New Delhi, Sept. 6 -- Long-short funds, which aim to profit in both rising and falling markets, have found a fresh momentum in GIFT City, India offshore financial hub. Stifled by high taxes at home, fund managers are shifting offshore to take advantage of tax-free derivative income, unlimited leverage, and greater freedom to hedge globally.

The model is drawing keen interest, with 20 such funds having registered in GIFT City as of end July since regulations came in place in 2022. For perspective, India's more established domestic ecosystem only has around 32 such funds till now, according to data from PMS Bazaar.

While the hub offers advantages, the talent pool to run such complex strategies in GIFT City remains shallow, which could be ...