Archive · 3 Dec 2025
GIFT City Emerges as Viable Global Investment Route
GIFT City is a special place in India where people can invest in global markets like the US.
It's different from regular Indian mutual funds because it's not controlled by SEBI, so it doesn't have the same limits on how much can be invested overseas.
This makes it a good option for people who want to invest in foreign stocks and other assets.
There are some rules, though.
Indian investors can only send up to USD 250,000 per year to invest abroad, whether they use GIFT City or not.
Some recent funds launched in GIFT City include ones that invest in the S&P 500 and NASDAQ 100.
GIFT City is also becoming popular with NRIs who find the investment opportunities there appealing.
GIFT City is emerging as a popular investment route for global diversification due to lower costs, tax advantages, and no SEBI overseas investment limits.
Investments in GIFT City funds do not count towards SEBI's USD 7 billion/1 billion cap for domestic mutual funds.
Indian investors are subject to RBI's LRS limit of USD 250,000 per fiscal year for overseas investments, regardless of the route.
Recent global funds launched in GIFT City include Parag Parikh IFSC S&P 500 Fund of Fund, Parag Parikh IFSC NASDAQ 100 Fund of Fund, and DSP Global Equity Fund.
GIFT City is becoming the preferred route for global investing due to its advantages over direct LRS investing, including lower frictional costs and cleaner taxation.
- Who
- Indian investors, NRIs, and other investors looking to diversify globally
- What
- GIFT City emerging as a viable investment route for global investments
- When
- Currently, with recent launches of global funds and improved retail access
- Where
- GIFT City, India's first IFSC
- Why
- To diversify investments globally at a lower cost and with tax advantages, and to bypass SEBI's overseas investment limits
- GIFT City
- India's first International Financial Services Centre (IFSC)
- SEBI's Overseas Investment Limit
- USD 7 billion for the mutual fund industry, USD 1 billion per mutual fund house
- RBI's LRS Limit
- USD 250,000 per fiscal year for resident individuals
- GIFT Funds Regulation
- Regulated by IFSCA, not SEBI
- Recent Global Funds Launched
- Parag Parikh IFSC S&P 500 Fund of Fund, Parag Parikh IFSC NASDAQ 100 Fund of Fund, DSP Global Equity Fund
- Advantages of GIFT City
- Lower cost, tax advantages, no SEBI overseas investment limits, no US inheritance tax exposure, lower frictional costs
- Investment Routes via GIFT City
- GIFT-based Fund of Funds offered by Indian AMCs or direct investment via LRS into GIFT funds