How NRIs Can Invest in GIFT City Funds: A Step-by-Step Overview

For most NRIs and OCIs, investing in a GIFT City IFSC fund for the first time raises the same practical question: what actually happens, in what order? The regulatory framework is new enough that there isn't yet a well-worn path the way there is for, say, opening an NRE account. Here is the sequence in practice.

Step 1: Understand which structure you're choosing

GIFT City funds aren't one product — they're a family of structures (Mutual Fund FoFs, AIFs, PMS and Retail Feeder Funds) with different ticket sizes and risk profiles. Get this right first; changing structure later usually means starting the onboarding process over. See our fund categories comparison for the full breakdown.

Step 2: Confirm eligibility and residency route

NRIs and OCIs typically invest directly in USD from an overseas bank account — no LRS involved, since the money never originates in India. This is one of the more attractive parts of the GIFT City structure for NRIs specifically. If you're a US-based NRI or US person, also check PFIC vs Non-PFIC status of the specific fund before proceeding.

Step 3: Prepare your KYC documentation

Standard requirements are a valid passport, PAN card (or Form 60 declaration where applicable), proof of overseas address, a recent bank statement, and a tax residency certificate (TRC) from your country of residence. US persons will additionally need to complete a W-9 or W-8BEN as appropriate.

Step 4: Onboard with the Fund Management Entity (FME)

Every GIFT City fund is run by an IFSCA-registered Fund Management Entity. You'll complete their subscription documents and KYC verification directly with them — this is not routed through a mutual fund distributor's platform in the way a domestic Indian mutual fund purchase is.

Step 5: Remit funds and receive your allotment

Once onboarding is complete, you remit funds in USD directly from your overseas account, and receive a unit allotment confirmation from the FME. From there, you track your holding through the FME's investor portal — much like tracking a brokerage account.

For the full walkthrough with all five steps laid out visually, see our How to Invest guide, or talk to Anup to get matched with the right FME for your situation.

This article is educational only and is not investment advice. Always review scheme documents and consult a qualified advisor before investing.