Mumbai: ASK Wealth Advisors is set to raise about Rs 750 crore from wealthy Indians to invest in US-listed new-age companies like Google, Netflix, Facebook, Nike and Amazon through liberalised remittance scheme amid rising demand for overseas assets.
US-based Polen Capital and Scout Investment, which manage billions of dollars, would manage the funds raised by ASK Wealth. The fund is expected to return 11-15% CAGR in dollar terms.
“The idea is to find business which are disruptive with strong brands,” ASK Wealth managing director Rajesh Saluja said. “You don’t find such companies in India. Those companies have much higher growth potential as the US and Europe macro economies are showing signs of improvement.”
“These companies have unique business models with high ROE (return on equity), strong earnings growth momentum and are run by high quality managements,” said Saluja, who is also its chief executive. The time horizon for the investments should be at least five year, he said.
ASK Wealth is primarily aiming to sell the idea to high net worth individuals, who are looking to diversify their portfolios with not much upside in sight in local bourses, he said. The US remains an attractive investment destination as it is the largest consumer market.
The fund will also target those who already have money abroad and wish to create a corpus for the future. Such people could include parents whose children wish to go for studies in the US and want to settle abroad.
The fund will invest in both large-cap and midcap stocks. Subscription will be done through the liberalised remittance scheme. Under this route, Indians, including minors, are allowed to freely remit up to $250,000 per financial year.
But, investors need to consider the tax implications. Dividend income or capital gains earned on redemption of units or shares of the fund is taxable in the same year of receipt. Short-term capital gains are taxable at 30%.
The minimum application amount to the fund is $15,000 (Rs 9.73 lakh) and the minimum additional subscription amount is $25,000.
The ASK Group manages assets of about Rs 40,000 crore. Its wealth adviser arm provides investment advice to affluent families in the country.