The objective of the Gift City AIF is to provide tax-efficient, long-term capital appreciation by investing into an underlying Indian mutual fund—namely the Motilal Oswal Large & Midcap Fund (MO LMC). The structure is designed to offer alpha generation, diversification across high-growth sectors, and alignment of promoter interest with investors.

• Underlying Portfolio Exposure: The fund feeds into the Motilal Oswal Large & Midcap Fund, a SEBI-registered equity mutual fund that follows a focused strategy with ~35 high-conviction stocks.
• Blend of Large & Midcap Stocks: The strategy harnesses the stability of large caps and the aggressive growth potential of mid caps, offering a balanced equity exposure.
• Basket-Themed Allocation: It applies a house-identified theme-based approach targeting sectors like industrials, pharma, IT, defense, and financials.
• Promoter Skin in the Game: With $75 million of the promoter’s own capital invested, the strategy shows strong alignment of interests.

• Tax-Free Income: No capital gains or dividend distribution tax under Section 10(4D) & 10(23FBC) of the Income Tax Act.
• No PAN Required: NRIs and foreign investors are exempt from filing tax returns or obtaining PAN in India.
• Regulatory Oversight: Fully regulated by IFSCA (IFSC Authority) and SEBI, ensuring transparency and protection.
• Simplified Global Access: Investors can contribute via offshore USD accounts (NRE/foreign accounts) and invest in Indian equity markets seamlessly.
• No Diversification Limits: Greater investment flexibility for AIFs in IFSC vs. onshore funds.