Tata Asset Management launches feeder fund to open retail investment in India’s stock market
For the first time, Non-Resident Indians (NRIs) and foreign nationals will be able to invest in Indian equities with a minimum investment of just $500. Tata Asset Management is set to launch its new Dynamic Equity Fund on Monday, September 22, opening a retail investment gateway for overseas residents in India’s booming stock market, reported gujaratsamachar.com.
The $500 feeder fund lowers the entry barrier for global retail investors.
The feeder fund will pool investments from NRIs and foreign nationals and channel them into Indian mutual fund schemes. Currently, the minimum requirement for alternative investment in Indian equities stands at $150,000 (₹1.32 crore), limiting access to high net-worth individuals.
“Our fund opens an opportunity for people categorised as retail,” said Abhinav Sharma, International Business Head, Tata Asset Management.
However, regulatory norms still pose onboarding challenges. Unlike in India, foreign investors must undergo physical verification by distributors, and application forms must be physically signed and sent to the fund house. Tata Asset Management has sought approval for digital verification, which remains under regulatory consideration.
Sharma added that the fund has already generated strong interest, with expectations of raising $300–400 million in assets under management (AUM) over the next six months. The company also inaugurated its office in Gift City, Gandhinagar, and plans to shift inbound funds currently operating from Luxembourg and Mauritius to the new centre.
