. GIFT IFSC AIFs, on the other hand, are primarily designed to attract foreign investors, focusing on international capital markets and cross-border investments.
- Regulatory Oversight
The regulatory framework differs substantially between the two. Domestic AIFs must comply with SEBI's mainland regulations, which include detailed guidelines on investment restrictions, reporting requirements, and operational procedures. GIFT IFSC AIFs fall under the jurisdiction of the International Financial Services Centres Authority (IFSCA), which typically offers more flexible operational norms and regulatory requirements to promote international investment.
Strategy Related FAQs
SageOne India Growth GIFT Fund primarily invests in the SageOne Core Portfolio, a strategic long-only equity investment approach targeting 15-20 high-growth, mid to small-cap companies within the Indian equity market. Specifically, it invests in companies ranked 101st to 600th in market capitalization (as per AMFI), with an emphasis on strong fundamentals, growth potential, and market leadership. The Fund aims to capture opportunities in emerging Indian market leaders with scalable business models and competitive advantages, offering investors exposure to high-potential growth in India’s dynamic economy.
The risk profile of the SageOne India Growth GIFT Fund ranges from moderate to high, primarily due to its focus on mid- and small-cap stocks within the Indian equity markets. These segments are inherently more volatile, leading to potential fluctuations in the portfolio's value, particularly during periods of market uncertainty. While these stocks offer significant long-term growth potential, they also come with higher short-term risk.
To manage this, the SageOne India Growth GIFT Fund employs a diversified strategy, spreading investments across sectors and stocks to optimize risk-adjusted returns. Professional oversight ensures careful allocation and monitoring.
Investors in the SageOne India Growth GIFT Fund should be aware of the potential for market volatility and possess a higher risk tolerance. The portfolio’s goal is to balance growth with prudent risk management, but investors must be prepared for fluctuations in performance, especially in response to market conditions.
For more details about our risk management framework, visit our investment philosophy page
SageOne India Growth GIFT Fund is ideal for investors who:
- Seek strategic exposure to mid-cap and small-cap Indian equities
- Have a higher risk tolerance and are seeking long-term growth with thoughtful risk management.
- Are knowledgeable about Indian equity market dynamics, comfortable with the volatility and potential rewards of market movements.
- Embrace a long-term investment approach, understanding that market fluctuations are part of the journey.
- Prefer to rely on seasoned professionals for portfolio management, leveraging deep industry expertise.
- Are high-net-worth individuals looking for a tailored, hands-on investment strategy.
- Are familiar with the complexities and benefits of Alternative Investment Funds (AIFs) and seek a more personalized investment experience.
An investment horizon of at least 3-5 years is generally recommended to allow for effective capital appreciation and to ride out Indian Equity Market volatility. This longer horizon helps in maximizing returns while minimizing the impact of short-term market fluctuations.
Eligibility & Requirements
SageOne India Growth GIFT Fund is open to foreign individuals and institutions (excluding those based in Canada). Additionally, Non-Resident Indians (NRIs) can invest through their NRE accounts or foreign bank accounts.
Yes, we do have minimum investment requirements, which vary depending on the investor’s location. For non-U.S. investors, the minimum investment amount is USD 150,000. For U.S. investors, the minimum investment is set at USD 500,000.
The SageOne India Growth GIFT Fund offers two distinct fee structures, designed to cater to different investment preferences:
- Class A Units: This option features a flat management fee, which is mutually agreed upon with the client. The fee is calculated based on the capital invested in the portfolio.
- Class B Units: This structure includes both a flat management fee and a performance fee. The performance fee is charged as a pre-agreed percentage of profits that exceed a specified return threshold.
