SmartOwner Capital Growth Fund I

SMARTOWNER CAPITAL GROWTH FUND I
FAQ - U.S. Investors

1. Who can invest in the fund?
If you are an investor from the United States of America, we check for your Accredited
Investor status, without which you will not be able to participate in our offering. You
meet the criteria to be an Accredited Investor if you
- earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of
the prior two years, and reasonably expect the same for the current year, OR
- have a net worth over $1 million, either alone or together with a spouse (excluding the
value of your primary residence.), OR
- are investing through an entity that qualifies, typically with assets in excess of $5 million.

2. What is the tax status of the fund?
The Fund has a pass through status with respect to interest, dividends and capital gains
and all income of the Fund will be taxable in the hands of the Contributor.

In the case of non-resident or foreign Contributors, the Fund is liable to deduct tax at the
rates in force (tax rates applicable to the Contributor under the Income Tax Act and/or
the relevant Double Tax Avoidance Agreement, as the case may be, subject to availability
of relevant documents as per applicable law.)

3. I am a non-resident Indian. After my investment, if my status as NRI changes in any
year to Resident Indian, then how will taxes be applied?
The Contributor has to inform the Investment Manager of the change in writing in the
same financial year, based on which the Contributor’s taxability will be reevaluated.

4. I am not a resident of India and I do not have an Indian tax ID number (PAN). Is there
a way for me to invest without it?
Non-Indian, including foreign corporations and partnerships, residents are allowed to
invest directly in the AIF provided they have an Indian tax ID number, called a PAN
number. For those investors who wish to participate without a PAN number or Indian
tax filing obligations, there is another route which is to invest into a foreign entity that will
in turn invest in the AIF and comply with the Indian tax obligations. Please ask us for
further details.

5. How would the payouts to US investors be remitted?
All the investments in and receipts from this fund are in INR. Payouts to investors will be
made directly into their designated bank accounts in INR, which may be converted to the
local currency as per the prevailing foreign exchange rates.

6. Will the fund be considered a PFIC with respect to U.S. investors?
No. The fund is treated as a partnership under the Form 8832 election. Therefore, the

fund will be a pass-through entity and U.S. investors will be taxed on their share of the
fund's income and capital gains.

7. What is the benefit of investing via SmartOwner Capital Growth Fund 1 as a foreign
investor?
Access to investment opportunities in a large sector of the fastest growing major
economy of the world.

8. Can NRIs and PIOs invest in SmartOwner Capital Growth Fund 1?
Yes.

9. From which account can NRI/PIOs invest?
Investments for the units of AIF acquired by a person resident outside India shall be
made by an inward remittance (wire transfer) through the normal banking channel
including by debit to any NRE / NRO account.

10. If at the time of investment the NRI had invested through his NRE/NRO account and
thereafter his status as non-resident changes, then how would the drawdowns take
place? Would it need to necessarily continue from the account where the initial
investments were made?
In such cases the investor needs to inform the Fund about the change and provide
necessary supporting documents so that the information can be updated. Thereafter,
the Fund will accept drawdowns from the bank account that the investor maintains at
the time.

11. Which address should be included in the application form?
Communication address can be any address preferred by the investor, Indian or foreign;
the permanent address of an NRI should be an overseas address.

12. To which account will payouts – remittance of distribution and capital from the fund
be made for NRI contributors?
If the contribution to the Fund is made from an NRE account, then the payout can be
made to both NRE and NRO accounts, as per your choice. For contributions made
through an NRO account, the payout can be made to an NRO account.

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