GIFT City Investment Products

Product Overview

GIFT City offers IFSC mutual funds, AIFs, and PMS regulated by IFSCA, providing global investment access in USD. These suit NRIs well due to tax efficiencies but have LRS limits for resident Indians.

Product Types

  • IFSC Mutual Funds (feeder funds to global/Indian assets)
  • Alternative Investment Funds (AIFs)
  • Portfolio Management Services (PMS)
  • Equity, debt, commodities, derivatives funds

Main Features

  • Global diversification in USD/other currencies
  • IFSCA regulation with strong protections
  • Minimums: Mutual funds from $500, AIFs $75K-$150K

Suitability

Investor Type Eligibility Key Notes
Resident Individuals Up to $250K/year under LRS Suitable for HNW diversification
NRIs/OCIs/PIOs Full access, no limits Ideal for global exposure, family pooling

Benefits & Pros

  • No TDS on redemptions for NRIs; DTAA benefits
  • No STT/stamp duty on IFSC trades
  • Currency flexibility, restricted asset access

Cons: High minimums (lowering), currency risks, liquidity concerns

Taxation Overview

NRIs: No TDS on gains; taxed per residency/DTAA. Residents: Standard Indian slabs + LRS reporting. Verify with tax expert as laws evolve