Tata AMC exits Cat III AIFs amid tax pressure, SIF competition

Tata Asset Management Company has shut down its Category III alternative investment fund (AIF) business, citing unfavourable taxation and stiff competition from specialised investment funds (SIFs).Tata AMC entered the Category III AIF space in 2019 with its Absolute Return Fund, a conservative long-short strategy. In 2020, it launched the Equity Plus Absolute Return Fund. Both vehicles offered hedge fund-style strategies, long-short equity with limited leverage, targeted at high-net-worth investors.