GIFT City Funds
Your Gateway to International Markets
What are GIFT City Funds?
GIFT City Funds refer to investment vehicles set up in the Gujarat International Finance Tec-City (GIFT City), India's first operational International Financial Services Centre (IFSC). These funds provide global and domestic investors with access to a regulated, tax-efficient, and innovation-driven investment environment that matches international standards. Established to transform India into a global financial hub, GIFT City offers fund managers the opportunity to set up Alternative Investment Funds (AIFs), Mutual Funds, Family Offices, and other capital market instruments under the jurisdiction of the International Financial Services Centres Authority (IFSCA), which regulates the financial entities in GIFT City independently from SEBI and RBI.
Why is GIFT City Important for Investment?
GIFT City bridges the gap between India's domestic financial markets and international investors by offering a globally competitive platform with simplified regulations, seamless fund registration, and access to a wide range of asset classes. It allows Indian fund managers to raise and deploy capital globally while offering international investors a direct route into India's growth story. The key attraction lies in the tax benefits-such as zero capital gains tax for non-residents on trading in Indian-listed securities, no dividend distribution tax, and exemptions on GST for select services. Additionally, there are no stamp duties and the onboarding process is faster compared to traditional regulatory regimes, making GIFT City Funds a preferred vehicle for high-value investors, NRIs, institutional entities, and family offices.
How Do GIFT City Funds Work?
Fund managers registered under IFSCA can launch various types of funds including Category I, II, and III AIFs, similar to SEBI's classification, but with global outreach. These funds can pool capital from foreign or domestic investors and deploy it across Indian or international markets depending on their fund structure and objective. Each fund operates under a fund management entity that must meet minimum capital and compliance norms laid out by IFSCA. Investor onboarding is streamlined with KYC norms aligned to global standards, and funds enjoy operational flexibility in terms of asset allocation, currency denomination, and strategic freedom.
Types of Funds in GIFT City
GIFT City enables the launch of various fund structures, such as:
- Alternative Investment Funds (AIFs) - Categories I, II, III for private equity, hedge funds, and venture capital.
- Mutual Funds- Including ETFs, global feeder funds, and sector-specific schemes.
- Private Trusts and Family Offices- TFor customized wealth management.
- Infrastructure and Real Estate Investment Funds (REITs/InvITs)- With offshore and Indian deployment flexibility.
Each fund type can be tailored to different risk-return profiles and investor types-from HNIs to global institutions.
Who Should Consider GIFT City Funds?
GIFT City Funds are ideal for high-net-worth individuals, NRIs, foreign institutional investors, fund houses, and family offices looking for an India-entry strategy or global diversification via an Indian jurisdiction. It suits investors who demand regulatory transparency, operational efficiency, and access to emerging market opportunities without tax inefficiencies or rigid structures.
The Future of Investing from GIFT City
With growing government support and the IFSCA actively promoting ease of doing business, GIFT City is fast becoming a global asset management hub. As more international investors seek India-focused exposure and Indian managers look for global fundraising, GIFT City Funds provide the perfect platform to bridge capital, compliance, and innovation. It not only brings India closer to global financial hubs like Singapore and Dubai but positions it as a competitive player in the world of offshore finance and fund management.