Tax Benefits Spur Growth of Long-Short Funds in GIFT City

Imagine some money managers who make money from stocks going up (long) and going down (short).

They're moving to a special city in India called GIFT City because it has good tax rules for them.

This means they can potentially avoid paying taxes on their profits and use more money to make more investments.

Also, they can borrow as much money as they want for their investments, and hedge globally without restrictions.

But, there aren't a lot of experts in this city to help manage these complex investments.

While similar funds in India also exist, those funds face more taxes.

So, the special tax benefits of GIFT City are very attractive for these kinds of funds.