It’s a long shot, but asset management companies (AMCs) are trying everything to lure fund managers into swapping their Bandra Kurla Complex offices for a new life in an upcoming financial hub about 500 km away.
AMCs are offering pay hikes, relocation perks and faster career tracks to coax fund managers into moving to GIFT City, where talent remains hesitant to move.
The push comes as regulators tighten norms on keeping an on-ground presence in the International Financial Services Centre (IFSC), forcing fund houses to ensure that key personnel are physically based in GIFT City (Gujarat International Finance Tec-City). But attracting experienced fund managers has proved to be difficult, with AMCs competing for a limited talent pool.
"Fund managers, if they have to move to GIFT City, are likely to ask for a salary hike. Incomes may increase 50-60% if a fund manager relocates as there is a shortage of talent willing to operate out of GIFT City,” said Niteen D, director and chief executive officer – GIFT City IFSC business at Anand Rathi International Ventures IFSC.
The reluctance to move has led to creative compensation structures. Fund managers are seeking relocation-linked perks as part of their compensation packages, including moving allowances and support for family-related needs.
"Fund managers are innovative in their negotiations, asking for moving allowances which can range from ₹20 lakh to ₹30 lakh. They also sometimes ask for their child's one-year school fees or ask the AMC to help with finding a school for their child when negotiating the perks they would get for moving to GIFT City,” said Siddarth Pai, founding partner, chief financial officer, and environment, social and governance officer at 3one4 Capital.
He added that a six-figure salary can be increased to a seven-figure income when moving to GIFT City, considering the opportunity. This compares to a 10-20% salary hike given to a fund manager at the time of hiring in Mumbai.
Qualified managers
According to a fund manager who is now based in GIFT City, there are other aspects that make shifting to GIFT City harder.
“Few fund managers have the required qualifications that AMCs are looking for while hiring for GIFT City. This includes a post-graduation in finance along with some certifications such as CFA,” the fund manager said on condition of anonymity.
AMCs have even turned to hiring people who would be more willing than others to move to another city, including those based in nearby Ahmedabad or with family in Gujarat.
"It is easier to convince fund managers who have family or a spouse in Ahmedabad or have spent some part of their childhood in the city. We also look for young professionals who do not have a family or spouse and can move to GIFT city and make a life for themselves there,” said Saurabh Mukherjea, founder and chief investment officer at Marcellus Investment Managers.
“Choosing people who have family ties in Gujarat is an easy way to hire for a fund’s GIFT City operations. That said, a growing number of fund managers are open to moving as the region continues to expand,” the fund manager said.
The perks are being included in compensation packages because regulatory requirements have added urgency to hiring. The norms are applicable only to AMCs that have an active fund in GIFT City and not those operating feeder funds. A feeder fund is one that invests in existing funds operated by an AMC and does not require active fund management.
"The regulator wants all employees of a fund management and all the regulated entities in GIFT City ecosystem to operate out of GIFT City premises. This is a fair ask and also a way to develop the ecosystem. Currently, there are entities who have placed one or two employees in GIFT City while the rest of the operations are handled from other parts of the country,” said Niteen D from Anand Rathi.
Regulatory requirements
"If an AMC wishes to establish operations in GIFT City, they will need one fund manager, a compliance officer and a principal officer in its office. As of now, every AMC outside of GIFT City has about 4-5 fund managers managing about 25 schemes. The requirements will be less in GIFT City due to a fewer number of schemes, or it depends upon the kind of licences and fund strategies launched by the AMC,” he added.
Fund managers have been reluctant to move to GIFT City because it requires them to relocate, often with their families. This proves cumbersome for many of them who live in the country’s financial capital, Mumbai.
"Any new jurisdiction takes time to attract the requisite talent. When opportunities increase, talent will also increase. Senior management and fund managers may not want to relocate immediately as they have a family and are settled in another city… They are more likely to move if given a better growth prospects and a more senior position with decent hikes,” said Vaibhav Shah, head of business strategy, products and international business at Mirae Asset Investment Managers.
"AMCs are providing housing to fund managers to make the move more convenient. Stay in such housing can be extended according to the fund manager's convenience while the rent is paid by the company. For someone moving to GIFT City from Mumbai, the rent outflow becomes zero, which is a relief. In some instances, fund managers are given studio apartments with complimentary food as well," said a GIFT-City based fund manager on condition of anonymity.
There are over 190 fund management entities in GIFT City that together operate 310 funds, five investment advisers and 25 portfolio managers, according to a December 2025 report by HSBC and Ernst and Young (EY). Fund management entities have raised commitments of $26.3 billion, according to a government press release in November last year.
Key personnel
As per regulations, registered fund management entities pooling money from investors must appoint a principal officer and a compliance officer and ensure that these key management personnel are based in the IFSC. For retail-focused entities, an additional key management person responsible for fund management must be appointed before launching schemes.
“Hiring a fund manager and asking them to relocate to GIFT City is an extra load for all of us. There is a shortage of fund managers, so it took us six months to hire someone. They are brought up in a certain city and now they have to completely uproot and move to another city. Companies also sometimes hire someone in Gujarat while the fund manager sits in another city, the fund manager then instructs the employee in Gujarat on how to manage the fund,” said an AMC executive looking to start another fund in GIFT City.
GIFT City allows AMCs to set up a range of offerings including alternative investment funds, portfolio management services, investment advisory and family investment structures, while enabling both inbound and outbound investment flows under a tax-efficient regime benchmarked to global financial centres.