Marcellus to Launch Global AIF in February for Diversification

Marcellus Investment Managers is gearing up to launch a Global Alternative Investment Fund (AIF) in February, aiming to offer Indian investors enhanced portfolio diversification opportunities. This new initiative will focus on capturing the growth potential of global equities, with a particular emphasis on the US market.

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The Appeal of the US Market

Arindam Mandal, Global Equities Head at Marcellus, shed light on the attractiveness of the US market. Highlighting its strong talent pool and robust economic fundamentals, he said, “The US market offers a fertile ground for investments, especially in companies that are undervalued but have strong fundamentals.” Mandal cautioned investors against the temptation of chasing high-profile stocks, advising a more disciplined and fundamentals-driven approach.

Addressing Existing Investment Limitations

The fund aims to address key limitations in the Indian investment landscape. One major barrier is the Reserve Bank of India’s $7 billion cap on mutual fund investments in overseas equities, which restricts Indian investors’ ability to diversify globally. Mandal explained, “Given the existing capital controls and limitations, there is a pressing need to explore global equities. To bridge this gap, we’ve already created a Portfolio Management Service (PMS) in Gift City, and the AIF launch will follow in the coming months. This will enable Indian investors to participate in global markets seamlessly.”

A Balanced Approach to Investments

Marcellus continues to remain optimistic about the long-term prospects of the Indian market. However, the firm has advised caution regarding overvalued sectors, such as capital goods. It encourages investors to focus on private sector banking, IT, and pharmaceuticals, which present a more favorable valuation landscape.

Gubbi, a senior representative from Marcellus, emphasized the importance of diversification and rebalancing. “Investors need to be mindful of asset cycles and the benefits of uncorrelated investments. A balanced portfolio, combined with systematic rebalancing, is key to achieving superior long-term returns.”

Embracing International Opportunities

The launch of the AIF signifies Marcellus’ commitment to helping Indian investors navigate an increasingly globalized investment environment. While domestic markets offer considerable opportunities, the inclusion of global equities introduces an essential layer of diversification that can help mitigate risks and enhance returns over time.

By strategically positioning themselves in Gift City, Marcellus is leveraging a regulatory framework conducive to international investments, allowing Indian investors to benefit from global equity markets while remaining compliant with Indian regulations. With this, the firm seeks to empower investors to maximize value in a world where cross-border investments are becoming increasingly critical.

As global economic trends continue to evolve, the launch of this AIF highlights Marcellus’ forward-thinking approach, aligning with investor needs and the broader vision of creating wealth through informed, disciplined strategies.