high-conviction investing
"Unlocking Superior Returns with Innovative Investment Solutions"
Delivering Value Through Alternative Investment
SEBI Registration No. IN/AIF3/23-24/1426
AIF Category III (3)
Investment Committee Head Satwik Jain
Alternative Investments – The world of new opportunities
Alternative investments provide a much broader set of opportunities never accessible for traditional investors. It has become crucial that significant investors (Ultra High Net Worth Individuals, institutions, insurance companies or family offices) look for different investment solutions to create alpha.
Here at Generational Capital Alternative Investments, we are dedicated to rolling out fresh opportunities that balance the demands of segments previously left unconsidered. The same confirms it our flagship, the Generational Capital Breakout Fund 1. Targeting up to above market returns and consistent alpha against traditional investment options, this fund highlights robust capital gains competitiveness. We strive to offer cutting-edge investment solutions for our discriminating investors.
Generational Capital Breakout Fund 1,
We are pleased to present the Generational Capital Breakout Fund 1, designed for discerning investors seeking sustainable, above-market returns. Here’s why this fund is a compelling choice:
- Proven Performance: Since its inception in March 2024, the fund has delivered a remarkable 38.68% return over six months, significantly outperforming its benchmark, the Nifty 500. This impressive performance comes amid a period of market volatility and mixed economic signals.
Market Context: During the six-month phase from March to October 2024, the broader Indian equity markets experienced significant fluctuations. Early in the year, inflationary pressures and global economic concerns led to cautious investor sentiment. Despite these challenges, the domestic market showcased resilience, driven by robust corporate earnings in select sectors and steady foreign inflows. The Nifty 500 saw uneven growth, with certain sectors lagging due to global economic headwinds and tighter monetary policies.
However, the Generational Capital Breakout Fund 1, managed by our founder Satwik Jain, capitalized on key trends and opportunities in emerging and monopolistic sectors, enabling it to navigate through these uncertainties effectively. The fund’s strategy of identifying capital-efficient franchises with high reinvestment potential paid off, securing substantial gains even when broader indices faced headwinds.
Fund Manager
- Satwik is a global investor trying to identify major wealth creation trends, monopolistic and fast growing capital efficient franchises with reinvestment runways run by able and minority friendly management.
Need Help?
What is an Alternative Investment Fund (AIF)?
Alternative Investment Fund or AIF means any fund established or incorporated in India, which is a privately pooled investment vehicle, which collects funds from sophisticated investors, whether Indian or foreign, for investing it in accordance with a defined investment policy for the benefit of its investors.
Generational Capital is one of India’s leading Portfolio Management Services (PMS) and AIF with fruitful performance track record.
What are the different categories of AIF?
Applicants can seek registration as an AIF in one of the following categories, and in sub-categories thereof, as may be applicable:
Category I AIF:
AIFs which invest in
- Venture capital funds (Including Angel Funds)
- SME Funds
- Social Venture Funds
- Infrastructure funds
which the government or regulators consider as socially or economically desirable.
Category II AIF:
Various types of funds such as real estate funds, private equity funds (PE funds), funds for distressed assets, etc., are registered as Category II AIFs.
Category III AIF:
AIFs can pursue multi-asset class strategies and have the flexibility to employ diverse investing / trading strategies in accordance with their stated investment policy in their offer documents. Such AIFs may undertake leverage that includes positions in listed or unlisted derivatives within limits prescribed by SEBI regulations.
Generational Capital currently manages Category III AIFs with underlying investments in listed Equity . While the equity AIFs target long term capital appreciation, which also participates in event arbitrage opportunities, strives to generate stable above average consistent returns with low volatility.
Who can offer AIF management services in India?
AIF management services can be offered only by SEBI registered entity under SEBI (Alternative Investment Funds) Regulations, 2012.
Who is an ideal AIF investor?
The specialised investment solutions provided by Alternate Investment Funds typically cater to a niche segment of Ultra-high net worth clients. These clients can be individuals or Institutional entities who require a dedicated investment management service.
The AIF platform is ideal for investors who:
- Seek to invest in asset classes like equity, fixed income, structured products, etc.
- Value a highly customized investment management solution
- Are discerning and appreciate a high level of client service
- Require investment advice for long-term wealth creation
What is the minimum or maximum investment in our AIF?
The statutory minimum investment size is INR 1Cr.
At Generational Capital Invesement, there is no maximum investment limit into an AIF.
What returns can I expect from an AIF?
As per the AIF regulations prescribed by SEBI, we cannot guarantee a specific rate of return. However, the investment objective of any AIF Manager is to outperform the benchmark indices.
At Generational Capital Investments, each investment strategy has consistently outperformed respective benchmark indices over the years.
How often can I view my NAV, positions and transactions undertaken in my account?
The NAV is calculated monthly by Our fund accounting team. The Fund Management team also shares the Fund’s asset allocation, return attribution, top holdings and liquidity information fact sheet on a monthly basis followed by a more detailed quarterly review with the unitholders. The Annual Report is sent to the unitholders typically within 3 months from the end of the financial year.
What is my tax liability under the AIF?
Generational Capital Breakout Fund 1 funds are structured as determinant trusts. The tax is paid at the fund level and returns to the client are post-tax basis. Profits in the AIF are taxed at applicable capital gains tax rates as regards equity and market-linked instruments and at Maximum Marginal Rates for income from other sources like interest, dividends, processing fees etc.
Can NRIs avail of the AIF Services?
The AIF platform permits investments by all Indian nationals, resident or otherwise. NRI’s (except USA and Canadian Nationals) can also invest in AIF. Unlike PMS, there is no need for NRI’s to open a PIS account. However, it depends on the fund structure to accept funds from both NRE and NRO accounts.
Who do I call in case of any queries on my AIF portfolio?
- If a client has been introduced by a wealth manager or RIA, he would typically call his RM in the introducing firm and reach out to Generational Capital Investments as a second step if he requires further assistance.
- Generational Capital Investments provides its clients unrestricted and continuous access to its Relationship Managers who interact with clients on a regular basis for day-to-day requirements.
- However, in case of any specific requirements that arise, contact details of senior management at Generational Capital Investments, including the Chief Investment Officer, are made available in the welcome letter sent to clients.
