Anup Vatyani — AMFI-registered Mutual Fund Distributor (ARN 106715) | Educational content only | No personalised advice

    Funds regulated by IFSCA · invest in USD

    GIFT City Funds,
    Explained Simply

    Plain-English guides to investing in dollars through India's international financial centre, for NRIs, OCIs and resident Indians.

    Find your route or talk to Anup
    • Invest in US Dollars from your overseas account
    • No LRS limit and no TCS
    • Retail funds commonly from about USD 500
    GIFT City funds for NRIs

    Start from USD 500. For example, Tata India Dynamic Equity Fund (GIFT City) accepts USD 500 from NRIs, OCIs and foreign investors; it is not open to Indian residents or US persons. Source: Tata Mutual Fund. An example of a minimum, not a recommendation.

    Regulated by IFSCA, not SEBIFunds are in US Dollars; your bank converts from rupees or your local currencyResidents invest via LRS — up to USD 250,000 a yearSome retail funds from USD 50016,150 investors in GIFT City funds, over half in retail schemes (IFSCA, June 2026)Every guide links to its official source

    The process

    How Investing Works, in Five Steps

    The same path most NRI, OCI and Resident Indian investors follow.

    Read the full guide
    1. 1

      Understand the structures

      Mutual Fund FoFs, Retail Feeder Funds, AIFs and PMS — and their minimums.

      Funds Explained
    2. 2

      Check your eligibility & route

      NRI, OCI or Resident Indian — and if US-based, PFIC status first.

      Who It's For
    3. 3

      Gather your documents

      Passport, PAN, overseas address proof, tax residency certificate.

    4. 4

      Ask your questions

      Ask Anup how the process works, or to be connected with a Fund Management Entity.

      Contact Anup
    5. 5

      Complete onboarding and invest

      KYC with the FME, sign subscription documents, remit USD, receive units.

    Two tiers of GIFT City products

    Retail funds start from about USD 500. PMS and AIFs start at USD 75,000 and USD 150,000 and are built for high-net-worth investors, families and institutions. Know which tier you are looking at before you compare.

    Retail tier

    Small to moderate amounts, for individual investors

    1. From about USD 1US stocks and ETFs via an IFSC brokerDo-it-yourself investors; residents under LRS, eligible NRIs
    2. Set by each bankUSD deposits at IFSC Banking UnitsSavers wanting dollar deposits
    3. From USD 500 to a few thousandRetail funds and feeder fundsMost individual NRIs, OCIs and residents

    High-ticket tier

    USD 75,000 and above, for HNIs, families and institutions

    1. USD 75,000Portfolio management services (PMS)HNIs wanting a managed portfolio in their own name
    2. Commonly USD 150,000AIFs (restricted and venture capital schemes)Experienced HNIs, family offices, institutions
    3. High minimum corpusFamily investment funds and FPIsWealthy families and institutions
    Indicative minimums as of October 2026; each scheme, broker or bank sets its own figure and eligibility. Residents invest within the LRS limit of USD 250,000 a year. See all minimums and limits.

    Where your money goes when you invest through GIFT City

    GIFT City funds run in two directions. NRIs use them to invest in India in dollars; resident Indians use them to invest abroad. See which fund houses run them.

    How money moves through GIFT CityInbound: NRIs send US Dollars to GIFT IFSC funds that invest in India. Outbound: resident Indians send money under LRS to GIFT IFSC funds that invest globally.NRIsUSD from abroadNo LRS or TCSResident IndiansUnder LRSTCS above ₹10 lakhGIFT IFSCIFSCA-regulated, USDIndian marketsInbound fundsIndian equity, bondsGlobal marketsOutbound fundsUS and globalInboundOutbound
    One centre, two directions. The direction of a fund decides who usually invests and which rules apply.

    Work it out in under a minute

    Which route applies to me?

    Resident, NRI, OCI or returning: see your route, limits and tax collected at source.

    TCS calculator

    Estimate TCS on any LRS remittance for FY 2026-27, including GIFT City investments.

    GIFT City fund list

    Fund houses with GIFT City funds, inbound and outbound, with official sources.

    Document checklist

    Pick your status, country and product; print your KYC list.

    What changed lately

    Dated IFSCA, RBI, SEBI and tax changes, and what each means for you.

