Mirae Asset’s new GIFT City fund offers exposure to global AI, semiconductor boom

Mirae Asset Investment Managers (India) has launched a new investment fund based in GIFT City, Gujarat, to allow investors to put their money into global markets and promising international themes like artificial intelligence and semiconductors.

The fund, called the Mirae Asset Global Allocation Fund, is designed to help investors grow their wealth over the long term by investing mostly in overseas exchange traded funds, or ETFs, the investor noted in a release. These investment products track groups of companies or markets, such as the US stock market or fast-growing sectors like AI technology.

Mirae Asset aims to raise $200 million for the fund, with the option to accept another $200 million if there is strong demand.

To participate, investors need to commit at least $151,000, although resident Indian individuals can invest smaller amounts (up to $250,000 per year) through the Reserve Bank of India’s Liberalized Remittance Scheme (LRS).

The fund plans to invest 90% to 100% of its money in global ETFs, spreading bets across major stock markets such as the US and China, as well as fast-evolving industries like artificial intelligence and semiconductors.

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“Our latest offering is designed to provide investors, predominantly resident investors, an avenue to take exposure in global markets and promising themes (AI, Semiconductor) through GIFT City investing route,” said Vaibhav Shah, Head of Products, Business Strategy & International Business at Mirae Asset Investment Managers (India).

“We have seen that by spreading investments across global markets and themes, investors are able to generate better risk adjusted returns and diversify their investments beyond the home country.”

Based in GIFT City, India’s international financial services hub in Gujarat, the Mirae Asset Global Allocation Fund is known as an outbound fund. This means it’s specifically built for Indian investors who want to send their money abroad and invest in international assets. Mirae Asset, which manages more than $600 billion globally, opened its office at GIFT City in 2023.