GIFT City Allows Global Mutual Funds to Relocate: Everything You Need to Know

Introduction

From April 2026, mutual funds and ETFs domiciled in Singapore, Mauritius, Luxembourg, or any other offshore jurisdiction can now relocate to GIFT City IFSC. 

So, what does this actually mean for you as an investor? Will your existing investments be affected? Who stands to benefit from this change? And how can you invest in global mutual funds through GIFT City?

In this guide, we'll answer these questions and explain the new GIFT City global mutual fund framework in simple terms.

What Is the New Global Mutual Fund Relocation Framework?

The framework, announced in the Union Budget 2026 and operationalised by IFSCA, allows offshore mutual funds and ETFs to relocate their domicile to GIFT City IFSC on a fully tax-neutral basis. 

It means no capital gains tax is triggered for the fund, the new IFSC-based fund, or its existing unit holders during the move.

Benefits of Relocating Mutual Funds to GIFT City

Relocating mutual funds to GIFT City gives global funds access to a 20-year tax holiday, zero transaction taxes, a unified regulator, USD-denominated operations, and direct access to India's $5.04 trillion equity market — all within Indian territory.

1. 10-year tax holiday on fund income for IFSC units (extended by Budget 2026)
2. Zero STT, stamp duty, and GST on all financial transactions within IFSC
3. USD-denominated operations – No mandatory rupee conversion
4. Unified regulator (IFSCA) – Single-window clearance instead of navigating RBI, SEBI, and IRDAI separately
5. Full repatriability – Both principal and profits can be freely remitted abroad
6. No SEBI overseas investment cap – IFSC funds aren't bound by the $7 billion ceiling that restricts domestic mutual funds.
7. Access to both Indian and global markets – Inbound funds invest in India, and outbound funds invest globally.

How Is This Different from Setting Up a New Fund?

Mutual Fund relocation to GIFT City preserves investor continuity. 

Since each AMC has an investment limit of $7 billion, anything above it is not allowed. In such a case, the mutual fund houses in India have to either stop accepting fund; or liquidate the investments. 

That’s where the GIFT City’s mutual funds relocation is beneficial.  

Indian mutual fund houses with surpassed the limit can open a new mutual fund in GIFT City and operate. Thus, if new (or existing) investors want to invest in the same MF, IFSCA allows it without triggering any taxable gains. 

How Many Indian Mutual Funds Invest Globally?

As of 2026, India has around 70 international mutual fund schemes that invest outside India, either directly in overseas stocks or indirectly through international mutual funds and ETFs.

Below are some of the popular Indian global mutual funds:

(Note: As of early 2026, only 28 international mutual funds were accepting fresh investments, though SIPs continued in many schemes. While India has around 70 international mutual fund schemes, not all may be open for fresh lump-sum investments. )

List of Global Mutual Funds in GIFT City  

The following global mutual funds are currently available through GIFT City IFSC:

(Note: These are among the first retail global mutual funds.)

Who Can Benefit from Global MF Relocation to GIFT City?

The relocation framework benefits four distinct groups: Global fund managers seeking regulatory efficiency, NRI investors (especially from the US and Canada) facing domestic MF restrictions, Indian AMCs wanting to offer dollar-denominated global products, and Resident Indian investors seeking diversified international exposure.

Here’s a simple, brief advantages explained for all:

Global Fund Managers:

1. Consolidate India-focused offshore funds under one regulator.
2. Avoid maintaining separate compliance in Mauritius + Singapore + India
3. Access India's growing investor base directly.

NRI investors:

1. US and Canada-based NRIs face restrictions with many Indian domestic mutual funds due to FATCA compliance. GIFT City-based mutual funds bypass these restrictions.
2. Full repatriability with no FEMA complications.
3. Tax exemption on income earned solely from IFSC-based investments.

Indian AMCs:

1. GIFT City allows AMCs to serve global investors without setting up in Singapore or Dublin.
2. DSP, Edelweiss, Parag Parikh, and Tata AMC have already launched GIFT City funds
3. Nippon India and Mirae Asset are planning similar launches. Recently, the Marcellus Global Equities Fund was launched on June 8, 2026.

Resident Indian investors:

1. Can invest via LRS (up to $250,000/year)
2. Access global equities, NASDAQ, and S&P 500 through IFSC-based funds
3. Investment of $5000 lumpsum for retail schemes (eg. DSP Global Equity Fund)

How Can You Invest in Global MFs in GIFT City?

Investing in GIFT City mutual funds starts with opening an account with an IFSCA-registered platform (or directly with the AMC), completing KYC, transferring funds in USD, and selecting from available retail mutual fund schemes.

Step 1: Connect with a Distributor or Platform 

Identify suitable global mutual fund options in India based on your resident status.

Step 2: Explore available funds 

Review and select a suitable mutual fund based on their strategy and your risk profile.

Step 3: Complete Onboarding & KYC Process 

Through the assigned associate, complete the standard documentation and onboarding process, and submit the requested documents. 

Step 4: Make the investment 

Fund your account via LRS remittance and invest.

Likewise, you can also track your portfolio as;

• AMCs provide a Statement of Account (SoA) regularly
• Plus, NAV (Net Asset Value) can be tracked on AMC websites.

Conclusion: How can Investors Benefit from GIFT City Mutual funds?

The new relocation MF framework is more than just a regulatory update. It's another step in GIFT City's journey to becoming a global investment hub. 

GIFT City won't replace Singapore or Dublin overnight. But for India-focused funds, the tax-neutral relocation framework removes the last major barrier that kept fund managers offshore.

With a 10-year tax holiday, zero transaction taxes, USD operations, and a unified regulator, the structural case is strong. 

Whether you're an NRI or an investor looking to diversify globally, a mutual fund is becoming the efficient route to access both Indian and international markets from a single regulated hub.