Renaissance India Growth Fund – GIFT City Explained Simply

Introduction: Why the Renaissance India Growth Fund – GIFT CITY Matters Today

India is entering a decisive multi-year growth phase, supported by strong macro fundamentals, rising consumption, expanding capital markets, and structural reforms. For global investors, the challenge has always been how to access this growth efficiently, transparently, and in foreign currency.

This is exactly where the Renaissance India Growth Fund – GIFT CITY stands out.

Structured as an open-ended Category III AIF and domiciled in GIFT City (India’s International Financial Services Centre), this fund offers overseas investors, NRIs, institutions, and eligible individuals a professionally managed, USD-denominated route into Indian public equities—without the friction of domestic market constraints.

Backed by a seasoned investment team with decades of experience and a clearly articulated investment philosophy, the fund aims to deliver superior risk-adjusted returns over a full market cycle, not short-term speculation.

Understanding the Renaissance India Growth Fund – GIFT CITY Structure

The RENAISSANCE INDIA GROWTH FUND – GIFT CITY is designed to meet international investor expectations in terms of governance, transparency, and operational efficiency.

Fund Category and Legal Structure

• Category: Open-ended Category III Alternative Investment Fund (AIF)
• Domicile: GIFT City (IFSC), Gujarat, India
• Regulator: International Financial Services Centres Authority (IFSCA)
• Currency: US Dollars (USD)
• Tenure: Open-ended (perpetual)

Being open-ended allows investors flexibility to enter and exit (subject to exit load rules), making it suitable for long-term capital allocation rather than fixed-tenure locking.

Who Can Invest?

The fund is structured primarily for:

• Foreign individuals and institutions
• NRIs and global family offices
• Corporates and eligible investors seeking offshore exposure to India

All contributions and redemptions are USD-denominated, simplifying foreign exchange management and repatriation.

Investment Strategy: How the Fund Invests

The fund follows a Long-Only, Focused Flexi-Cap Equity Strategy, built on disciplined stock selection rather than market timing.

Portfolio Construction

• Number of stocks: Typically 30–35 high-conviction companies
• Market cap allocation:
  • Large caps: Majority allocation
  • Mid caps: Tactical exposure
  • Small caps: Selective and limited
• Cash: Maintained opportunistically for risk management

This balanced structure allows participation in India’s growth while controlling volatility.

Core Investment Philosophy: SQGARP™

The fund uses a proprietary framework called Sustainable Quality Growth at Reasonable Price (SQGARP™), focusing on:

• Businesses with durable competitive advantages
• Companies capable of consistent earnings growth
• Strong balance sheets and governance
• Sensible valuations relative to long-term growth potential

Rather than chasing momentum, the approach emphasizes predictability, quality, and downside protection.

Minimum Investment, Commitment Sizes, and Entry Thresholds

One of the most searched questions around the RENAISSANCE INDIA GROWTH FUND – GIFT CITY is the minimum investment requirement.

Minimum Investment

• Minimum commitment: USD 150,000

This positions the fund as an institutional-grade investment vehicle, not a retail product.

Commitment Tiers

Higher investment commitments unlock lower management fees, making it more cost-efficient for larger investors and family offices.

Fees, Expenses, and Cost Structure Explained Clearly

Understanding fees is critical for long-term returns. The fund offers multiple share classes, each with a transparent cost structure.

Management Fees (Annual)

Depending on the commitment size:

• Ranges from 2.50% at lower commitments
• Reduces progressively to 0.75% or even NIL for certain large commitments

Performance Fees

• Applicable only to select share classes
• 15%–20% performance fee, subject to hurdle conditions where applicable
• Ensures alignment between fund manager and investor outcomes

Operating Expenses

• Capped at 0.50% per annum

Exit Load Structure

• 0–6 months: 5%
• 6–12 months: 3%
• 1–2 years: 2%
• 2–3 years: 1%
• Beyond 3 years: Nil

This structure encourages long-term participation while still offering liquidity.

Ideal Time Horizon: Who Is This Fund Best Suited For?

The RENAISSANCE INDIA GROWTH FUND – GIFT CITY is not designed for short-term trading.

Recommended Investment Horizon

• Minimum: 3–5 years
• Ideal: 7+ years

Indian equities historically reward patient capital, especially when invested through quality-focused strategies.

This fund is best suited for investors who:

• Want long-term capital appreciation
• Can tolerate interim volatility
• Prefer professional active management over passive exposure

Why GIFT City Is a Strategic Advantage

GIFT City is central to the fund’s appeal.

Key Benefits of the GIFT City Route

• Single regulator (IFSCA) for simplicity and clarity
• USD-denominated investments and withdrawals
• Streamlined compliance and onboarding
• Easier repatriation of capital and profits
• World-class financial infrastructure

For international investors, this removes many of the traditional barriers associated with investing directly into Indian markets.

Risk Management and Governance Framework

Risk management is deeply embedded in the fund’s operations.

Key Risks Actively Managed

• Business quality risk
• Valuation risk
• Management execution risk
• Financial leverage risk
• Market volatility risk

Oversight Structure

• Daily internal risk reporting
• Continuous review by the CIO and fund management team
• Monthly investment committee reviews
• Independent fund administration and trusteeship

This multi-layered governance framework enhances investor confidence.

Track Record and Investment Credentials

While past performance does not guarantee future results, the broader Renaissance platform demonstrates:

• Consistent long-term equity investing experience
• Proven ability to outperform benchmarks across market cycles
• Strong emphasis on capital preservation during downturns

The India Growth Fund builds on this foundation with a refined offshore structure.

FAQs About Renaissance India Growth Fund – GIFT CITY

What is the minimum investment in the Renaissance India Growth Fund – GIFT City?

The minimum investment is USD 150,000.

Is the fund open-ended or close-ended?

It is an open-ended (perpetual) Category III AIF.

In which currency do investors invest?

All investments and redemptions are in US Dollars (USD).

What type of equity strategy does the fund follow?

A long-only, actively managed flexi-cap equity strategy.

Is there a lock-in period?

There is no fixed lock-in, but exit loads apply for early withdrawals.

Who should consider investing in this fund?

NRIs, foreign investors, institutions, and family offices seeking long-term exposure to Indian equities.

Conclusion: Is the Renaissance India Growth Fund – GIFT CITY Worth Considering?

The Renaissance India Growth Fund– GIFT CITY is thoughtfully designed for serious long-term investors who believe in India’s structural growth story and want USD-denominated, professionally managed equity exposure.

With:

• A disciplined investment philosophy
• Transparent fee structure
• Strong governance
• Strategic GIFT City domicile

the fund positions itself as a compelling option for investors seeking sustainable wealth creation rather than short-term noise.

For those with the patience to stay invested and the conviction in India’s economic future, this fund offers a robust gateway into one of the world’s most promising equity markets.

Register to download the presentation and schedule a conversation with Kalviro’s investment advisors.