Gift City Funds For NRIs | Explainer

Unlock India’s Growth: Gift City Investment Strategies for NRIs 🌍📈

India’s capital markets have long attracted global Indians looking to participate in the country’s growth. But for many global Indians, the process of investing has been riddled with high taxation, repatriation hurdles, and regulatory red tape.

That’s beginning to change with Gift City — India’s first International Financial Services Centre (IFSC).

Let’s break down why Gift City matters — and how you can benefit.

What is Gift City?

Gift City (Gujarat International Finance Tec-City) is India’s first International Financial Services Centre (IFSC), built to create a globally competitive financial hub.

With unique tax advantages, simplified onboarding, and global accessibility, Gift City is fast becoming the preferred gateway for NRIs to grow their India-linked wealth.

What Are Gift City Funds?

Gift City funds are mutual funds launched by AMCs in the Gift City. They operate under the regulations of International Financial Services Centre Authority (IFSCA). These funds invest in global markets, offering exposure to international securities such as equities and bonds. Moreover, they allow you to invest in various currencies, making investing simple and hassle-free.

Key Benefits of Investing via Gift City

1. Tax Efficiency

• No capital gains tax, no dividend distribution tax, and no securities transaction tax (STT) on Gift City-based funds.

2. Seamless Repatriation

• Investments made via Gift City are fully repatriable.

• You can bring back funds abroad without RBI approvals or delays.

3. USD-Denominated Investing

• NRIs can invest in USD or other foreign currencies, eliminating exchange rate risk when investing and redeeming.

4. Light-touch Regulatory Compliance

• Gift City operates under a separate regulator (IFSCA) and offers relaxed rules vs. traditional onshore investing.

5. Unified Global Access

• NRIs in the US, UAE, Singapore, UK, and other countries can invest just like domestic investors, without needing an Indian bank account.

Note: Gift City regulations and tax treatments are still evolving and subject to change. You are advised to consult with a qualified tax advisor or financial planner before making investment decisions.

What Can You Invest in?

• India-focused Mutual Funds (launched from Gift City)

• Portfolio Management Services (PMS)

• Alternate Investment Funds (AIFs)

• International ETFs, bonds, and other instruments

These products are offered by top AMCs and wealth managers through their IFSC-regulated arms, including ICICI, HDFC, Kotak, and PhillipCapital.

What Makes Gift City Different from Traditional NRI Investment Options?