GIFT City Mutual Funds —
Inbound & Outbound

11 IFSCA-registered retail schemes. Daily NAV. Daily dealing. USD 500 minimum to start. No lock-in. Tax handled at fund level. All in one place, with Tequity's view on each.

IFSCA Regulated Daily NAV & Dealing Tax at Fund Level From USD 500 No Lock-in
11
Retail Schemes Registered
6
Inbound (India Equity for NRIs)
5
Outbound (Global for Residents)
$500
Lowest Minimum to Start

First: which direction do you need?

Back to Gift City overview

India Equity Funds for NRIs & Foreign Investors

All six inbound retail schemes are feeder funds — each one invests 90–100% of its assets into an existing domestic SEBI-registered Indian mutual fund. You get the same portfolio as an Indian domestic investor, in USD, without Indian account paperwork.

What is a feeder fund? A feeder fund collects capital in USD at GIFT City and deploys it entirely into a single domestic "master fund" in India. The domestic fund does the actual stock selection; the GIFT City feeder provides the USD denomination, IFSCA regulation, and tax exemption for non-residents. When you invest in a GIFT City feeder, you are effectively getting the same portfolio as lakhs of Indian investors in that fund — just accessed from abroad, cleanly, in dollars.

Inbound Feeder Fund
Tata India Dynamic Equity Fund
Tata Asset Management (IFSC) · Fund Manager: Aditya Shanker

Dynamically allocates across India equity MFs and ETFs: 50–100% in core broad-market (large, mid, small cap) and 0–50% in a thematic satellite overlay — technology, energy, or healthcare. The manager adjusts the mix based on market conditions.

$500
Min. Investment
TER
Exit Load

At USD 500, the lowest minimum of any GIFT City retail scheme — the cleanest entry point for an NRI testing India equity via GIFT City. The dynamic allocation (core + thematic satellite) adds a layer of active management that pure feeder funds don't offer.

Inbound Feeder Fund
Sundaram India Mid Cap — GIFT Fund
Sundaram Asset Management (IFSC) · Fund Manager: Saurabh Kapadia

Feeds 90–100% into Sundaram Mid Cap Fund — one of India's established mid-cap equity strategies. Mid cap historically delivers higher long-term returns than large cap, with higher short-term volatility. Suitable for a 5+ year investment horizon.

$5,000
Min. Investment
TER
Exit Load

The only GIFT City retail scheme with a pure India mid-cap mandate. If you want the manager to decide the market-cap mix, look at the flexi-cap options; if you want a deliberate mid-cap tilt, this is the right product.

Inbound Feeder Fund
Parag Parikh India Flexi Cap Fund
PPFAS Alternate Asset Managers IFSC · Fund Manager: Akshay Falgunia

Feeds into PPFAS Flexi Cap Fund — one of India's most respected value-oriented equity funds. Invests in low-debt, high-cash-flow businesses at reasonable valuations, across market caps. Includes a small international allocation (20–35% typically). Disciplined buy-and-hold.

$10,000
Min. Investment
0.30% / 1.00%
TER (Direct / Regular)
2% · 1% · Nil
Exit Load (Yr 1 · 2 · 3+)

The strongest underlying track record of the six inbound schemes — PPFAS Flexi Cap has compounded at a level that few domestic funds match over 10 years. The 2% exit load in Year 1 signals this is not a short-term product. Suited for patient investors with a 3+ year view who align with PPFAS's quality-first philosophy.

Inbound Feeder Fund
NJ India Opportunities Fund
NJ Asset Management (IFSC) — NJ Group

Feeds 90–100% into NJ Flexi Cap Fund — a domestic SEBI open-ended dynamic equity scheme investing across large, mid, and small cap Indian stocks. NJ Group is India's largest mutual fund distributor network; NJ AMC is their fund management arm.

$10,000
Min. Investment
TER
Exit Load

No capital gains tax for non-residents — confirmed explicitly in the fund's official documents. NJ AMC is a newer entrant to active fund management (NJ Group's strength is distribution, not asset management). Compare with the PPFAS Flexi Cap feeder above before choosing between the two flexi-cap options.

Inbound Feeder Fund Data Pending
Baroda BNP Paribas Gift Multicap Fund
Baroda BNP Paribas Asset Management India (IFSC)

Feeds into Baroda BNP Paribas Multicap Fund — a domestic SEBI multicap scheme. Multicap mandates are required to hold at least 25% each in large, mid, and small cap stocks by SEBI rules, offering more balanced exposure across India's market-cap spectrum than a flexi-cap fund.

