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

    GIFT City Glossary: 27 Terms Explained Simply

    Anup Vatyani

    By Anup Vatyani, AMFI-registered Mutual Fund Distributor (ARN 106715)
    Last reviewed October 2026

    Every term below links to a fuller guide where one exists. Terms are in alphabetical order.

    AIF (Alternative Investment Fund)
    A pooled fund for strategies outside conventional mutual funds, such as private credit or long-short equity. In GIFT City these are usually restricted schemes with high minimums. Fund types
    ARN (AMFI Registration Number)
    The number AMFI issues to a registered Mutual Fund Distributor. You can check any ARN on the AMFI website.
    Exit load
    A fee charged if you redeem units before a set period. It is stated in the offer document.
    Feeder fund
    A fund that puts most of its money into one other fund, often an overseas or domestic master fund.
    FEMA
    The Foreign Exchange Management Act, 1999. For FEMA purposes, entities in the IFSC are treated as outside India, which is why residents invest in GIFT City through LRS.
    FME (Fund Management Entity)
    The IFSCA-registered company that manages a GIFT City fund. Check it in the IFSCA Directory before investing. What is IFSCA
    Form 26AS / AIS
    Your tax statements on the income tax portal. TCS collected on foreign remittances appears here.
    GIFT City
    Gujarat International Finance Tec-City, a business district in Gandhinagar, Gujarat. Part of it is notified as India's IFSC. What is GIFT City
    IBU (IFSC Banking Unit)
    A branch of a bank operating inside GIFT IFSC that offers foreign-currency accounts and deposits. GIFT City bank accounts
    IFSC (International Financial Services Centre)
    A jurisdiction inside India that deals in foreign currency and is treated as outside India for foreign exchange purposes. GIFT IFSC is India's first.
    IFSCA
    The International Financial Services Centres Authority, the single regulator for financial services in IFSCs in India, set up on 27 April 2020. Read more
    Inbound fund
    A GIFT City fund that collects money (often from NRIs or foreign investors) and invests it in Indian markets. Fund list
    LRS (Liberalised Remittance Scheme)
    The RBI scheme that lets a resident individual send up to USD 250,000 abroad each financial year for permitted purposes, including investment in GIFT City funds. LRS and GIFT City
    NAV (Net Asset Value)
    The value of one unit of a fund, worked out from the value of its holdings less costs. GIFT City fund NAVs are usually in US Dollars.
    NRE / NRO account
    Rupee accounts for NRIs in India. NRE money is freely repatriable; NRO money can be repatriated within limits. Compare
    OCI (Overseas Citizen of India)
    A foreign citizen of Indian origin registered as an OCI cardholder. OCIs are generally treated like NRIs for investment purposes. OCI investors
    Offer document / PPM
    The legal document describing a scheme: strategy, risks, fees, minimums and exit terms. Read it before investing.
    OPI (Overseas Portfolio Investment)
    The FEMA category under which a resident's investment in foreign securities, including GIFT City funds, falls.
    Outbound fund
    A GIFT City fund that invests outside India, such as in US or global equities. vs international MFs
    PFIC
    Passive Foreign Investment Company, a US tax category that covers most non-US funds and can lead to punitive tax and Form 8621 reporting for US persons. PFIC explained
    PMS (Portfolio Management Services)
    A portfolio held in your own name and managed by a professional. In GIFT City the minimum is USD 75,000. Fund types
    Restricted scheme
    A GIFT City scheme open only to accredited or high-ticket investors, commonly with a USD 150,000 minimum.
    Retail scheme
    A GIFT City scheme open to the general public, with minimums set by the scheme. Run only by a Registered FME (Retail).
    Schedule FA
    The part of the Indian income tax return where residents report foreign assets, including GIFT City and overseas holdings.
    Section 10(4D)
    The Income-tax Act provision giving tax concessions to specified funds in an IFSC on certain income. Taxation
    TCS (Tax Collected at Source)
    Tax your bank collects on LRS remittances above the yearly threshold: 20% above ₹10 lakh for investment. It is credited back against your income tax. TCS calculator
    TRC (Tax Residency Certificate)
    A certificate from your country's tax authority confirming where you are tax resident, needed to claim treaty benefits.

    Official sources

    Rules change. Check the current position with the authority that sets it.

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    This page is educational and is not investment, tax or legal advice. Figures and rules are as understood at the date shown and can change; check the official sources and the scheme's offer documents. Investments are subject to market risks; read all scheme-related documents carefully.