GIFT City Funds

Please note: This page is general information, not an offer of any scheme. Many GIFT City (IFSC) schemes are offered only by private placement to accredited or high-minimum investors.

What GIFT City funds are

GIFT City funds are investment funds set up in the International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City, in Gandhinagar, Gujarat. They usually invest and are held in foreign currency, most often US dollars.

The IFSC is treated much like an offshore financial centre, but it sits inside India. Funds there are regulated by the International Financial Services Centres Authority (IFSCA), a unified regulator set up in 2020 under the International Financial Services Centres Authority Act, 2019.

Depending on the fund, GIFT City structures may offer exposure to:

International equities: shares of companies in the US and other global markets.
Global private markets: private equity and private credit outside India.
Offshore funds: feeder funds that invest into established global funds.
Alternative strategies: including dollar-denominated funds that invest back into India.

Why investors look at them

Global diversificationYour money is not tied only to the Indian economy or the rupee.

Dollar-denominatedYou invest and redeem in US dollars, which suits many families abroad.

Regulated in IndiaOverseen by IFSCA, with an Indian address and Indian points of contact.

Who they may be relevant for

The route in, the limits and the tax points differ for NRIs and for residents.

	Non-resident Indians (NRIs)	Resident Indians
How money goes in	Usually directly in foreign currency from an account abroad, without first converting to rupees.	Through the Liberalised Remittance Scheme (LRS), the Reserve Bank of India's route for sending money abroad.
Why it may appeal	Invest in India or globally in dollars, with fewer rupee-conversion steps.	Diversify beyond India, and hold part of your savings in dollars.
Limits	Set by the fund and by the rules of your country of residence.	LRS currently allows up to USD 250,000 per person per financial year, across all purposes combined.
Tax points	Some funds may offer tax benefits for non-residents, depending on their structure. Your country of residence may also tax you.	Under the Income-tax Act, 2025, tax may be collected at source (TCS) on remittances above a yearly threshold. Gains are taxable in India.

Tax and LRS rules change. Please check the current position with your bank and a tax professional before investing.

A woman with a cup of tea looking out over a harbour city at dusk — Illustrative image

For Indians living abroad

Whether you live in the USA, the UK, Canada, the European Union, the UAE, Australia or New Zealand, a GIFT City fund can be a way to invest in dollars through an Indian-regulated structure.

Not every fund accepts every countryResidents of the USA and Canada in particular face extra rules, and some funds do not accept them.

Your home country's tax still mattersFor example, US persons may have extra reporting for foreign funds. Please check with a tax professional where you live.

Read the NRI Guide

How Finpotters helps

Eligibility first, then the fund itself.

Understand where you live and what you needYour residence, your currency needs and your existing investments shape what makes sense.
Check eligibility firstWe confirm whether a fund accepts investors from your country before going further.
Explain the fund plainlyWhat it invests in, its currency, minimum, lock-in and fees.
Paperwork and reviewsWe help with documents, and review the holding with you over time.

The risks to understand

Investing outside India adds a currency to think about, on top of the usual market risk.

Market riskGlobal markets can fall, just like Indian ones.

Currency riskFor a resident, a stronger rupee can reduce returns when counted in rupees.

LiquiditySome funds, especially private-market ones, lock money in for years.

Common questions

Is a GIFT City fund an Indian fund or a foreign fund?

It sits in India but in a special zone that is treated much like an offshore centre for currency and many regulatory purposes. It is regulated by IFSCA, not by SEBI as a regular mutual fund is.

What is the minimum investment?

It varies widely. Retail schemes, open to all investors, set their own minimums. Restricted schemes are offered by private placement only to accredited investors or to those investing at least USD 150,000. We share the exact minimum for each fund.

Can a resident Indian invest?

Yes, generally through the Liberalised Remittance Scheme (LRS), within its yearly limit. Tax may be collected at source on larger remittances. Your bank handles the remittance.

Are GIFT City funds tax-free for NRIs?

Not automatically. Some funds may offer tax benefits for non-residents depending on their structure, but the details matter and your country of residence may tax you too. Please check with a tax professional before investing.

How is this different from an international mutual fund in India?

An international mutual fund in India takes rupees and is regulated by SEBI. A GIFT City fund usually takes and pays in US dollars and is regulated by IFSCA. Which fits better depends on your residence, currency needs and tax.

Please note: GIFT City (IFSC) funds are regulated by the International Financial Services Centres Authority (IFSCA), not by SEBI. Resident Indians invest in foreign currency under the RBI Liberalised Remittance Scheme, within its annual limit. Many IFSC schemes are offered only by private placement to accredited or high-minimum investors. This page is general information, not an offer of any scheme. Currency, market and liquidity risks apply, and returns are not assured. Tax treatment depends on your circumstances and may change; please consult a tax professional. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.