⚠ Minimum investment, TER, and exit load not yet publicly disclosed. Contact Tequity for latest terms.
TBD
Min. Investment
TBD
TER
TBD
Exit Load

Baroda BNP Paribas also operates a separate Gift US Small Cap AIF at GIFT City — an outbound product with a completely different direction. Do not confuse the two. Reach out to Tequity once terms are confirmed.

Inbound Feeder Fund Data Pending
Edelweiss India Opportunities Fund
Edelweiss Asset Management (IFSC)

Feeds into a domestic Edelweiss India equity scheme. Specific underlying fund pending confirmation. Broad India equity strategy — large to mid cap opportunities.

⚠ Underlying fund, minimum investment, TER, and exit load not yet confirmed. Contact Tequity for latest terms.
TBD
Min. Investment
TBD
TER
TBD
Exit Load

Note: Edelweiss also operates the Greater China Equity Fund at GIFT City — that is a completely separate outbound fund (invests in China/Taiwan/HK equities). This fund is inbound only.

Global Equity Funds for Residents & NRIs

Five funds investing outside India — in the US, globally, and in Greater China. Available to Resident Indians via LRS (up to USD 250,000/year) and to NRIs. These bypass the SEBI overseas investment ceiling that has restricted domestic international funds since 2022.

Passive — Fund of Funds

These funds invest in a UCITS ETF listed in Europe. The GIFT City fund is the USD wrapper; the ETF tracks the index. Low cost, predictable tracking, no active manager risk.

Outbound · Passive FoF → UCITS ETF
Parag Parikh IFSC S&P 500 Fund of Fund
PPFAS Alternate Asset Managers IFSC · Ticker: PPISP500

Passively tracks the S&P 500 Net Total Return Index via the Invesco S&P 500 UCITS ETF Acc — a physically-replicating ETF that holds all 500 US stocks in proportion to their index weight. Launched March 20, 2026.

$5,000
Min. Investment
0.35%
All-in TER p.a.
None
Exit Load
Since Inception
+10.02% vs S&P 500 +10.86%
AUM (Apr 2026)
USD 6.43M

At 0.35% all-in vs domestic international FoFs charging 1–2%+, this is the cheapest way to own the S&P 500 from India. No exit load makes it the most liquid of the five outbound retail funds. Top sectors (Mar 2026): IT 32.3%, Financials 12.5%, Communication Services 10.5%.

Outbound · Passive FoF → UCITS ETF
Parag Parikh IFSC Nasdaq 100 Fund of Fund
PPFAS Alternate Asset Managers IFSC · Ticker: PPINDX100

Passively tracks the Nasdaq 100 Net Total Return Index via the Invesco NASDAQ-100 Swap UCITS ETF Acc — a synthetic (swap-based) ETF. 65% tech-adjacent exposure: IT 50.2%, Communication Services 15.3%. Launched March 20, 2026.

$5,000
Min. Investment
0.50%
All-in TER p.a.
None
Exit Load
Since Inception
+13.94% vs Nasdaq 100 +14.90%
AUM (Apr 2026)
USD 7.44M
Note on synthetic replication: Unlike the S&P 500 fund whose ETF holds actual stocks, this ETF achieves index returns via a swap agreement with a bank counterparty — not by holding the underlying Nasdaq 100 stocks. Returns mirror the index (net of fees), but there is counterparty risk in addition to market risk. UCITS synthetic ETFs carry mandatory collateral requirements under European regulations — this is a well-understood, regulated structure, not a hidden risk. Understand it before investing.

Pure-play US tech. Costs 0.15% more than the S&P 500 sibling due to the underlying ETF's higher expense ratio. Choose this over the S&P 500 fund only if you specifically want concentrated technology exposure and understand the higher volatility that comes with it.

Outbound · Active FoF FoF → JPM Luxembourg
Edelweiss Greater China Equity Fund
Edelweiss Asset Management (IFSC) · FMs: Bhavesh Jain & Bharat Lahoti

Feeds into JPMorgan Funds – Greater China Fund (Luxembourg SICAV, AUM USD 176.7M). The JPM fund invests in companies across Mainland China (58.4%), Taiwan (38.7%), and Hong Kong (2.8%) — focused on Technology, Carbon Neutrality, and Consumption. Benchmark: MSCI Golden Dragon Index.

