Where the rich are going: All about setting up a family office in GIFT City

Source: Business Standard

Revolutionizing Wealth Management: GIFT City's Family Investment Fund

In the intricate world of high-stakes finance, where ultra-high-net-worth individuals (UHNWIs) and their families navigate the complexities of global investments, a ground-breaking solution has emerged. GIFT City, India’s pioneering International Financial Services Centre (IFSC), has unveiled a game-changing innovation tailored for family offices: the Family Investment Fund (FIF). This innovative fund structure is reshaping the landscape of global wealth management, offering unprecedented benefits and opportunities for family offices worldwide.

Unraveling the Essence of FIF: A Paradigm Shift in Wealth Management

Family offices, entrusted with the management of colossal wealth, encounter the challenge of diversifying portfolios across varied geographies and asset classes. Navigating intricate regulatory frameworks often poses a significant hurdle. Enter GIFT City’s FIF, a beacon of innovation designed to streamline the investment journey for family offices.

Empowering Families: Beyond Boundaries and Limits

Traditionally, the Liberalised Remittance Scheme (LRS) capped individual investments at $250,000 annually. FIF, however, transcends these limits, allowing family-owned entities to remit up to 50% of their net worth. This revolutionary approach empowers families to amplify their global investment corpus significantly.

Taxation Liberation: Maximizing Returns

Within the confines of GIFT City, FIF stands as a haven of tax benefits. Capital gains tax, dividend distribution tax, securities transaction tax, and stamp duty become relics of the past within this innovative structure. The FIF can also harness the power of India’s double taxation avoidance agreements (DTAAs) with various countries, further enhancing its appeal.

Operational Simplicity: Efficiency Redefined

Unlike conventional funds, FIF liberates family offices from the constraints of external fund managers and trustees. Managed entirely by family members, it offers unparalleled operational flexibility. With no minimum investment or lock-in period requirements, the FIF presents a hassle-free, cost-effective, and prompt setup process. Minimal documentation and compliance costs pave the way for swift implementation.

GIFT City: An Oasis of Financial Opportunities

Nestled in the vibrant state of Gujarat, GIFT City has rapidly emerged as a global financial hub. Established in 2007, it offers an enticing array of benefits, including tax incentives, relaxed exchange control norms, and seamless access to international markets. The integration of FIF into GIFT City’s financial ecosystem elevates its appeal, positioning it as the ultimate destination for family offices seeking strategic and lucrative global investments.

FIF Redefining Wealth Management

The advent of FIF heralds a new era in wealth management, promising unprecedented avenues for family offices to thrive in the dynamic global market. Reports already hint at prominent business families gearing up to establish the inaugural FIF within GIFT City. As the global financial landscape witnesses this revolutionary transformation, family offices stand at the brink of a new dawn, where borders fade, limits vanish, and opportunities know no bounds.

In the heart of GIFT City, the FIF stands as a testament to innovation, empowering families to craft a legacy that resonates across generations. Welcome to a future where wealth management transcends boundaries, and prosperity finds its truest expression in the art of strategic and limitless investment.