Not the same as Marcellus Global Equities Fund of Funds. Marcellus has two separate global investing products at GIFT City. The
Marcellus Global Equities Fund of Funds is a retail mutual fund accessible to all investors. The
GCP (Global Compounders Portfolio) on this page is a separate PMS product — higher minimum (USD 75,000), concentrated stock picking (35–40 stocks vs. MF's fund-of-funds wrapper), performance-linked fee options, and direct securities ownership. Same investment philosophy, different product structure and target investor.
ℹ What is a Portfolio Management Service (PMS)?
A PMS is fundamentally different from a mutual fund or AIF. Key structural points:
- Direct ownership: You own the underlying securities directly in a demat account — you are not buying units of a fund. Your portfolio is yours, not pooled with other investors
- Discretionary management: Marcellus manages your portfolio with full discretion — buy/sell decisions are made by their fund managers without per-trade approval. You get statements and reporting, not day-to-day control
- No lock-in at Marcellus GCP: You can terminate the PMS agreement and redeem at any time, with no exit load. This is more flexible than a close-ended AIF
- Tax filing is yours: In a PMS, each security transaction creates a capital gain event taxed in your hands. You (or your CA) file the ITR with all gains/losses — the PMS does not pay tax on your behalf
- GST applies: All management and performance fees are subject to 18% GST for resident Indians
Portfolio Overview
| Fund Management Entity | Marcellus Investment Managers (IFSC) Pvt. Ltd. |
| IFSCA Registration | IFSCA/FME/III/2022-23/037 |
| Product Type | Portfolio Management Service (PMS) — Discretionary |
| Direction | Outbound — invests in global equities (North America + Europe) |
| Investment Universe | Large and mid-cap companies in North America and Europe with durable competitive advantages |
| Portfolio Concentration | 35–40 stocks (high conviction, concentrated) |
| Investment Style | Quality compounders — companies with consistent high ROCE, clean accounting, and long growth runways |
| Currency | USD |
| Minimum Investment | USD 75,000 |
| Lock-in | None — exit at any time |
| Entry / Exit Load | Nil |
| High Water Mark | Yes — performance fee charged only on net new gains above prior peak |
| Inception Date | October 31, 2022 |
| Holding Structure | Joint holding recommended — reduces US estate tax risk for single-holder portfolios |
Fee Structures — Three Options
Marcellus GCP offers three fee structures. Choose based on your return expectation and preference for certainty vs. alignment with performance:
Fixed Only
Option 1
Management Fee2.00% p.a.
Performance FeeNil
Hurdle RateN/A
Performance Only
Option 2
Management Fee0% (nil)
Performance Fee20% above 5%
Hurdle Rate5% p.a.
Hybrid
Option 3
Management Fee1.00% p.a.
Performance Fee15% above 9%
Hurdle Rate9% p.a.
How to choose: Option 1 (2% fixed) is predictable — you pay the same regardless of performance. Option 2 (0% + 20% perf above 5%) aligns Marcellus's incentive with yours — they earn only if you earn beyond 5%. Option 3 (1% + 15% above 9%) balances both. All fees subject to 18% GST for resident Indians. High water mark applies to performance fee — if the portfolio falls, Marcellus earns no performance fee until it recovers past the prior peak. Source: Marcellus GCP deck, May 2026.
Strategy — Quality Compounders: The Same Philosophy, Applied Globally
Marcellus GCP applies the same investment philosophy behind their well-known India portfolios (CCP, Rising Giants) to a global universe. The core thesis: a small number of extraordinary businesses compound wealth over decades if held without interruption. These are companies with wide moats, consistent returns on capital, and pricing power that cannot be replicated by competitors.
The universe is North America and Europe — large and mid-cap companies with the following characteristics:
- Consistent ROCE (Return on Capital Employed) above cost of capital over 10+ years
- Clean accounting — no aggressive revenue recognition, minimal off-balance-sheet risk
- Long reinvestment runway — the ability to redeploy profits at high returns for 10–20 more years
- Pricing power — the ability to raise prices without losing market share
- Low capital intensity — earning high returns without requiring constant capex infusion
The portfolio is concentrated at 35–40 stocks. This is intentional: Marcellus's philosophy treats diversification as risk mitigation for uncertainty, and their high-conviction approach reduces uncertainty by selecting only the most well-understood compounders. In their India portfolios, concentration has historically been a source of alpha, not just risk.
