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| IEOF |
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Launched in May 2003, IEOF is set up as an Investment company in Mauritius, which undertakes investments in Indian capital markets. IEOF has a Category I Global Business License from the Financial Services Commission in Mauritius. IEOF is registered as a 'foreign corporate' sub-account of Deutsche International Trust Corporation (Mauritius) Limited,a Foreign Institutional Investor, registered with the Securities and Exchange Board of India ('SEBI').
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| Class Structure |
IEOFs multi share class structure facilitates creation of segregated managed accounts for ultra high net worth investors including institutions as well as retail unitized (NAV based) offerings designed for retail investors, for example I-Gain and I-Merge. |
IEOF can also facilitate creation of white-labeled retail NAV based fund(s) designed for a designated set of investors with an exclusive term sheet and marketing arrangements. IEOF enjoys participation from a variety of institutional and HNW investors from across Europe, Middle East, Africa and other regions.
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| Tax Benefits |
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IEOF offers a tax efficient route for investors seeking India centric equity investments. The Shareholder in the Fund will not be subject to any withholding tax in Mauritius in respect of:
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| a) Dividends or interest from the Fund |
b) Proceeds from disposal (including redemption)
The investor however, has to pay taxes in the country of domicile as per the applicable laws. IEOF continues to enjoy the benefits of Double Tax Avoidance Treaty between India and Mauritius. |
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| Investor Eligibity |
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However, a Global Business License Company in Mauritius can invest in a similar company in Mauritius. Thus, a fund registered as a Global Business License Company in Mauritius can invest in IEOF . |
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| Following points to be noted: |
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| All eligible investors must: |
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a) Consult the information memorandum of IEOF |
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b) Consult their tax/legal advisor with regard to the investment and the relative tax implications,
as applicable. |
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| Information with regard to specific restriction in offering of IEOF in the US: |
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US - Offer restricted to not more than 99 US persons (whether HNIs or otherwise) under section 3 © (1) of Investment Company Act. |
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| Risk Factors |
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The investment, return and principal value of an investment in the Fund will fluctuate as the prices of the individual securities in which it invests fluctuate, so that the shares when redeemed may be worth more or less than their original cost. |
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Substantially all the Fund's assets will be invested in securities of Indian companies whose securities are denominated in a currency (i.e. Indian rupee) other than the US dollar, which may magnify these fluctuations due to changes in international exchange rates. |
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There is also the possibility of substantial volatility due to various factors including political and economic uncertainties in countries where the Fund may invest.However the prime investment focus for the Fund remains India. |
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These and other India-specific risks are more fully described in the Fund's
Information Memorandum. |
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