• Structure: These funds can be structured as offshore funds, feeder funds, or direct funds that invest in global assets like international equities, debt, and derivatives.
• Regulation: They are regulated by the IFSCA, which is part of India's International Financial Services Centre (IFSC).
• Investment access: They provide a more direct and streamlined way for Indian residents and NRIs to invest in international markets through a regulated hub within India.
• Currency: Many funds are USD-denominated, simplifying currency management for international investments.

Types of funds: The offerings include a range of products such as:

• Mutual funds (including Feeder Funds and Fund of Funds)
• Alternative Investment Funds (AIFs)
• Portfolio Management Services (PMS)
• Global Equity Funds

Tax efficiency: They can offer tax advantages, particularly for NRIs, through structures that aim to reduce costs and taxes compared to other methods of international investing.

How they work

• Fund management entities are established within GIFT City's IFSC and are registered with the IFSCA.
• These entities offer various financial products that invest in global assets, often by investing in international ETFs or directly holding global stocks.
• For example, a "feeder fund" might invest in a master fund that holds global assets, while a "direct fund" would own the global stocks itself.

Examples of GIFT City funds

• DSP Global Equity Fund: A retail fund that directly invests in a diversified portfolio of global companies across markets like the US, Europe, and Asia.
• PPFAS Global Funds: These funds invest in accumulating ETFs/UCITS that track indices like the S&P 500 and NASDAQ 100.
• Tata Asset Management IFSC Investment: This is an example of a feeder fund that invests in a portfolio of Indian mutual funds and ETFs, aiming to generate capital appreciation.