The applicable fee structure depends on the class of units and the investment amount. For a detailed breakdown of the fees applicable, or if you have any questions, feel free to reach out to us at ir@giftcity.sageoneinvestments.com
The SageOne India Growth GIFT Fund is an offshore Category III Alternative Investment Fund (AIF), where the Fund is registered as Foreign Portfolio Investor (FPI) for their investments in India. The Fund is subject to taxation at the fund level. This means that all the applicable taxes on the gains and other income are paid by the fund before it distributes the profits to the investors/contributors of the Fund. The tax rate applied to the Fund's gains will vary based on the nature of the income generated, such as short-term capital gains, long-term capital gains, dividend income, or interest income, each of which is subject to different tax treatments.
As a result, investors generally receive post-tax distributions from the Fund and typically do not incur additional income tax obligations in India on these distributions.
However, investors may be subject to tax liabilities based on their country of residence or tax domicile. The tax treatment of distributions from the fund can vary depending on several factors, including:
- The tax laws and regulations of the investor's country of residence
- Existing double taxation avoidance agreements (DTAAs) between the investor's country and India
- Their personal tax status and circumstances in their jurisdiction
- Nature of the income (whether classified as Business Income, investment income, capital gains, or other categories in their jurisdiction)
Investors are strongly encouraged to consult with qualified tax advisors in their respective jurisdiction to understand their jurisdiction specific tax obligations and reporting requirements related to their investment in the Fund.
Fees & Charges
The fixed fee component, which includes the Management Fee, is billed monthly, along with any applicable statutory levies.
The variable fee component, which comprises the Performance Fee, is assessed and charged annually on March 31st each year.
Our fee structures are designed to be transparent and competitive. While we typically adhere to our standard rates, we understand that investment needs can vary. For selective investors, we may be able to offer some flexibility on fees based on the size and complexity of your investment portfolio or your chosen investment strategy. In such cases, we are open to discussing customized fee arrangementsFor more information about SageOne’s fee structure and the potential for customization, please reach out to us at ir@giftcity.sageoneinvestments.com.
Yes, the fund has an exit load of 1% if units are redeemed within 12 months from the date of investment. No exit load applies for redemptions made after completing the 12-month holding period.
Performance & Reporting
The performance is measured using the Time-Weighted Rate of Return (TWRR) method. This method employs daily valuation for rate of return calculation, ensuring portfolio validation on the date of any external cash flow, with daily weighted cash flows. Periodic returns are geometrically linked to provide an accurate representation of performance.
Total return includes both realized and unrealized gains, as well as income, and is calculated after the deduction of transaction charges. Trade date accounting is used for performance calculations, while accrual accounting is applied for fixed-income securities and dividends (as of the ex-dividend date). The market values of fixed-income securities also include accrued income.
At SageOne Investment Managers, we prioritize transparency and proactive communication. We ensure that our clients receive regular updates and important information related to their investments. The key communications you can expect include:
Fund/Securities Transfer Notifications: Whenever you make a transfer to your PMS & AIF account, we will promptly notify you, ensuring you're always informed of any changes.
Monthly Portfolio Reports: By the 5th working day of each month, we provide a comprehensive portfolio statement detailing your investments and their performance.
Quarterly Advance Tax Data: To assist with your tax planning, we provide crucial information—such as capital gains, interest, and dividend details—by the 15th of each quarter-ending month. This data helps you stay prepared for advance tax payments.
Annual Tax Filing Report: We deliver an audited report each May, containing all the necessary information for filing taxes in India. This includes details such as capital gains, interest, dividends, TDS, securities at cost, bank statements, broker ledgers, and more.
Through these regular and timely communications, we aim to keep you fully informed, ensuring a smooth and transparent investment experience.
You will receive detailed performance reports every month, which will be sent directly to your registered email address.
The performance of the SageOne India Growth GIFT Fund is assessed using the MSCI India Midcap Index (USD) as its benchmark.
Redemptions & Liquidity
While investments cannot be redeemed instantly, you can redeem them every fortnight, provided you give a minimum notice of 5 business days.
You have the flexibility to choose between full or partial redemption, as long as you maintain the required minimum investment threshold. For example, if your current investment is USD 750,000 and the strategy mandates a minimum investment of USD 150,000, you can redeem up to USD 600,000 while ensuring that you retain the required minimum of USD 150,000.
