What Are GIFT City Funds, and Who Are They For?

GIFT City: Gujarat International Finance Tec-City, is home to India's International Financial Services Centre (IFSC). Financial activity there is regulated by the International Financial Services Centres Authority (IFSCA), and a growing number of investment funds have been set up within it.

Funds based in GIFT City are typically denominated in a foreign currency such as US dollars. That makes them relevant to investors who earn, hold or plan in foreign currency, particularly NRIs building a global portfolio that stays anchored in India.

They are not a fit for everyone. Eligibility, minimum investment, tax treatment and fund structure all vary from fund to fund and depend on your residency. What suits one investor may be entirely unsuitable for another.

As with any solution, the right starting point is your plan: what you're investing for, in which currency you'll need the money, and how a GIFT City fund would fit alongside everything else you hold. Only then does the product question make sense.