If you want to invest in global financial products without opening an overseas investment account, GIFT City offers a unique opportunity.
GIFT City, or Gujarat International Finance Tec-City, is India’s first International Financial Services Centre (IFSC).
It is a special financial hub in Gandhinagar where investors can access a range of international investment products in foreign currencies, primarily US dollars, while remaining within India’s regulatory framework.
Everything operating within GIFT City is regulated by the International Financial Services Centres Authority (IFSCA). For first-time investors, one of its biggest advantages is the ability to build global, dollar-denominated investments through an Indian financial ecosystem, without following the traditional overseas investment route.
Can you actually invest in GIFT City? Who is eligible?
One of the first questions most people ask is whether they are even eligible to invest in GIFT City. The answer depends on your residential status and how you fund your investments.
Investor type | Can you invest? | Key condition |
Resident Indian | Yes | Invest through the RBI’s Liberalised Remittance Scheme (LRS) in foreign currency |
NRI | Yes | Fund investments directly from an overseas account; LRS does not apply |
OCI | Yes | Treated similarly to an NRI for GIFT City investments |
HUF | Depends | Investment is generally made through the Karta, subject to the platform’s policy |
Resident Indians
Yes, resident Indians can invest in GIFT City.
Investments are made under the Reserve Bank of India’s Liberalised Remittance Scheme (LRS), which currently allows resident individuals to remit up to USD 250,000 abroad in a financial year. Since GIFT City investments are made in foreign currency, they are treated as remittances under the LRS framework.
If you have already used LRS for purposes such as overseas travel, education or international investing, the process will feel familiar.
NRIs and OCIs
NRIs and Overseas Citizens of India (OCIs) can also invest in GIFT City, and for many, it is even more convenient.
Since investments are funded directly from an overseas bank account, the LRS limit does not apply. If you earn and hold your savings in foreign currency, you can invest without repeatedly converting money between rupees and foreign currencies.
If you are an NRI and want to understand the investment process, taxation and available opportunities in greater detail, our detailed guide on investments in GIFT City for NRIs gives you a comprehensive understanding.
HUF (Hindu Undivided Family)
HUFs can also invest in certain situations, although the process is not as straightforward.
When the RBI expanded the GIFT City framework in July 2024, it permitted resident individuals and HUFs to open foreign currency accounts under the LRS framework. In practice, an HUF invests through its Karta.
However, whether an IFSC bank or investment platform accepts HUF accounts depends on its own operational policies. Before proceeding, it is best to confirm directly with the bank or platform rather than assuming eligibility.
What can you invest in through GIFT City?
Before we look at the investment process, it helps to understand what investment options are available. GIFT City offers access to a wide range of global financial products through banks, brokers and investment platforms registered with the IFSC.
Our guide on GIFT City investment services would provide you a detailed overview of the available options.
Mutual Funds and Offshore Funds
For most first-time investors, mutual funds are the easiest place to begin.
These US dollar-denominated funds invest in global markets and may track well-known international indices or invest across countries and sectors. Some are feeder funds that invest in established overseas mutual funds.
The investment experience is similar to investing in Indian mutual funds. The main difference is that these funds are denominated in US dollars and regulated by the IFSCA instead of SEBI. Depending on the fund, the minimum investment may range from a few hundred to a few thousand US dollars.
International Stocks
If your goal is to invest in global companies such as Apple, Microsoft or Tesla, GIFT City provides a convenient route.
The NSE International Exchange (NSE IX) offers investment opportunities through Unsponsored Depository Receipts (UDRs), allowing investors to gain exposure to selected US-listed companies without opening a brokerage account overseas.
The list of available companies continues to grow, so it is worth checking the latest offerings with your investment platform before investing.
Bonds and Foreign Currency Deposits
If you prefer relatively stable investment options, GIFT City also offers foreign currency bonds and fixed deposits.
Several IFSC banking units provide term deposits in currencies such as US dollars, Euro, Pound Sterling and Australian dollars. For eligible non-resident investors, the interest earned on these deposits is generally exempt from Indian income tax.
Alternative Investment Funds (AIFs) and Portfolio Management Services (PMS)
GIFT City also offers Alternative Investment Funds (AIFs) and Portfolio Management Services (PMS) for investors seeking more specialised strategies.
