Withdrawing Money from GIFT City Funds: Redemption and Repatriation

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

The short answer. You ask the fund house to redeem, the units are sold at the applicable NAV, and the proceeds are paid in US Dollars to your registered bank account. NRIs usually receive the money abroad with no repatriation limit. Resident Indians who invested under LRS must bring the money back to India within 180 days unless they reinvest it.

Redemption in five steps

1
Check exit terms
Exit load, lock-in, cut-off time
2
Submit request
Online or on the fund house's form
3
NAV applied
Per the offer document
4
USD paid out
To your registered account
5
Report it
In your tax return

Open-ended retail schemes; AIFs and PMS follow their own agreements.

Where the money goes

GIFT City fund redeems units

Proceeds in USD

Your registered bank account

Set at onboarding; change it with the fund house

NRI: overseas account

No NRO repatriation limit applies

Resident: Indian account

Or reinvest within 180 days

The registered bank account decides where proceeds land.

By type of product

Product	When you can exit	What to check
Open-ended retail or feeder fund	Any dealing day	Exit load, cut-off time, payment timeline
Close-ended scheme	At maturity, or by selling on an exchange if listed	Maturity date, listing and liquidity
AIF (restricted scheme)	At set windows or maturity; often multi-year lock-in	Contribution agreement terms
PMS	Under the PMS agreement	Exit fees and time to sell the portfolio
IFSC bank deposit	At maturity; early withdrawal per bank terms	Premature withdrawal penalty

Rules for resident Indians

180 days: under the LRS rules, money received abroad must be brought back to India within 180 days unless it is reinvested.
IFSC foreign currency account: since RBI's circular of 10 July 2024, residents may hold a foreign currency account in GIFT IFSC under LRS for permitted purposes. Ask your bank how long proceeds may stay there.
TCS: any TCS collected when you invested is credited against your income tax; it is not refunded on redemption. See the TCS calculator.
Schedule FA: report the holding every year you held it, including the year of sale.

Common mistakes

Changing banks or countries without updating the registered account with the fund house.
Redeeming inside an exit-load period without checking the cost.
For residents, leaving proceeds abroad beyond the permitted period.

Moving country? See what happens to your GIFT City investments when you move. Related: how to invest, taxation.

Common questions

How do I withdraw money from a GIFT City fund?

Submit a redemption request to the fund house, online or on its form. Units are redeemed at the applicable NAV and the proceeds, usually in US Dollars, are paid to the bank account registered with the fund house. The scheme's offer document states the payment timeline.

How long does GIFT City fund redemption take?

For open-ended retail schemes, proceeds usually arrive within a few business days of the redemption being processed; the offer document gives the exact period. Close-ended schemes, AIFs and PMS follow their own terms: AIFs may allow exits only at set windows or at maturity.

Can NRIs repatriate GIFT City redemption proceeds?

Yes. NRIs invest from money held abroad, and proceeds are paid in foreign currency to their registered account, usually overseas. The USD 1 million a year limit that applies to repatriating money from an NRO account does not come into it.

Do resident Indians have to bring the money back to India?

Under the LRS rules, money received abroad (such as redemption proceeds) must be brought back to India within 180 days unless it is reinvested. Many residents have proceeds paid straight to their Indian bank account. Check the current rule with your bank.

Is there an exit load on GIFT City funds?

It depends on the scheme. Some retail schemes charge an exit load for early redemption; AIFs often have lock-ins of several years. Check the offer document before you invest.

Is tax deducted when I redeem?

It depends on the fund's structure and your residential status. Gains are reported in your Indian return if you are resident, and in your country of residence if you are an NRI. Residents also show the holding in Schedule FA every year until it is sold.

Official sources

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

RBI — FAQs on the Liberalised Remittance Scheme — The annual limit and permitted purposes for resident Indians.
IFSCA — International Financial Services Centres Authority — The regulator for all financial services in GIFT IFSC.
IFSCA Directory of regulated entities — Check that a Fund Management Entity is registered.
Income Tax Department, Government of India — The Income-tax Act, including Section 10(4D), and TCS rules.

Have a question about how this works?

Anup Vatyani explains GIFT City fund structures and the investment process in plain English. Educational conversation only, not personalised advice.

Talk to Anup

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.