FAQ - India’s first Blockchain, Crypto and Digital Assets Fund

A. The fund is not regulated by any regulator as on date. The Fortuna Digital Asset Fund is proposed to be managed by M/s Fortuna Capital, an entity which is not regulated by SEBI

A. Domestic (Indian) high net worth individuals, non-resident Indians, foreign nationals, family offices, institutions, sole proprietorship firms, HUFs, limited companies, LLPs (by way of loans), foreign funds or other foreign legal entities, and corporate investors.

A. The investor has to satisfy the mandatory KYC requirements as prescribed under laws by providing the documents like PAN card, address proof etc., sign the Contribution Agreement (which will detail the amount you are committing to invest, fees, and performance linked fees amongst other things) and risk disclosure. The details of KYC documents required by each category of contributors’ i.e Individual, HUF’s, Corporate etc. are mentioned in the Contribution Agreement.

A. The minimum commitment amount is Rs. 25 lacs

A. The Fund Manager is entitled to receive a success-based fee based on the returns generated. This is calculated on a high watermark basis. Profit sharing of success-based fee is given in detail in the contribution agreement.

A. There will be a lock-in period of 3 years. Post this period, you can withdraw the funds with a 30 days notice to us.

A. There is no assurance provided by the Fund Manager to the protection of capital or guarantee of returns. The Fund presentation and other Fund documents provide details of the past experience of the Fund management team, investment thesis, personal track record etc. The investments will be made primarily in digital assets that are an upcoming asset class, but do carry an inherent risk. Typically these investments are characterized as “high risk” by financial advisors. In general high-risk investments are also associated with higher returns. You should seek investment advice from your financial advisor before making your investment decision in this Fund.

A. We strongly advise you to commit only such monies to the Fund which are surplus to you in the medium to long term. We can however facilitate sale / transfer of the units if such contributor finds a buyer for his/her units. Such transfer will be subject to the buyer being legally and financially capable (as determined by the Fund Manager) of honouring the transferor’s obligations, satisfying KYC requirements and executing a deed of adherence accepting the terms and conditions of the Fund agreements.

A. The Fund Manager will provide you with quarterly newsletters detailing the investment portfolio and progress of portfolio companies. Fund NAV will be made available to you on a quarterly basis and Audited Financial Statements of Fund on yearly basis. A valuation exercise of the portfolio from an independent valuer of repute appointed by the Fund Manager will be conducted on a periodic basis.

A. The Budget 2022 had the following announcements regarding taxation of Digital Assets:

1. Crypto currencies have now been included in the Virtual Digital Assets definition.
2. Income from transfer of digital assets such as crypto will be taxed at 30%+cess and Surcharge. The Cost of Acquisition being the only allowable deduction.
3. The loss on sale of digital assets cannot be set off against any other income nor allowed to be carried forward to subsequent tax years.
4. To regulate and capture details of the transactions, tax shall be deducted (TDS) @1% on payment made to the seller of crypto currency by crypto exchange or any other payer, if the total payment during the tax year is above INR 10,000. The threshold limit for TDS would be INR 50,000 a year for specified persons which include individuals and HUFs who are required to get their accounts audited under the income Tax Act, These provisions are applicable from July 1 2022 primarily requires the crypto exchanges to deduct taxes whenever required.
5. Gifting of digital assets will also be taxed in the hands of the receiver. The taxability will arrive only if the value of the Virtual Digital Asset exceeds INR 50,000 but there will be no tax liability in case of receipt of such assets through a relative as defined under the tax law on the occasion of marriage, etc.
6. The Income Tax forms from April 1, 2022 have a separate column for making disclosures on gains made from crypto currencies and paying taxes.
7. Virtual Digital Assets (VDA) are now a part of Moveable assets under income tax Act Sec 56(2)(x).