What is the total expense ratio (TER) of PPFAS S&P 500 FoF?

The all-in TER is 0.35% per annum: 0.30% at the GIFT City fund level plus 0.05% from the underlying Invesco UCITS ETF. This compares with 1–2% charged by domestic international funds of funds subject to SEBI's overseas investment cap.

Can Resident Indians invest in this fund?

Yes. Resident Indians can invest via LRS (Liberalised Remittance Scheme) up to USD 250,000 per financial year. LRS remittances above ₹10 lakh attract 20% TCS (refunded against your ITR). Minimum investment is USD 5,000.

How is capital gains tax handled?

Tax is handled at the fund level. The fund calculates and pays applicable capital gains tax, then publishes three NAVs: Subscription NAV, Redemption NAV (Long-term post-tax: 108.71 as of April 30, 2026), and Redemption NAV (Short-term post-tax: 106.29 as of April 30, 2026). Investors redeem at the NAV corresponding to their holding period — the tax has already been discharged before that figure is declared. The specific rates and holding period thresholds applicable to your situation should be confirmed in the fund's Scheme Information Document or with your CA.

What is the minimum investment in PPFAS S&P 500 FoF?

USD 5,000 minimum initial investment, with additional investments in multiples of USD 500.

Parag Parikh IFSC S&P 500 Fund of Fund — GIFT City

Q: What does the PPFAS S&P 500 Fund of Fund invest in?

It invests 99.90% of its assets in the Invesco S&P 500 UCITS ETF Acc — a physically-replicating ETF listed in Europe that holds all 500 US stocks in proportion to their index weight. The fund is domiciled in GIFT City IFSC and provides USD-denominated S&P 500 exposure to Indian residents and NRIs.

Fund Overview

Full Name	Parag Parikh IFSC S&P 500 Fund of Fund
Fund Manager	Mr. Akshay Falgunia
AMC	PPFAS Alternate Asset Managers IFSC Pvt. Ltd.
IFSCA Reg. No.	IFSC/Retail/2025-26/005
Structure	Open-ended passive Fund of Funds (FoF)
Underlying ETF	Invesco S&P 500 UCITS ETF Acc — physical replication (99.90% of portfolio)
Benchmark	S&P 500 Net Total Return Index
Currency	USD
Min. Investment	USD 5,000 · Additional: USD 500
TER	0.30% (fund) + 0.05% (underlying ETF) = 0.35% all-in
Exit Load	None — no entry or exit load
NAV (Apr 30, 2026)	LT post-tax: 108.71 · ST post-tax: 106.29
NFO Allotment Date	March 20, 2026
IFSCA Reg. Date	November 14, 2025
Dealing	Daily NAV · Daily subscription and redemption
Custodian / Banker	Kotak Mahindra Bank
Trustee	Axis Trustee Services Limited

How the Fund Works — Physical ETF Replication Explained

This fund is a two-layer structure. The GIFT City fund (PPISP500) is your entry point — it accepts USD, is regulated by IFSCA, and handles Indian tax provisioning at the fund level. It invests 99.90% of its assets into the Invesco S&P 500 UCITS ETF Acc, which is listed on European exchanges.

The underlying ETF uses physical replication: it holds all 500 US stocks in the same proportions as the S&P 500 index — not through a swap or a derivative, but by actually buying the shares. This is the gold standard of index replication. There is no counterparty bank whose default you need to worry about — you own a proportionate claim on 500 of the world's largest companies.

The minor tracking difference (~0.75–0.80%) arises because European markets and US markets have a 4–5 hour non-overlapping window. When the ETF NAV is set in Europe, US markets haven't moved yet for the day. This difference cancels out the following trading day. It is not a cost — it is a timing artifact.

The Invesco S&P 500 UCITS ETF is one of Europe's largest and most liquid index ETFs. UCITS (Undertakings for Collective Investment in Transferable Securities) is the European regulatory standard equivalent to SEBI in India — highly regulated, investor-protective. The "Acc" suffix means it is accumulating: dividends are reinvested automatically, not paid out.

Performance (as of April 30, 2026)

Since Inception (Mar 20, 2026)

+10.02%

vs S&P 500 NTR: +10.86%

USD 100 grew to (scheme)

USD 110.02

vs benchmark: USD 110.86

The fund has been live for only ~6 weeks as of April 30, 2026 — not enough history for meaningful return comparisons. The ~0.84% tracking difference is within expected range for a UCITS FoF with a European/US window gap. Both PPFAS funds (S&P 500 and Nasdaq 100) were allotted on the same date and have the same fund manager (Akshay Falgunia). Longer performance history will accumulate as the fund matures.

S&P 500 Sector Allocation (March 2026)

Information Technology

32.3%

Financials

12.5%

Communication Services

10.5%

Consumer Discretionary

10.0%

Health Care

9.8%

Industrials

9.3%

Consumer Staples

5.4%

Energy

3.5%

Utilities

2.5%

Others

4.1%

Sector weights as of March 2026 (underlying Invesco ETF). The S&P 500 is tech-heavy (32.3% IT) but meaningfully diversified across Financials, Healthcare, Industrials, and Consumer sectors. This diversification is what separates it from the Nasdaq 100, which concentrates 65%+ in IT and Communication Services.

Tequity's Analysis

The Cheapest S&P 500 Access from India — and Why That Matters

The PPFAS S&P 500 FoF is straightforward: passive, physical, cheap, liquid. At 0.35% all-in vs domestic international FoFs charging 1–2%+, it is the lowest-cost route to the S&P 500 for anyone investing from India. The absence of an exit load makes it the most flexible of all five outbound retail funds — you can redeem any day without penalty.