Please note that exit loads may apply to both full and partial redemptions. The specific exit load structure depends on the holding period.
For more information regarding redemption procedures, exit load details, or any other queries, feel free to reach out to our Investor Relations team at cr@giftcity.sageoneinvestments.com.
Once your redemption request is processed and initiated, you can expect to receive your funds within 5 working days.
While there is no fixed lock-in period, investments and redemptions can be made on the 15th of each month (or the next business day if the 15th falls on a holiday) or the last working day of each month. Additionally, an exit load of 1% is applicable if units are redeemed within 12 months from the date of investment. No exit load applies if the units are redeemed after the 12-month holding period.
The fund has an exit load of 1% if units are redeemed within 12 months from the date of investment. No exit load applies for redemptions made after completing the 12-month holding period.
To request a redemption, you need to submit a formal redemption request. This can be done either by filling out a redemption form or by emailing the request from your registered email ID to cr@giftcity.sageoneinvestments.com.
Account Related FAQs
Account setup for SageOne GIFT Fund is tailored to each client's unique circumstances, including residency status and investment structure. Our experienced operations team provides personalized guidance throughout the onboarding process, ensuring a smooth and efficient experience. For detailed information about account setup procedures, please contact ir@giftcity.sageoneinvestments.com
Absolutely! We provide a seamless option for clients to onboard directly with us, eliminating the need for intermediaries or distribution services. This ensures a more direct and personalized experience. For further assistance or more information, feel free to contact us at ir@giftcity.sageoneinvestments.com
Account setup times vary based on your account type:
For individual clients - your account is typically set up within 24 to 48 hours after completing the e-signing process.
For non-individual clients - the setup process takes slightly longer, usually 48 to 72 hours after e-signing is finalized.
The specific documents required for investing in SageOne India Growth GIFT Fund varies depending on several factors, such as the type of entity you are, the complexity of your business, and the accuracy and completeness of the information you provide.
To streamline the process, we've created document checklists for different entity types. These checklists will guide you in gathering the necessary information and documentation.
For more details on the account setup process, including timelines and specific requirements, please contact us at ir@giftcity.sageoneinvestments.com
To update your KYC (Know Your Customer) information or personal details, simply email our dedicated operations team at cr@giftcity.sageoneinvestments.com. Our team will guide you through the process and provide a list of any required documents.
Once your account is successfully opened, SageOne will share detailed wire transfer instructions in the welcome email. You can follow these instructions to complete your fund transfer. If you have any questions or need assistance, feel free to contact us at cr@giftcity.sageoneinvestments.com.
Yes! We provide 24/7 access to your portfolio through our secure online portal. Upon becoming a client, you'll receive personalized login credentials to access a comprehensive, real-time view of your investments and transaction history. Additionally, we send monthly portfolio statements to keep you updated on your portfolio's performance and activity.
In case of any discrepancies, please contact our client relations team at cr@giftcity.sageoneinvestments.com immediately, and we will investigate and resolve the issue promptly.
Yes, you can nominate an individual of your choice for your SageOne India Growth GIFT Fund Investment.
Support & Customer Service
You can email our customer service team at cr@giftcity.sageoneinvestments.com. Our team is available Monday through Friday from 9 AM to 5 PM IST.
Your point of contact depends on how you invested with us. If you were introduced through a distributor, your primary relationship manager (RM) is at that introducing firm - they should be your first point of contact for any questions or concerns. Of course, you can always reach out to SageOne Investment Managers directly for additional support via cr@giftcity.sageoneinvestments.com.
For direct clients who invested with us without an intermediary, our dedicated customer service team is here to help. They'll carefully assess your needs and work closely with you to provide appropriate solutions.
If you have any questions that have not been addressed by these FAQs, please use this form or reach out to us at ir@giftcity.sageoneinvestments.com to ask your question. We will reply to your question as soon as possible.
If you have any questions that have not been addressed by these FAQs, please reach out to us at ir@giftcity.sageoneinvestments.com to ask your question.