$5,000
Min. Investment
~0.80% / ~1.80%
TER (Direct / Regular)
2% · 1% · Nil
Exit Load (tiered)
JPM Greater China performance (USD, Feb 2026)
+30.97%
1 Year
+8.62%
3 Year
-2.52%
5 Year
+9.83%
10 Year

The only GIFT City retail mutual fund giving concentrated access to China, Taiwan, and Hong Kong in one product. 5-year rolling returns near historical lows — which is exactly the mean-reversion case for this allocation. Redemption payout is T+10 business days (slower than all other outbound retail MFs). The tiered exit load reinforces a minimum 2-year view. Treat as a tactical allocation (10–15% of global portion), not a core holding.

S&P 500 FoF vs Nasdaq 100 FoF — Side by Side

Factor S&P 500 FoF Nasdaq 100 FoF
All-in TER0.35% p.a.0.50% p.a.
Exit loadNoneNone
Since inception (Mar 20, 2026)+10.02%+13.94%
AUM (Apr 2026)USD 6.43MUSD 7.44M
Underlying ETF typePhysical replicationSynthetic (swap)
No. of stocks500 (all sectors)100 (tech-heavy)
IT + Comm Services weight~43%~65%
Volatility profileLower (diversified)Higher (concentrated tech)

Both launched on the same date (March 20, 2026). Both have the same fund manager (Akshay Falgunia) and no exit load. The choice is entirely about concentration: broad US market vs pure US tech, and 0.15% more cost for the Nasdaq exposure.

Active — Direct Portfolio

These fund managers build a portfolio of individual global stocks directly — no underlying ETF or master fund. The GIFT City fund IS the portfolio.

Outbound · Active Direct Portfolio
DSP Global Equity Fund
DSP Fund Managers IFSC · Benchmark: MSCI ACWI Index

Concentrated 27–30 stock portfolio built bottom-up, without constraint to any index. Deliberately underweight the US vs MSCI ACWI (29% vs ~65%). Zero AI hardware exposure by design. Cash held at 27.1% (Apr 2026) — not a market call, but a result of the manager not finding enough ideas at the right price.

$5,000
Min. Investment
1.00% / 1.75%
TER (Direct / Regular)
1% <2 yrs
Exit Load
Since Inception (Sep 22, 2025)
~–5% p.a. (Reg) vs MSCI ACWI +10.85%
AUM (Apr 2026)
USD 28M (largest)

DSP's underperformance since launch is real and documented — it reflects a value/quality manager in a market that rewarded US mega-cap momentum and AI hardware in 2024–25. The USD 28M AUM despite this track record suggests investors are backing the thesis, not the recent numbers. Suitable only for those who (a) believe US index concentration is a risk worth avoiding, (b) can tolerate 2–3 years of underperformance, and (c) have a 5+ year horizon.

Outbound · Active Direct Portfolio
Marcellus Global Equities Fund
Marcellus Investment Managers (IFSC) · Registered May 2026

Concentrated global equity around 4 structural megatrends: (1) Defence & Aerospace — annual global capex >USD 1 trillion; (2) Power Generation — 4% p.a. demand growth post-AI buildout; (3) Ancillary AI Capex — chip foundries & data centres (TSMC, Amphenol); (4) Luxury Consumption — iconic pricing-power brands. US-based research team (Arindam Mandal, New York).

$5,000
Min. Investment
2.00%
TER (Regular)
2% <24 mos
Exit Load
GCP PMS proxy performance (Oct 2022 – Apr 2026) — not the retail scheme's track record
19.86% CAGR (USD)
Since inception
vs S&P 500: 20.40%
Same period
vs Nifty 50: 5.23%
USD terms

Highest cost of the five outbound retail MFs (2% TER + 2% exit load). The premium is justified only with a 3+ year hold and conviction in the megatrend thesis. The retail scheme is new (registered May 2026) with no independent track record yet — the GCP PMS proxy data is illustrative, not representative of this scheme's actual performance. NRI/OCI eligibility not yet explicitly confirmed — check before investing.

Eligibility at a Glance

Different funds, different eligibility rules. Use this as a starting filter — verify the specific fund's offer document before investing.

