NRI · 4 min read
GIFT City Investments
for NRIs
GIFT City lets NRIs invest through India's international financial centre in US dollars, without converting to rupees. It suits some portfolios and adds cost to others.
Ravinder Pal Singh Ubeja ·
GIFT City funds let you invest in dollars through India's international financial services centre. They make most sense for larger, dollar-based portfolios; for many NRIs, regular mutual funds through an NRE account remain simpler.
What GIFT City is
GIFT City in Gujarat houses India's International Financial Services Centre (IFSC), regulated by the IFSC Authority rather than SEBI. Funds based there accept investments in foreign currency, so an NRI can invest in dollars and receive proceeds in dollars.
What you can invest in
- Funds managed from the IFSC, including feeder funds into Indian and global portfolios.
- Alternative investment funds set up in the IFSC, usually with high minimum investments.
- Dollar deposits and other products from banks' IFSC units.
Why NRIs consider it
- No conversion into rupees and back, which avoids currency spreads.
- Accounts and paperwork designed for non-residents.
- A separate tax framework with concessions for non-residents on some products.
Who it suits
It tends to suit NRIs with large dollar savings who want Indian exposure without converting currency, or who plan to stay abroad permanently. For a monthly SIP from an NRE account, or for money you will spend in India, regular Indian mutual funds are usually simpler and cheaper.
Tax treatment depends on the product and changes with budgets, so we confirm it for each option before you invest.