HDFC Asset Management Company has received approval from the International Financial Services Centre Authority to set up a wholly-owned subsidiary at the Gujarat International Finance Tec (GIFT) City in Ahmedabad.
The fund house is in the process of setting up the company and will be launching funds targeting global investors who are looking at allocating capital to India, apart from domestic investors and NRIs who are exploring investments globally.
The wholly-owned subsidiary HDFC AMC International is going to be the “offshore hub” for the mutual fund major which does not have any other companies/businesses outside of India other than an office in Dubai.
Other fund houses
In January, both Aditya Birla Sun Life AMC and Nippon Life India AMC had received approval to set up new unit as a strategic step towards growth.
Aditya Birla Sun Life AMC already has a presence in Dubai, Singapore and Mauritius.
The fund house expects to provide investment management and advisory services to prospective and existing clients across sovereign wealth funds, family offices and global funds, said Birla MF.
Fund houses in GIFT City will be exempted from certain domestic laws but have to follow international best practices.
Nippon India AMC has been managing and advising global flows through various funds and mandates and catering to investors across Asia, West Asia, the UK, the US and Europe.
Nippon AMC currently operates five funds for Japan and other mandates in collaboration with asset managers in Australia, Taiwan, etc. “Our focus is to become gateway for global investments into India and we believe GIFT IFSC is an important step as it will further strengthen and accelerate global allocations into India,” said Nippon AMC.