    Latest GIFT City news

    All news

    • Angel One starts rolling out US stocks through GIFT City

      Angel One began offering US-listed stocks and ETFs through GIFT City to selected app users, following IFSCA approval, and expects to open it to all users by mid-November.

      Source: UNI

    • NMDC and SAIL set up subsidiaries in GIFT IFSC

      The two public sector companies have each incorporated a subsidiary in GIFT City's IFSC: NMDC as a platform for overseas mineral projects, SAIL mainly as a group treasury centre.

      Source: Business Standard

    • Canara HSBC Life launches a dollar ULIP for NRIs via GIFT City

      Canara HSBC Life introduced a US Dollar unit-linked insurance plan through GIFT City, aimed at NRIs, with global equity, gold and silver, and debt fund options. It is distributed through Policybazaar.

      Source: Angel One report

    Why Start Here

    Regulated by IFSCA

    GIFT City funds operate under India's International Financial Services Centres Authority — a single regulator built specifically for this jurisdiction, distinct from SEBI's oversight of the rest of India's mutual fund industry.

    Not run by a fund house

    This isn't an AMC's own website, and it isn't built to promote one scheme. It explains the GIFT City fund structures so you can compare them before you commit to anything.

    One point of contact

    Questions go directly to Anup Vatyani — no call centre, no relationship-manager rotation, no hand-offs between departments.

    What Is GIFT City?

    GIFT City — short for Gujarat International Finance Tec-City — is India's first International Financial Services Centre (IFSC): a purpose-built jurisdiction where funds can be bought and sold in US Dollars, regulated separately from the rest of India's financial system. That single fact is what makes a GIFT City fund structurally different from a mutual fund you might already hold through a regular Indian demat account.

    Understand GIFT City in full

    Why These Funds Exist

    Invest in global currency

    Contributions and redemptions happen in US Dollars, so currency risk and conversion costs work differently than a typical NRI remittance through the NRE/NRO route.

    A separate regulator

    The International Financial Services Centres Authority (IFSCA) — not SEBI alone — oversees GIFT City funds, with its own rules on structure, disclosure and investor eligibility.

    Built for global portfolios

    These structures are designed to hold international assets and route capital across borders in ways a typical onshore Indian mutual fund cannot.

    How GIFT City Funds Are Structured

    Not every GIFT City fund works the same way. Four broad structures cover most of what's available:

    Mutual Fund FoF

    A feeder fund that channels your money into an underlying scheme; typically the lowest entry ticket of the four.

    AIF (Alternative Investment Fund)

    A pooled vehicle for less standardised strategies; typically the highest entry ticket.

    PMS (Portfolio Management Services)

    A professionally managed, individually held portfolio for investors wanting more customisation.

    Retail Feeder Fund

    A lower-ticket fund built for simple, individual access.

    See the full comparison

    Who Actually Invests in These Funds?

    NRI

    Send money from your overseas account (converted to USD if needed), invest and redeem in USD — no conversion to rupees through an NRE or NRO account.

    OCI

    Broadly similar access to NRIs, with a few fund-specific eligibility conditions worth checking upfront.

    Resident Indian

    You can invest too, via the Liberalised Remittance Scheme (LRS), subject to its own annual limit and tax treatment.

    Living outside India? Whether a fund accepts you, and how it is taxed, depends on your country: the UAE and Gulf, UK, US (PFIC rules), Canada, Singapore or Australia. See the NRI guide, country by country

    See the full breakdown

    Advantages of GIFT City Funds for NRIs

    GIFT City provides NRIs with a globally aligned investment ecosystem, offering access to professionally managed investment products through India's International Financial Services Centre (IFSC). It combines international standards, regulatory oversight, and a wider range of investment opportunities in one place.

    Key Benefits

    • ◆Invest in USD and other permitted foreign currencies (subject to fund structure)
    • ◆Access India and global investment opportunities
    • ◆Regulated by IFSCA, India's unified IFSC regulator
    • ◆Professionally managed investment products
    • ◆Potential tax-efficient investment structures
    • ◆Diversified options across Mutual Funds, AIFs, REITs, InvITs and more

    Investing Through Traditional Route vs GIFT City

    • Investment Currency

      Traditional Route

      Primarily INR

      GIFT City

      USD and other permitted foreign currencies*

    • Investment Opportunities

      Traditional Route

      Primarily India-focused

      GIFT City

      India-focused and global investment opportunities

    • Investment Products

      Traditional Route

      Mutual Funds, Stocks, Fixed Income

      GIFT City

      Mutual Funds, AIFs, REITs, InvITs, Feeder Funds & Fund of Funds

    • Regulatory Framework

      Traditional Route

      Multiple regulations (RBI, FEMA, SEBI, etc.)

