Two directions: Outbound — resident Indians investing globally via LRS (USD 150K+ minimum, LTCG 12.5%); Inbound — NRIs and foreign investors accessing India through GIFT City (from USD 10K for Accredited, zero capital gains tax in India).
USD-denominated global funds accessible to resident Indians via LRS. Close-ended and open-ended options. Higher minimums and lock-in — but access to institutional-grade global strategies unavailable through domestic mutual funds.
GIFT City inbound AIFs allow NRIs, OCIs, and foreign investors to access Indian equity markets through an offshore structure — with zero capital gains tax, no PAN requirement, and full repatriability. Resident Indians are not eligible.
Inbound AIF tax advantage: NRIs and OCIs investing through GIFT City inbound AIFs pay zero capital gains tax in India — the GIFT City IFSC is a special economic zone outside India's domestic tax jurisdiction. No GST on management fees. No PAN required. Income and gains are freely repatriable. Tax obligations may still apply in the investor's country of residence — always verify with your CA or tax advisor.
AIF taxation for residents: LTCG (above 24 months) at 12.5% + surcharge. STCG (below 24 months) at the applicable slab rate (max 30%) + surcharge. The Mirae Asset fund explicitly targets holding ETFs for minimum 24 months for efficient taxation. A 20% TCS applies on LRS remittances above INR 10 lakh — refundable via ITR. NRI investors are fully exempt from Indian capital gains tax on Cat III AIF returns. Always verify with your CA before investing.