GIFT City is India's gateway for two different journeys — Non-Resident Indians investing into India, and resident Indian investors diversifying into global markets. Whether you're an NRI, OCI, or a resident Indian investor, GIFT City offers a regulated, tax-efficient route through Mutual Funds, PMS, and AIFs to achieve either goal.
What is GIFT City Fund Investment?
A GIFT City Fund is a regulated investment route offered through India's International Financial Services Centre, overseen by the
International Financial Services Centres Authority (IFSCA).
For NRI & OCI Investors
If you're an NRI or OCI, GIFT City lets you invest directly into Indian equities, private equity, infrastructure, and debt markets — in foreign currency, without routing through multiple jurisdictions or converting to INR. Your investments benefit from significantly reduced tax friction compared to investing through mainland India.
- No forced INR conversion — invest and redeem in USD or other major currencies
- Reduced or zero capital gains tax on eligible securities for non-residents
- Full repatriation of investment proceeds
- Remote video KYC available — no need to visit India in person
For Resident Indian Investors
If you're a resident Indian investor, GIFT City gives you a regulated route to global diversification through the Liberalised Remittance Scheme (LRS), which permits remittances of up to $250,000 per financial year. This is a meaningful consideration when sizing your investment — a single $150,000 AIF commitment uses the majority of your annual LRS limit, so it's worth planning around any other foreign remittances you make in the same year.
- Access to global equities, international bonds, and overseas diversification
- Regulated Indian framework — no need to set up an offshore account independently
- Same IFSCA oversight and investor protections as the inbound route
Investment Routes Available at GIFT City
Every GIFT City Fund route —
Mutual Fund,
PMS, or
AIF — offers a different entry point depending on your investment size. NRI investors exploring other options can also review our
NRI Investment Solutions page.
GIFT City Mutual Funds
The most accessible entry point for both NRI and resident investors, with minimums starting from $500, and select funds requiring up to $5,000. A natural starting point if you're new to GIFT City.
GIFT City PMS
Portfolio Management Services offering personalised, professionally managed portfolios. Minimum investment: $75,000.
GIFT City AIF
Structured across Category I (startups, infrastructure), Category II (private equity, debt), and Category III (hedge-fund style strategies). Minimum investment: $150,000. Typical lock-in period of around 3 years applies.
Key Tax Benefits
- Reduced or zero capital gains tax for non-residents on eligible securities
- No Securities Transaction Tax (STT), no Commodities Transaction Tax (CTT), no stamp duty on IFSC exchange transactions
- GST exemption on offshore financial services
- Fund managers operate under a 10-year tax holiday (Section 80LA), extended through 2030
GIFT City Mutual Fund vs PMS vs AIF — Comparison
| Feature |
Mutual Fund |
PMS |
AIF |
| Minimum Investment |
$500 – $5,000 |
$75,000 |
$150,000 |
| Structure |
Pooled |
Personalised portfolio |
Privately pooled |
| Lock-in |
Scheme-dependent, often none |
Scheme-dependent |
Typically ~3 years |
| Best suited for |
First-time GIFT City investors — NRI or resident |
Investors wanting a customised portfolio |
Investors seeking alternative asset strategies |
How to Invest in GIFT City Funds with SR Wealth
For NRI & OCI Investors
- Initial consultation to identify the right product for your goals
- Remote video KYC — no visit to India required
- Open an account with an IFSC Banking Unit
- Select Mutual Fund, PMS, or AIF based on your investment size
- Ongoing portfolio monitoring and support
For Resident Indian Investors
- Initial consultation, including a review of your annual LRS usage across all remittances
- KYC and documentation
- Remittance via the LRS route (within the $250,000 annual limit)
- Select Mutual Fund, PMS, or AIF based on your investment size
- Ongoing portfolio monitoring and support
Frequently Asked Questions
Can resident Indians invest in GIFT City, or is it only for NRIs?
Both. NRIs invest directly; resident Indians invest through the LRS route, up to $250,000 per financial year.
What is the minimum investment for GIFT City AIFs?
$150,000. PMS requires $75,000, and Mutual Funds start from as little as $500.
Does a GIFT City AIF investment affect my other foreign remittances for the year?
Yes, for resident Indian investors — all LRS remittances in a financial year, across all purposes, are counted together against the $250,000 annual limit.
Are GIFT City fund gains taxable?
Non-residents benefit from reduced or zero capital gains tax on eligible securities. Tax treatment for resident Indians depends on the specific structure — please consult your tax advisor for your situation.
Is my investment fully repatriable?
Yes, GIFT City is structured to allow full repatriation of investment proceeds.
Which GIFT City Fund route should I start with?
If you're new to GIFT City, the GIFT City Fund Mutual Fund route is usually the easiest starting point, given its low minimum investment of $500.
About the Author
Paresh Chaudhary
Founder, Shree Radha Financial Services, Surat
AMFI Registered Mutual Fund & SIF Distributor — ARN: 268390
APMI Registered PMS Distributor — APRN: 05763
IRDAI Licensed Insurance Distributor
Investing since 2012 | BE Mechanical, SVNIT Surat | Ex-L&T (15+ Years)
Disclaimer: Mutual Fund investments are subject to market risks. GIFT City Fund investments — including Mutual Funds, PMS, and AIF routes — are regulated by the International Financial Services Centres Authority (IFSCA) and carry currency, market, and liquidity risks specific to their structure. Please read all scheme-related, strategy-related, and offer documents carefully before investing. Tax treatment varies by investor residency status and individual circumstances — please consult your tax advisor. Paresh Chaudhary / Shree Radha Financial Services is an AMFI Registered Mutual Fund & SIF Distributor (ARN: 268390) and APMI Registered PMS Distributor (APRN: 05763), and does not provide investment advisory services.