      GIFT City

      Unified IFSC ecosystem regulated by IFSCA

    • Global Market Access

      Traditional Route

      Limited

      GIFT City

      Easier access through internationally structured funds

    • Portfolio Diversification

      Traditional Route

      Primarily domestic investments

      GIFT City

      Diversified exposure across India and global markets

    • Tax Efficiency

      Traditional Route

      Standard tax provisions

      GIFT City

      Potential tax-efficient structures for eligible IFSC investments*

    • Investment Experience

      Traditional Route

      Multiple processes and intermediaries

      GIFT City

      Streamlined cross-border investment experience

    *Investment features, currency options, and tax benefits vary depending on the specific fund structure, applicable regulations, and the investor's country of residence.

    These features come with risks, including market risk, currency risk and exit restrictions. Returns are not guaranteed. Read the risks of GIFT City funds and how they compare with regular Indian mutual funds.

    How Anup Can Help

    I'm Anup Vatyani, an AMFI-registered Mutual Fund Distributor (ARN 106715) with over 22 years in banking and financial services, including a decade dedicated to mutual fund distribution. My role on this site — and in any conversation that follows — is to help you understand how GIFT City funds work, not to push a specific product or give personalised investment advice. If, after reading through this, you'd like to talk it through, I'm one message away.

    Talk to Anup

    GIFT City funds: frequently asked questions

    What investment opportunities are there in GIFT City?

    For individuals: GIFT City mutual funds and feeder funds, AIFs and PMS for larger amounts, US Dollar fixed deposits at IFSC Banking Units, US stocks and ETFs through IFSC brokers, and dollar insurance products. Each has different minimums, risks and tax.

    What is GiftCityFunds?

    GiftCityFunds (giftcityfunds.in) is an educational website about GIFT City funds, written by Anup Vatyani, an AMFI-registered Mutual Fund Distributor (ARN 106715). It is not a fund house, a bank or an investment platform, and it does not give personalised advice.

    What are GIFT City mutual funds?

    GIFT City mutual funds are funds set up in India's International Financial Services Centre (GIFT IFSC) in Gandhinagar and regulated by IFSCA. They include retail schemes, feeder funds, AIFs and portfolio management services, run by IFSCA-registered Fund Management Entities, many of them arms of well-known Indian fund houses.

    Are GIFT City funds USD funds?

    Most are. GIFT City funds are usually denominated in US Dollars: you invest in dollars and redeem in dollars. That suits NRIs who earn in foreign currency, and gives resident Indians a dollar holding through LRS.

    Is a GIFT City fund the same as a regular Indian mutual fund?

    No. A GIFT City fund is regulated by IFSCA rather than SEBI, is usually in US Dollars, and has its own rules on who can invest, minimums and tax. There is also no SIP: you invest lump sums.

    Do I need a PAN card to invest in GIFT City funds?

    Resident Indians need a PAN. For NRIs and foreign citizens it depends on the fund house: some require a PAN, others accept a declaration from investors whose only Indian income is from IFSC funds.

    Who regulates GIFT City funds?

    The International Financial Services Centres Authority (IFSCA), the single regulator for financial services in GIFT IFSC. SEBI regulates domestic Indian mutual funds, not GIFT City funds.

    How is a GIFT City fund taxed for a US-based NRI?

    Mainly under US rules: most GIFT City funds are likely to be PFICs, which brings annual Form 8621 reporting and potentially punitive tax unless an election is available. Many schemes also do not accept US persons. Take US tax advice first.
    Read all FAQs

    About the Contributor

    Anup Vatyani

    Anup Vatyani has over 22 years of experience in banking and financial services, including a decade as an AMFI-registered Mutual Fund Distributor (ARN 106715). This site is his effort to provide an accurate, educational resource on GIFT City and IFSC investing.

    Read Anup's full background

    Still have questions about GIFT City funds?

    That's a fair place to be. Ask Anup anything — no forms that go to a call centre, no pressure, and no obligation to invest.

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