Fund Snapshot
| Fund Attribute | Details |
| Fund Name | Kotak India Emerging Equity Fund of Fund IFSC |
| Fund Manager | Kotak Alternate Asset Managers Limited (KAAML) |
| Regulatory Authority | International Financial Services Centres Authority (IFSCA) |
| AIF Category | Category-III AIF (Alternative Investment Fund) |
| Registration Number | IFSC/AIF3/2024-25/0153 |
| Date of Registration | June 03, 2024 |
| Domicile Base | GIFT SEZ, GIFT City, Gandhinagar, Gujarat, India |
| Structure | Open-Ended Fund of Funds (FoF) |
| Base Currency | US Dollar (USD) |
Fund Overview
The Kotak India Emerging Equity Fund of Fund IFSC operates as an institutional programmatic router. Instead of building a stock portfolio by picking 50 standalone stocks directly on local exchanges, this Category-III Alternative Investment Fund is built to dynamically invest its capital across a curated collection of other underlying equity schemes—focusing heavily on high-growth mid-cap, small-cap, and emerging business strategies managed under the Kotak umbrella.
Being domiciled in the GIFT City Special Economic Zone gives it a powerful institutional edge. Global investors buy into the fund using foreign currency (primarily USD). This completely removes the multi-layered local onboarding processes, localized tax documentation, and currency conversion blockages typically associated with entering domestic Indian capital markets directly.
Investment Philosophy
The fund’s foundational thesis recognizes that capturing structural alpha in India's emerging equity sectors requires extensive, multi-manager diversification. Its strategic blueprint relies on three pillars:
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Targeting Emerging High-Alpha Corridors: The strategy intentionally steers capital toward India's mid-cap, small-cap, and sector-disruptor spaces. These underlying segments historically display significantly faster earnings growth profiles compared to traditional, mature large-cap conglomerates.
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Institutional Multi-Strategy Diversification: Rather than locking into a single stock-picking methodology, the "Fund of Funds" model pools assets across distinct underlying schemes. This allows it to bridge a mix of high-conviction active thematic funds, small-cap alpha strategies, and rules-based quantitative systems to flatten out localized volatility curves.
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Continuous Portfolio Optimization: Kotak’s alternate asset committee acts as an active manager over the underlying funds. They scale allocations up or down dynamically based on market valuations, structural sectoral rotations, and granular liquidity tracking within the underlying Indian equity layers.
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Uday S. Kotak
Uday S. Kotak is the Chairman and Non-Executive Director of the Company, plus he founded and directs Kotak Mahindra Bank Limited. He used to be the Bank's Managing Director and CEO until September 2023. Now, he's in a non-executive position, still helping steer the bank's future. He has almost 40 years of experience and was a key player in growing the Kotak Mahindra Group into one of India's top financial service groups. They do all sorts of things like banking, asset management, insurance, and capital markets. People think of Mr. Kotak as someone who really helped shape India's financial scene. He's been in charge of the Indo-UK Financial Partnership and been on global advisory boards. He's also headed big governance projects and won a bunch of awards for his career and business smarts. He got his bachelor's degree in commerce and an MMS from JBIMS, Mumbai.
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Find answers to common questions about fund investments, performance, portfolio strategy, and investor services.
A Fund of Funds does not buy individual stocks directly on the stock exchange. Instead, it invests its pooled assets into units of other institutional funds or underlying investment vehicles. This gives the investor immediate, multi-layered diversification across hundreds of mid-and-small-cap companies via a single access point.
This vehicle is explicitly engineered for non-resident allocators looking for highly professional, institutional access to India's mid-and-small-cap growth stories. This covers foreign institutional investors, offshore family offices, international asset managers, and qualified non-resident Indians (NRIs) based in global financial centers like Singapore, London, New York, or Dubai.
In accordance with standard International Financial Services Centres Authority (IFSCA) regulations governing Category-III Alternative Investment Funds in GIFT City, the minimum investment threshold for an accredited individual allocator is $150,000 USD (or its equivalent value in other convertible global currencies).
While the underlying investments are ultimately deployed into Indian equity markets (which operate in INR), the investor's core capital accounting, asset tracking, and eventual fund payouts are executed in US Dollars. This allows international allocators to maintain clean global currency ledger balances.
By routing foreign capital via a Category-III AIF in GIFT City, offshore investors tap into an ultra-competitive tax regime. Non-resident allocators are completely insulated from domestic Indian surcharges, benefit from streamlined withholding paths under global Double Taxation Avoidance Agreements (DTAAs), and escape the cumbersome administrative filing systems required of direct onshore retail investors.
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