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GIFT City Retail Funds

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About Retail Funds in GIFT City

GIFT City retail funds are international mutual funds or investment vehicles that invest primarily in foreign markets. They participate in cross-border investments with innovative fund strategies and let you invest in global securities.

These international mutual funds are a route to invest in securities of other nations. In GIFT City, a few Asset Management Companies (AMCs) are providing global mutual funds to investors.  

Anand Rathi International Ventures (IFSC) Pvt. Ltd. has partnered with leading global Asset Management Companies (AMCs) to distribute Global Mutual Funds to its clients through GIFT City. Serving a diverse clientele that includes NRIs, OCIs, EFIs, HNIs, family offices, and institutional investors, the firm offers curated global investment opportunities aligned with international standards and investor needs.

Dollar-denominated GIFT City retail funds are also available for Indian resident investors through the LRS route.

What Are Global Mutual Funds?
Benefits Of Investing In Retail Funds via GIFT City

Benefits Of Investing In Retail Funds via GIFT City

Allows Geographic Diversification

Allows Geographic Diversification

Exposure to Global Economies & Themes

Exposure to Global Economies & Themes

Regulated, Transparent, and Seamless

Regulated, Transparent, and Seamless

Access to International Companies

Access to International Companies

Hedge Against Currency Depreciation

Hedge Against Currency Depreciation

Professionally Managed Global Exposure

Professionally Managed Global Exposure

Favourable Taxation in GIFT City

Favourable Taxation in GIFT City

Lower Entry Barriers Compared to Direct Global Investing

Lower Entry Barriers Compared to Direct Global Investing

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Global Mutual Funds We Offer

Global Mutual Funds We Offer

Global Mutual Funds We Offer

DSP Global Mutual Fund

Global Investment Pathways Through GIFT City: Inbound & Outbound Retail Funds

Global Investment Pathways Through GIFT City

Based on the mode of transfer and assets dealt in, there are two major types of international mutual funds available in GIFT City: Inbound and Outbound.

Outbound Global Mutual Funds
                                ( like DSP Global Mutual Fund in India)

Outbound Retail Funds

Funds are available for Indian residents and non-resident Indians.

Investments are made in USD

They provide broader access to international strategies and sectors.

Creation of USD-based diversified portfolio.

It also offers tax efficiencies due to the IFSC structure.

(Note: The investments will be routed through via LRS in GIFT City for Resident Indians)

Inbound Retail Funds

Inbound Retail Funds

These funds allow Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), and Eligible Foreign Investors (EFIs) to invest in Indian markets through GIFT City.

The fund strategy and asset allocation of the Global mutual funds, specifically in GIFT City, may vary and depend on the fund’s scheme and objectives.

Process To Invest In Global Mutual Funds With Anand Rathi - GIFT City

Process To Invest In Global Mutual Funds With Anand Rathi - GIFT City

Documents Required For Global Mutual Fund Investment

Documents Required For Global Mutual Fund Investment

For investing in an International mutual fund in GIFT City, you will be required to submit the following documents:

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PAN Card

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Aadhaar Card / Government ID Proof

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Bank Account Details

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KYC Compliance (CKYC)

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FATCA Declaration

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Overseas Address
Proof (for NRIs)

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Passport (for NRIs / Foreign Nationals)

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LRS Declaration Form

FAQs

You can open an account through a mutual fund platform offering international funds, or distributors providing GIFT City-based global mutual funds in India. The first step is to open an account with a broker registered with the IFSCA in GIFT City, like Anand Rathi International Ventures (IFSC) Private Limited.

Yes, for outbound global funds where money is remitted overseas by Resident Indians under the Liberalised Remittance Scheme (LRS) up to USD 250,000 per financial year under the purpose code S0001.

Yes. CKYC/e-KYC is compulsory for all investors investing in GIFT City global mutual funds.

Some of the charges when investing in global mutual funds may include;

  • Expense ratio
  • Foreign exchange conversion fees
  • Bank remittance charges (under LRS)
  • Platform or transaction fee (varies by intermediary).

The major difference is that global funds invest in international markets, while domestic funds invest only in Indian companies and assets.

Global funds are sensitive than Indian mutual funds as they carry extra risks like currency fluctuations and global market volatility. However, on a broader scale, they offer diversification.

Like every mutual fund, there are certain viable risks in the global mutual fund:

  • Currency risk
  • Market and geopolitical risk
  • Sector concentration (in thematic/global tech funds)
  • Regulatory changes in foreign markets

In GIFT City, as per the IFSCA guidelines, the taxation for global mutual funds in India will happen at the fund level – meaning the fund will deduct taxes from its end. The investor will receive post-tax returns, which will be taxable at individual slab rates.

To benefit from global economies and the wide diversification they offer, an investment horizon of 5 years or longer is preferable in international mutual funds.

Before investing in global MFs, one must consider the following points:

  • Your risk tolerance and investment horizon
  • The region or theme the fund is investing in.
  • Fund house reputation and track record
  • Expense ratio and underlying fees.
  • Lastly, whether diversification aligns with your existing portfolio.
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