India is now home to its first and only International Financial Services Centre (IFSC) known as Gujarat International Finance Tec-City (GIFT City). Nestled strategically between Ahmedabad and Gandhinagar in Gujarat, GIFT City is fast emerging as a global hub for finance and technology. But what makes it truly unique?
It’s established with the vision to create a globally competitive financial hub. The city is rapidly gaining momentum as a destination of choice for global investors, NRIs, financial institutions, and multinational corporations seeking high returns and favorable regulatory frameworks. The idea is to attract global financial institutions, fintech companies, and real estate investors by offering tax benefits, simplified compliance, and regulatory incentives. In simple words, though it is located within India, it is considered a jurisdiction separate from the rest of India.
Investment options available in GIFT city:
Investments for NRIs:
For Non-Resident Indians (NRIs), GIFT City offers several key advantages. NRIs can invest in a range of financial products, including Mutual Funds, AIF, Bonds, Equities, even in government securities and derivatives through the IFSC. The city’s simplified tax regime, ease of repatriation, and global connectivity make it an ideal place for NRIs to diversify their portfolios and benefit from India’s economic growth.
Tax benefits for NRIs – Gift City funds are exempt from tax deducted at source (TDS). Moreover, they operate in tax-friendly jurisdictions, offering lower rates of taxes on capital gains.
Investments for Indian residents:
Investing in GIFT City can be beneficial for Indian residents, due to its tax advantages, access to global markets, and a streamlined regulatory framework. It allows investors to make investments in their home currency and withdraw funds in their local currency, protecting them from currency fluctuations. Indian residents can invest in GIFT city only under the Liberalised Remittance Scheme (LRS) scheme, which has a limit of USD 250,000 per financial year.
List of Funds currently available in GIFT city:
As per the GIFT IFSC website, over 94 Fund management entities are registered. Some of the funds registered in GIFT city are as follows:
Fund house | AIF scheme name | AIF Category offered |
ABSL | ABSL Global Emerging Market Equity Fund (IFSC) | Cat-II |
ABSL Index Linked Fund (IFSC) | Cat-III | |
DSP | DSP India Absolute Return Fund | Cat-III |
DSP India IFSC Fund | Cat-III | |
HDFC | HDFC Capital Fund of Funds- 3 | Cat-II |
HDFC India Balanced Advantage Fund | Cat-III | |
HDFC India Equity Savings Fund | Cat-III | |
HDFC India Flexi Cap Fund | Cat-III | |
HDFC India Mid-Cap Opportunities Fund | Cat-III | |
HDFC India Nifty 50 Fund | Cat-III | |
HDFC India Small Cap Fund | Cat-III | |
IIFL | IIFL India Opportunities Fund | Cat-II |
ITI | ITI Long-Short Equity Offshore Fund (IFSC) | Cat-III |
Kotak | Kotak Data Center Fund IFSC | Cat-II |
Kotak India Commercial Real Estate Fund IFSC | Cat-II | |
Kotak Performing RE Credit Strategy Fund II IFSC | Cat-II | |
Kotak Real Estate Fund- X IFSC | Cat-II | |
Kotak Strategic Situations Fund – II IFSC | Cat-II | |
Mirae | Mirae Asset India Equity Allocation Fund | Cat-III |
SBI | SBI Investment Opportunities Fund (IFSC) | Cat-III |
Risks Of Investing in Gift City:
– High minimum investment: The minimum investment in Gift City funds is USD 150,000 or above, making it only accessible to individuals with sizable investable assets.
– Liquidity: Gift City funds have lower liquidity when compared to mutual funds making it difficult to sell your investments quickly.
Conclusion:
GIFT City is more than a smart city – it’s a smart investment. Whether you’re seeking wealth creation through Mutual Funds or AIFs, stability through bond funds, or through real estate, GIFT City offers a compelling platform to diversify and enhance your portfolio. In a world of evolving financial landscapes, GIFT City is not just a destination—it’s a vision of the future.
To understand more on the topic as well as to start investments please feel free to contact us:
Phone: +91-9324609115
E-mail: team@richvikwealth.in
The article is authored by Ms. Taqdees Sheikh from Team RichVik.