Geographic focus: The GCP is not a global index in disguise. It targets quality businesses across North America and Europe — the regions where Marcellus's global research team has deepest analytical capability. Emerging markets (including India) are explicitly excluded from this portfolio; GCP is for investors who want a separate, standalone global compounders allocation.
Sector Allocation (April 30, 2026)
16.4%
Information Technology
8.2%
Communication Services
4.7%
Consumer Discretionary
Industrials at 35.3% is the standout allocation — far above most global equity benchmarks, which typically carry 10–15% industrials. This reflects Marcellus's conviction that industrial compounders (specialised equipment, testing & measurement, professional services infrastructure) have the most durable competitive advantages: high switching costs, recurring revenue, and limited technology disruption risk compared to consumer tech. IT at 16.4% is below the S&P 500's ~30% tech weight — the GCP explicitly avoids crowded mega-cap tech positions in favour of quality businesses with more durable moats. Source: Marcellus GCP deck, May 2026.
Performance — Up Market and Down Market (USD, Gross)
Marcellus presents GCP performance in two distinct market phases from inception, rather than single annualised returns. This is their framework for evaluating quality investing: capture more on the way up, lose less on the way down. The portfolio has been live since October 31, 2022.
Up Market · Oct 2022 – Feb 2025
Marcellus GCP
+70.2%
S&P 500
+61.4%
Down Market · Feb 2025 – Apr 2025
Marcellus GCP
–11.7%
S&P 500
–17.3%
The GCP outperformed in the up-market phase (+70.2% vs +61.4%) and protected better in the down-market phase (–11.7% vs –17.3% for the S&P 500). The down-market comparison is particularly significant: a portfolio that falls less in corrections preserves the compounding base more effectively than one that falls further and must recover from a lower base. Note that performance is gross — before deducting Marcellus's management and performance fees and 18% GST. Net returns will be lower by the applicable fee structure. Source: Marcellus GCP deck, May 2026. Returns are in USD. Benchmark used is the S&P 500. Past performance is not indicative of future results.
Investment Team
The GCP is managed by Marcellus's dedicated global equities team based across the US and GIFT City. This is a distinct team from Marcellus's India equity teams — with deep analytical coverage of North American and European markets:
Arindam Mandal
Head of Global Equities, United States
Leads the GCP strategy from the US. Deep expertise in North American equity compounders.
Jaibir Sethi
Head of Global Research
Oversees research process across the global universe. European and cross-sector coverage.
Prashant Mittal
Fund Manager
CFA, ISB, IIT background. Core portfolio construction and execution.
Kalpesh Soni
Principal Officer, GIFT City
Leads operations, compliance, and investor servicing from GIFT City IFSC.
Kumar Mayank
Analyst
CFA Level III. Global equity research and model-building.
Manik Kalra
Analyst
CFA. Prior experience at Fidelity — institutional-grade global equity research.
Source: Marcellus GCP deck, May 2026. Team composition reflects the May 2026 deck; verify with Marcellus for any subsequent changes.
Tax — PMS Investors File Directly
PMS taxation works differently from a mutual fund — each individual security transaction creates a taxable event in your name, not at the fund level. Key points for resident Indian investors:
| LTCG (holding > 24 months) | 12.5% plus applicable surcharge |
| STCG (holding ≤ 24 months) | Highest applicable slab rate (up to 30%) plus surcharge |
| Tax filing | Investor files ITR directly with all PMS transactions (PMS provider gives detailed trade statements) |
| TCS on LRS | 20% TCS deducted on LRS remittances above INR 10 lakh/year — fully refundable via ITR |
| GST on fees | 18% GST applies to management and performance fees for resident Indians |
| Joint holding benefit | Recommended — reduces US estate tax risk for single-holder portfolios holding US securities |
US estate tax risk note: Non-US persons (including resident Indians) who hold US securities directly can face US estate tax on the US-situs assets at their death. Marcellus recommends joint holding as a partial mitigation. Consult your CA or legal advisor for estate planning appropriate to your situation. Source: Marcellus GCP deck, May 2026.
