Securities trading firm, Dolat Capital has forayed into AIF business by launching Category III AIF Dolat Absolute Return LLP.
The company has set up AIF in LLP structure to offer favourable tax treatment to investors. Currently, income earned by the fund is taxed at 34.94% in LLP structure as against 42.74% in trust. The company claims that it has launched India’s first category III AIF in LLP structure.
Further, the fund aims to generate stable returns irrespective of equity and fixed income market conditions by implementing a variety of derivative-based trading strategies. The company claims it can deliver CAGR of 12-14% in the long term.
The company aims to raise Rs.250 crore in the initial tranche.