Cost advantage is durable: The 0.30% fund-level TER has headroom (IFSCA cap allows up to higher). PPFAS chose the lowest defensible number. Domestic S&P 500 FoFs are structurally capped by SEBI's overseas investment ceiling — they cannot buy more units in their underlying ETF when the cap fills. The GIFT City structure has no such constraint.
Tax is handled at the fund level: The fund declares two separate redemption NAVs — Long-term post-tax and Short-term post-tax — confirmed in the April 2026 factsheet. Investors redeem at the NAV for their holding period; the fund has already discharged the applicable tax before declaring it. Verify the applicable rates and thresholds with the SID or your CA.
Physical replication gives clarity: Unlike the Nasdaq 100 sibling (synthetic ETF), this fund holds actual stocks. For investors who want to know exactly what they own, physical is cleaner. The counterparty risk that exists in swap-based structures does not apply here.
Suitable as a core global allocation: The S&P 500 is the broadest, most diversified US large-cap index. For most investors, this is the right default — not the Nasdaq 100 (more concentrated in tech) and not a single active manager. If you want US equity exposure in your global allocation, start here.

Who this is for: Resident Indian investors using LRS for global diversification; NRIs and OCIs seeking passive, low-cost US equity exposure; investors who prefer index investing over active management for global allocation. Minimum 3-year horizon recommended for meaningful S&P 500 return capture.

Caveat: The fund is only ~6 weeks old as of April 2026. AUM is modest (USD 6.43M). Liquidity risk for very large redemptions (>USD 500K+) should be checked before investing at that scale. For most retail and HNI investors, this is not a concern.

S&P 500 FoF vs Nasdaq 100 FoF — Which One?

Factor	S&P 500 FoF	Nasdaq 100 FoF
All-in TER	0.35% p.a.	0.50% p.a.
Exit load	None	None
Since inception	+10.02%	+13.94%
ETF type	Physical	Synthetic (swap)
No. of stocks	500 (all sectors)	100 (tech-heavy)
IT + Comm Services	~43%	~65%
Volatility	Lower (diversified)	Higher (concentrated)

Both funds launched March 20, 2026 with the same fund manager. The Nasdaq 100 has returned more since inception — but that reflects 6 weeks of tech outperformance in a bull run. Over a full market cycle, diversification in the S&P 500 typically reduces drawdowns. Choose S&P 500 for broad US exposure; choose Nasdaq 100 only if you specifically want concentrated US tech and understand the higher volatility.

Frequently Asked Questions

What does this fund invest in?+

99.90% in the Invesco S&P 500 UCITS ETF Acc — a physically-replicating ETF listed in Europe that holds all 500 US stocks in proportion to their index weight. The remaining 0.10% is cash. The GIFT City fund is the USD wrapper; the underlying ETF does the actual index replication.

Why is the TER only 0.35% when domestic S&P 500 funds charge 1–2%?+

Domestic international FoFs are subject to SEBI's overseas investment cap (frozen since 2022). Their larger AUM spread over a frozen pool drives up effective costs and tracking errors. The GIFT City fund has no such cap — it routes directly to the UCITS ETF and charges only what it needs to operate. At 0.30% fund-level + 0.05% underlying ETF = 0.35% total. This is structurally lower, not a loss-leader.

Does LRS apply to this investment?+

Yes, for Resident Indians. The USD you remit 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, not an additional expense, and is refunded against your ITR for the year.

How is capital gains tax managed?+

At the fund level. The fund publishes three NAVs — Subscription NAV, Redemption NAV (Long-term post-tax), and Redemption NAV (Short-term post-tax) — as confirmed in the April 2026 factsheet. You redeem at the 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 factsheet — refer to the fund's Scheme Information Document or your CA for those details.

Is this suitable for NRIs?+

Yes, NRIs and OCIs are eligible investors. Non-residents benefit from full CGT exemption on IFSC fund units — no Indian capital gains tax at all. US and Canada-based NRIs should check before investing due to FATCA/PFIC complications — contact Tequity for a fund-specific eligibility check.

What is the dual NAV system?+

PPFAS declares two different redemption NAVs to handle different tax rates for different holding periods. If you held >24 months (long-term), you redeem at the LT post-tax NAV (108.71 as of Apr 30, 2026) — higher, because LTCG at 12.5% has been provisioned. If held <24 months, you redeem at the ST post-tax NAV (106.29) — lower, because STCG at 30% has been provisioned. The subscription NAV is the same regardless.

Invest in This Fund

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Quick Facts

Min. InvestmentUSD 5,000

Min. AdditionalUSD 500

All-in TER0.35% p.a.

Exit LoadNone

AUM (Apr 2026)USD 6.43M

NAV (LT)108.71

NAV (ST)106.29

Fund ManagerAkshay Falgunia

BenchmarkS&P 500 NTR Index

DealingDaily

CurrencyUSD

IFSCA Reg.IFSC/Retail/2025-26/005

Eligibility

Who can invest:

Resident Indians (via LRS) NRI OCI Eligible non-individuals

Check before investing:

US/Canada persons — verify FATCA

For NRIs: capital gains on IFSC fund units are fully exempt from Indian tax. No CGT filing required.

Parag Parikh IFSC
S&P 500 Fund of Fund

The Cheapest S&P 500 Access from India — and Why That Matters

S&P 500 FoF vs Nasdaq 100 FoF — Which One?

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The Cheapest S&P 500 Access from India — and Why That Matters

S&P 500 FoF vs Nasdaq 100 FoF — Which One?

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