Tequity's Analysis
Marcellus's Global Edge: When Quality Investing Meets Global Scope
Marcellus has earned credibility through their India quality compounders philosophy — CCP, Rising Giants, and Consistent Compounders have a known track record of delivering alpha through concentrated, disciplined quality investing in India. The GCP applies this same methodology to North American and European equities.
- The investment philosophy has genuine global applicability: Quality compounding businesses — high ROCE, pricing power, clean accounting, long growth runways — exist across markets. The same analytical rigour that identified durable compounders in India (Asian Paints, HDFC Bank, Pidilite) can be applied to global analogs. Marcellus's global team in the US and UK has the local knowledge to identify these.
- Industrials at 35% is a deliberate differentiation: This is the starkest signal that the GCP is not a closet S&P 500 tracker. The S&P 500 has ~30% in information technology — the GCP has ~16%. The S&P 500 has ~10% in industrials — the GCP has 35%. This is a genuine active bet that industrial compounders (specialised testing, measurement, industrial automation, niche professional services) will outperform over time. This is a view to evaluate carefully before investing.
- The up/down market evidence is encouraging but short: The portfolio has lived through exactly one major up cycle (Oct 2022–Feb 2025) and one significant down (Feb–Apr 2025, the tariff shock). The up-market outperformance (+70.2% vs +61.4%) and down-market protection (–11.7% vs –17.3%) are exactly the pattern a quality compounder strategy should show — but ~2.5 years of track record is short. The real test is a full market cycle, including a prolonged bear market or a recession environment.
- USD 75K minimum and no lock-in: the most accessible GIFT City PMS: Compared to Mirae's USD 151K close-ended AIF commitment or Baroda's USD 150–250K, the Marcellus GCP's USD 75K minimum with no lock-in is structurally more accessible. Investors can start, build, and adjust their position over time without being locked in for 3 years.
- Fee structure selection matters: At Option 2 (0% management + 20% performance above 5%), Marcellus earns nothing if your portfolio doesn't cross 5% p.a. — total alignment. If the GCP delivers 15% p.a., they take 20% of the 10% above the hurdle = 2% effective fee. Option 1 at 2% fixed is simpler but expensive in high-return years. Model your expected return scenario before choosing. We will run these numbers with you.
- The US estate tax risk is real and often overlooked: Joint holding recommendation is a genuine, important piece of advice from Marcellus. Single HNI investors holding US securities through a GIFT City PMS are exposed to US estate tax on those assets at death — potentially at rates up to 40% on the US-situs portion. This is not a theoretical risk. Get your CA or legal advisor to review the holding structure before investing.
Tequity's position: The Marcellus GCP is suitable for HNI investors who understand and believe in the quality compounders philosophy, want active global equity management (not just index exposure), and prefer the flexibility of a no-lock-in PMS over a close-ended AIF. The industrials overweight is a distinctive active bet — worth understanding and consciously accepting before investing. We will walk you through the fee structure comparison, LRS planning, holding structure, and how this fits alongside other global products you may hold.
Frequently Asked Questions
What is the difference between Marcellus GCP and the Marcellus Global Equities MF?+
These are two separate products serving different investor profiles. The Marcellus Global Equities Fund of Funds (retail MF) is accessible to any investor via a standard SIP or lump sum, with no minimum beyond the AMC's requirement. It invests in a basket of global equity funds (fund-of-funds structure), providing diversified global exposure within a SEBI/IFSCA mutual fund regulatory framework. The GCP (this page) is a PMS product — minimum USD 75,000, you own individual securities directly, Marcellus manages a concentrated 35–40 stock portfolio on your behalf, and you have performance-linked fee options. The GCP is Marcellus's full-conviction global compounders strategy; the retail MF is a more broadly diversified, accessible entry point. For most investors, the retail MF is the starting point; the GCP is for committed HNI investors who want Marcellus's active stock-picking in global markets.