Investor Type Inbound Funds (India equity) Outbound Passive (PPFAS) Outbound Active (DSP, Marcellus) Edelweiss Greater China
Resident Indian ✗ Not eligible ✓ Via LRS ✓ Via LRS ✓ Via LRS/OPI
NRI / OCI ✓ Eligible ✓ Eligible ✓ Eligible ⚠ US/Canada NRIs excluded (FATCA)
US/Canada-based NRI ⚠ Verify per fund (FATCA) ⚠ Likely excluded — verify ⚠ Likely excluded — verify ✗ Explicitly excluded
Foreign national ✓ FATF-compliant countries ⚠ Varies by fund ⚠ Varies by fund ✓ FATF-compliant
Indian Corporate ✗ Not eligible ⚠ Varies ✓ Marcellus specifically includes ⚠ Verify

This table is a summary for general orientation only. Always verify eligibility in the fund's official offer document or with Tequity before proceeding.

Frequently Asked Questions

What is the difference between inbound and outbound mutual funds at GIFT City?+
Inbound funds are for NRIs and foreign investors bringing money into India — they invest in Indian equity (large cap, mid cap, flexi cap). Outbound funds are for Resident Indians (via LRS) and NRIs who want to invest in global markets — US equities, Nasdaq 100, Greater China. The direction determines who can invest, what markets are accessed, and how returns are taxed.
What does "feeder fund" mean in the context of GIFT City mutual funds?+
A feeder fund invests substantially all of its capital into a single master fund. All six inbound GIFT City retail schemes are feeders into domestic SEBI-registered Indian mutual funds. The GIFT City feeder provides the USD denomination, IFSCA regulation, and tax exemption for non-residents — the underlying domestic fund does the actual stock-picking. Among outbound funds, PPFAS S&P 500 and Nasdaq 100 are FoFs (feeders into UCITS ETFs), and Edelweiss Greater China is a feeder into the JPMorgan Luxembourg fund. DSP and Marcellus are not feeders — they manage direct portfolios.
Can Resident Indians invest in inbound GIFT City funds?+
No. Inbound GIFT City funds are designed for NRIs, PIOs, and foreign investors bringing foreign currency into India. Resident Indians cannot invest in inbound funds — but they can invest in outbound funds under the LRS limit of USD 250,000 per financial year.
How is tax handled in these mutual funds?+
Tax handling differs by direction and investor category. For inbound funds: non-residents (NRIs, OCIs, foreign investors) are fully exempt from Indian capital gains tax on IFSC fund units — confirmed in the funds' official documents. For outbound funds: the fund handles tax at the fund level and publishes three NAVs — Subscription NAV, Redemption NAV (Long-term post-tax), and Redemption NAV (Short-term post-tax). This is confirmed directly from PPFAS factsheets (April 2026). When you redeem, you receive the post-tax NAV applicable to your holding period — the fund has already discharged the tax before declaring that figure. The specific rates and holding period thresholds are not stated in the factsheets — refer to the fund's Scheme Information Document or verify with your CA before investing.
Does LRS apply to GIFT City mutual fund investments?+
For Resident Indians investing in outbound funds: yes, the USD remittance from your Indian bank account to the GIFT City fund counts toward your annual LRS limit of USD 250,000. LRS remittances above ₹10 lakh also attract 20% TCS (Tax Collected at Source) — this is advance tax, refunded against your ITR, not an extra cost. For NRIs remitting from abroad, LRS typically does not apply to outbound funds.
What is the difference between physical and synthetic ETF replication?+
A physically-replicating ETF (like the Invesco S&P 500 UCITS ETF used by PPFAS S&P 500 FoF) holds the actual underlying stocks in proportion to the index. A synthetic (swap-based) ETF (like the one used by PPFAS Nasdaq 100 FoF) achieves index returns through a swap agreement with a bank counterparty — without holding the underlying stocks. Both deliver index-level returns (net of fees), but synthetic ETFs add counterparty risk in addition to market risk. UCITS synthetic ETFs in Europe are regulated with strict collateral requirements, making them a standard and well-understood instrument. For retail investors, the practical difference in returns is minimal — but understanding the structure matters.
Can US-based NRIs invest in GIFT City mutual funds?+
Most GIFT City funds exclude US and Canada-based persons due to FATCA and PFIC (Passive Foreign Investment Company) regulations. The Edelweiss Greater China fund explicitly excludes US/Canada-based investors. Other funds' exclusion policies should be verified in the offer document before investing. If you are a US-based NRI, contact Tequity — we will check the current eligibility for each fund on your behalf.

Not Sure Which Fund
Fits Your Situation?

The right choice depends on your investor category, corpus size, tax position, liquidity needs, and existing portfolio. We cut through the complexity and give you a clear, honest recommendation — no product pushing, no commissions influencing our view.

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