Post the 2008 financial crisis, we thought valuations all over the world, especially in the US, were mouth-watering. A mutual fund structure would allow us to participate in oversees securities in a tax-efficient and simple manner. We thought that long-term capital gains tax would be reintroduced and that the MF structure would work better than a PMS. In a PMS structure, the investor will be taxed on every buy and sell transaction. The ease of onboarding clients and scalability of the MF structure were other reasons to transition to being an MF in 2013.

Source: Mint June 11, 2020 20:26 UTC