Why does Marcellus hold so many industrials in a global fund?+
This is one of the most interesting and debated aspects of the GCP's portfolio. Marcellus's thesis is that the industrials sector — particularly niche subsectors like testing & measurement, industrial automation, specialised engineering, and professional infrastructure services — contains some of the most durable compounders in the world. These businesses share characteristics that Marcellus values: high switching costs (customers can't easily replace their testing equipment supplier), recurring revenue (servicing contracts, calibration, consumables), long product lifecycles, and limited technology disruption risk compared to consumer-facing tech. Industrials at 35% reflects this conviction. The S&P 500 at ~10% industrials reflects market-cap weighting which naturally overweights whatever has performed best recently (in recent years, mega-cap tech). The GCP's industrials overweight is a genuine active divergence from the benchmark — and is central to the thesis that quality compounders in less-followed sectors can outperform over a full cycle.
How does the performance fee work with the high water mark?+
The high water mark (HWM) ensures Marcellus earns a performance fee only on net new gains — not on recovering previous losses. Here's how it works:
- Your portfolio starts at USD 75,000 (the HWM is USD 75,000)
- In year 1, it grows to USD 90,000 (+20%). On Option 2: above the 5% hurdle, the gain is USD 90K - USD 75K×1.05 = USD 11,250. Performance fee = 20% × USD 11,250 = USD 2,250
- In year 2, it falls to USD 80,000. HWM is now USD 90,000 minus fees paid. No performance fee — portfolio hasn't crossed the prior peak
- In year 3, it recovers to USD 95,000. Marcellus earns performance fee only on the gain above the previous HWM (adjusted for hurdle) — not on recovering the year-2 loss
This protects investors from paying fees twice on the same returns. It's a standard institutional PMS structure and means Marcellus is fully incentivised to generate sustained returns, not just short-term volatility gains.
What is the US estate tax risk with joint holding?+
Non-US persons who hold US-situs assets (US stocks) at death may face US estate tax at rates up to 40% on the value of those assets. This is separate from Indian inheritance tax (which does not currently exist in India). A resident Indian holding USD 75,000 of US equities through a GIFT City PMS is exposed to this risk — at death, the US-situs securities in the PMS could be subject to US estate tax. Joint holding with a spouse can reduce (though not eliminate) this exposure by halving the single-person estate. This is a real risk that Marcellus explicitly flags in the GCP deck. Before investing, consult your CA or legal advisor to understand your specific exposure and the appropriate holding structure (individual, joint, trust, or corporate) for your situation. This is one reason PMS investors benefit from working with an advisor like Tequity who will flag these non-obvious structural risks before you invest.
How is tax handled for a resident Indian investor in PMS?+
PMS taxation is different from mutual fund taxation. In a mutual fund, the fund pays tax on gains at fund level (in many cases). In a PMS, every buy/sell of a security creates a taxable event in your personal hands. The PMS manager provides detailed transaction statements (which securities were bought/sold, at what price, on what date) and you or your CA files the ITR with all these transactions. For foreign securities held via GIFT City PMS:
- LTCG (held > 24 months): 12.5% plus applicable surcharge
- STCG (held ≤ 24 months): Applicable slab rate (up to 30%) plus surcharge
- TCS: 20% on LRS remittances above INR 10 lakh/year — refundable via ITR
- 18% GST on all Marcellus management and performance fees
Given the GCP's quality compounder philosophy (buy and hold for the long term), most gains should eventually be LTCG — but in years when Marcellus exits a position before 24 months, that trade will be STCG in your hands. Consult your CA for your specific tax situation.
Enquire About Marcellus GCP
Speak with Tequity →
WhatsApp: +91 97642 89714
We'll compare fee structures for your expected returns, review the holding structure (joint vs. single), and plan LRS remittances alongside your existing global allocation.
Quick Facts
Product TypePMS (Discretionary)
MinimumUSD 75,000
Lock-inNone
InceptionOctober 31, 2022
Stocks35–40 concentrated
UniverseN. America + Europe
Top SectorIndustrials 35.3%
Up Mkt Perf+70.2% (vs 61.4%)
Dn Mkt Perf–11.7% (vs –17.3%)
IFSCA Reg.IFSCA/FME/III/2022-23/037
Eligible Investors
Resident Indians (via LRS)
NRI / OCI
Family Offices
LRS limit: USD 250,000/year per individual. Joint holding recommended to reduce US estate tax risk. Verify with your CA before investing.