Edelweiss Mutual Fund is set to launch a Greater China-focused equity scheme for retail investors through the GIFT City platform, according to reports. The proposed offering will allow Indian investors to gain exposure to equity markets in Mainland China, Hong Kong, and Taiwan through an international feeder fund structure.
Feeder Fund Structure via GIFT City
The scheme is designed as a feeder fund that will invest in the JPMorgan Funds – Greater China Fund, a Luxembourg-domiciled SICAV. The fund will be offered through GIFT City, India’s International Financial Services Centre (IFSC), which enables international investment access outside the limits applicable to overseas investments by domestic mutual fund schemes.
Through this structure, Indian investors can participate in Greater China equity markets using the GIFT City framework rather than traditional domestic routes.
Eligibility and Investment Routes
The scheme will be open to retail investors, including resident Indians and non-resident Indians, excluding investors based in the United States and Canada. Investments can be made under the Liberalised Remittance Scheme (LRS) or through the Overseas Portfolio Investment (OPI) route.
The minimum initial investment amount has been set at $5,000, with additional investments permitted from $1,000 onwards.
Investment Focus and Expenses
The fund will follow the same investment approach as Edelweiss Mutual Fund’s existing offshore Greater China feeder structure. The underlying portfolio provides exposure to key sectors such as technology, consumer discretionary, and financial services, which form a substantial part of the regional equity markets.
Under the proposed structure, the Direct Plan will have an annual expense ratio of 0.50 percent, while the Regular Plan will carry an expense ratio of 1.50 percent per annum, excluding expenses of the underlying fund. The scheme will not levy any exit load.
Subscription and Onboarding
Edelweiss Mutual Fund has indicated that an online onboarding process will be introduced to facilitate investor participation. The Greater China equity scheme will be the fund house’s first international mutual fund offering for retail investors launched through GIFT City, with additional products expected to follow using a similar framework.
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