How to invest in GIFT City mutual funds?

Choose a fund house with a GIFT City IFSC platform, finish your KYC with your passport and NRI or OCI documents, open the required foreign-currency account, pick a fund and transfer money in a currency like USD.

Are there mutual funds in GIFT City?

Yes. Several large Indian asset managers run dedicated IFSC platforms in GIFT City offering inbound funds for NRIs and outbound funds for residents, including equity, debt and global strategies.

Is it good to invest in GIFT City?

For many NRIs, it is a solid NRI investment option, mainly because you earn in dollars, skip the rupee risk and get real tax relief on the non-resident side. It won't suit everyone, though. If most of your spending and goals are India-based, the regular route might serve you better. So look at where you live, your tax status and what you actually want the money to do before you decide.

What is a GIFT City fund?

It is simply a fund run out of GIFT City, which is India's International Financial Services Centre near Gandhinagar. The IFSCA keeps an eye on it. What makes it different from a normal Indian fund is that you can put in and take out money in foreign currency, and you skip a lot of the tax and paperwork that resident investors deal with.

What are the benefits of GIFT City funds?

The big draw for NRIs is keeping everything in dollars, so a falling rupee does not chip away at your returns. On top of that you get no TDS and capital gains relief on a lot of categories, no GST on the fund's management fees, and you can reach both Indian and global markets from one place. There is also far less India-side filing to worry about, and the whole thing stays under IFSCA's watch.

Invest $1,000 monthly & Get $1Mn at maturity^*

+91
We don’t spam

Your personal information is secure with us

By clicking on "View Plans" you agree to our Privacy Policy
and Terms of use

Get Updates on WhatsApp

We are rated⁺⁺

13.2 Crore

Registered Consumer

Insurance Partners

6.29 Crore

Policies Sold

GIFT City Mutual Funds

GIFT City mutual funds are investment options based out of India's first International Financial Services Centre in Gandhinagar, Gujarat. They are regulated by the IFSCA and let NRIs, OCIs and foreign nationals put money into Indian or global markets using foreign currencies like the US dollar. Because these funds sit in an offshore-style zone, investors skip rupee conversion and get easier tax treatment than they would through the regular domestic route.

Plans starting from ₹1000/month

Best investment plans^˜

Tax-Free Returns at Maturity
Smart Investing for Long-Term Wealth Creation
Seamless US Dollar Investments from India

Why Should NRIs Consider GIFT City Funds?

For most NRIs, investing back home means dealing with rupee swings, TDS deductions, demat accounts and India tax filings. GIFT City removes a lot of that friction. You invest in dollars, your returns stay in dollars, and a big chunk of the usual tax and paperwork burden goes away. It gives you a clean way to hold Indian or global assets without the resident-investor headaches.

Why Should You Invest in GIFT City Mutual Funds?

Invest and track returns in USD or other major currencies, so rupee depreciation does not quietly eat into your gains.
Favourable tax setup for non-residents, with no TDS on many income types and capital gains relief on several fund categories.
Access to both Indian markets and global assets like US equities, ETFs and international themes from a single platform.
No need for a local Indian demat or bank account for inbound funds built for NRIs.
Lighter compliance and fewer India tax-filing requirements compared to the standard NRI investment route.
Regulated by the IFSCA, so the structure stays transparent and supervised.

Types of GIFT City Mutual Funds

Below are the types of GIFT City funds that people can consider for investment:

Inbound funds: Made for NRIs, OCIs and foreign nationals who want to invest into Indian equity or debt without opening a local demat or bank account.
Outbound funds: Made for resident Indians who want to spread their money into global markets, using overseas ETFs, feeder funds and international themes managed by Indian AMCs.

Types of GIFT City Mutual Funds Based on Structure

Apart from the inbound/outbound split, these funds come in a few different shapes depending on how the money is actually held and run:

Alternative Investment Funds (AIFs): These pool money from a smaller set of serious investors and run focused strategies across equity, debt or a mix of both. Most of the offshore action in GIFT City sits here.
Feeder funds: Instead of buying stocks directly, your money is fed into a bigger parent fund, often sitting overseas. You get the parent fund's strategy without dealing with it directly.
Fund of funds: As the name suggests, these put money into a basket of other funds rather than picking individual shares, so your risk is spread wider.
ETF-linked structures: A handful of platforms let you tap into global ETFs through GIFT City, which is how a lot of NRIs get exposure to US and international markets.
Target maturity and thematic funds: Some come with a set end date, others stick to one theme or region. Useful if you have a fixed goal or a specific market view.

Who Can Invest in GIFT City Mutual Funds?

People in the list below can consider to investment in GIFT City funds:

Non-Resident Indians (NRIs)
Overseas Citizens of India (OCIs)
Foreign nationals and foreign institutional investors
Resident Indians, mainly through outbound funds for global exposure

What are the Tax Benefits Offered Under GIFT City to NRIs & OCIs?

Inbound funds for non-residents are generally free from TDS, so your income is not cut at source.
Several categories of capital gains for non-residents are exempt from India's capital gains tax.
No GST on management fees charged by funds set up in the IFSC.
Returns are paid in foreign currency, so there is no rupee conversion loss at the time of redemption.
Reduced India tax-filing obligations for NRIs investing through these structures.

Tax rules do change and depend on your country of residence, so confirm the current treatment with the fund house or your advisor before you invest.

Step-by-Step Guide to Invest in GIFT City Mutual Funds

Pick a fund house or platform that runs a GIFT City IFSC offering and check whether you need an inbound (NRI) or outbound (resident) fund.
Complete the KYC process, which usually needs your passport, proof of overseas address and your NRI or OCI documents.
Open the required foreign-currency account or wallet that the platform asks for.
Choose the fund that fits your goal, whether that is Indian equity, debt or a global strategy.
Transfer funds in the accepted currency, such as USD.
Confirm the investment and keep your statements for tracking and future redemptions.

Summary

GIFT City mutual funds give NRIs and OCIs a simpler, dollar-based way to invest in Indian or global markets without the usual rupee risk, heavy tax cuts and demat requirements. With IFSCA regulation, tax breaks for non-residents and access to both inbound and outbound options, they work well for anyone in the diaspora who wants Indian or worldwide exposure with less friction. Just match the fund type to your goal and check the latest tax rules before committing.

FAQs

How to invest in GIFT City mutual funds?

Choose a fund house with a GIFT City IFSC platform, finish your KYC with your passport and NRI or OCI documents, open the required foreign-currency account, pick a fund and transfer money in a currency like USD.
Are there mutual funds in GIFT City?

Yes. Several large Indian asset managers run dedicated IFSC platforms in GIFT City offering inbound funds for NRIs and outbound funds for residents, including equity, debt and global strategies.
Is it good to invest in GIFT City?

For many NRIs, it is a solid NRI investment option, mainly because you earn in dollars, skip the rupee risk and get real tax relief on the non-resident side. It won't suit everyone, though. If most of your spending and goals are India-based, the regular route might serve you better. So look at where you live, your tax status and what you actually want the money to do before you decide.
What is a GIFT City fund?

It is simply a fund run out of GIFT City, which is India's International Financial Services Centre near Gandhinagar. The IFSCA keeps an eye on it. What makes it different from a normal Indian fund is that you can put in and take out money in foreign currency, and you skip a lot of the tax and paperwork that resident investors deal with.
What are the benefits of GIFT City funds?

The big draw for NRIs is keeping everything in dollars, so a falling rupee does not chip away at your returns. On top of that you get no TDS and capital gains relief on a lot of categories, no GST on the fund's management fees, and you can reach both Indian and global markets from one place. There is also far less India-side filing to worry about, and the whole thing stays under IFSCA's watch.

NRI Plans Articles

Explore the popular searches and stay informed

˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in

#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount shown for the Global Invest Plan with Global Invest Edu-Wealth option is for a 35-year-old proposer with an 8-year-old son, investing USD 10,000 per year for 5 years. The assumed rates of return @ 8% p.a. and @ 4% p.a. are not guaranteed and are not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: USD 1,55,765 @ 8% growth rate; USD 1,14,899 @ 4% growth rate. Tax benefits and savings are subject to changes in tax laws.

^Returns as on 10th Jan'25. 18% returns for Tata AIA Life Top 200 for the last 10 years.The past performance is not necessarily indicative of future performance. Source: Morningstar

Claude

Become a Crorepati

Invest ₹10K/Month & Get ₹1 Crore^# Returns

Mobile +91

^*T&C Applied.