However, these products usually require a significantly higher investment, often starting at around USD 75,000, and may involve longer lock-in periods. For this reason, they are generally better suited to experienced or high-net-worth investors than someone investing in GIFT City for the first time.
Unit Linked Insurance Plans (ULIPs)
GIFT City also offers US dollar-denominated Unit Linked Insurance Plans (ULIPs) through insurers operating within the IFSC.
These plans combine life insurance with investment, allowing you to invest in market-linked funds while providing financial protection for your family. Depending on the insurer, you may be able to choose from equity, debt or balanced investment options based on your financial goals and risk appetite.
If you are looking to build long-term wealth while maintaining life insurance cover, ULIPs can be an attractive option. However, the suitability of a ULIP depends on factors such as your investment horizon, insurance needs, and flexibility. It is important to evaluate these aspects carefully before investing rather than choosing a ULIP solely for its tax or investment benefits.
How to invest in GIFT City: the step-by-step process
Investing in GIFT City is simpler than you expect. Most of the process can be completed online.
Step 1: Complete the KYC formalities
You will need to complete the standard Know Your Customer (KYC) process by submitting documents such as a passport. Depending on your residential status, additional documents may be required. Many institutions now offer fully digital or video KYC, making the process convenient.
Step 2: Transfer the funds
Once your account is ready, you can transfer money in foreign currency. Resident Indians fund their investments under the RBI’s Liberalised Remittance Scheme (LRS), while NRIs and OCIs can transfer funds directly from their overseas bank accounts.
Step 3: Choose your investment
After your account is funded, you can select the investment that best matches your financial goals and risk appetite. Whether you prefer global mutual funds, international stocks, foreign currency deposits, bonds or other investment options, choose products that fit your investment needs.
Step 4: Monitor your portfolio
After investing, review your portfolio periodically to ensure it continues to align with your financial goals. Like any investment, GIFT City investments should be monitored regularly and rebalanced whenever your objectives or market conditions change.
How to invest in GIFT City from Australia, or any country abroad?
If you are an NRI or OCI living overseas, you can invest in GIFT City regardless of where you are based. Whether you live in Australia, the United States, the United Kingdom, the UAE or another country, the investment process remains largely the same.
For example, if you are an Indian professional working in Sydney, you can open a GIFT City investment account remotely, complete your KYC online and transfer funds directly from your Australian bank account. Since NRIs and OCIs invest using overseas funds, the RBI’s Liberalised Remittance Scheme (LRS) does not apply to them.
The same approach works for investors across different countries, making GIFT City a convenient way to access global investment opportunities without the need to open a traditional overseas brokerage account.
What does it cost to start? Minimum Investment
One of the common misconceptions about GIFT City is that it is only for wealthy investors. While some products require substantial investments, many are accessible with relatively modest amounts.
Investment Option | Typical Minimum Investment | Suitable for Beginners? |
Global mutual funds and feeder funds | Around USD 500–5,000 | Yes |
International stocks | Depends on the price of the security | Yes |
Foreign currency bonds and deposits | Usually a few thousand USD | Yes |
Alternative Investment Funds (AIFs) and PMS | Around USD 75,000 or more | No |
Resident Indians should also keep the Liberalised Remittance Scheme (LRS) limits in mind. At present, remittances for overseas investments above ₹10 lakh in a financial year attract Tax Collected at Source (TCS).
However, this is not an additional tax. It can generally be adjusted against your final tax liability or claimed as a refund while filing your income tax return.
Tax benefits of investing in GIFT City
Tax benefits are often highlighted when discussing GIFT City, but it is important to understand that they vary depending on the investor and the investment product.
Transactions on recognised GIFT City exchanges are generally exempt from Securities Transaction Tax (STT), Commodity Transaction Tax (CTT) and stamp duty.
Certain tax incentives are also available for eligible non-resident investors, including exemptions on specific capital gains and tax-free interest on qualifying foreign currency deposits.
For resident Indians, however, the primary advantage of GIFT City is access to global investment opportunities through an Indian financial ecosystem rather than tax savings. The taxation of returns depends on the nature of the investment and your residential status.
Before investing, I suggest you understand the tax implications of your chosen product by seeking professional advice.
Risks and things to consider before investing
Like any investment, GIFT City investments also carry risks. Understanding them beforehand can help you make better investment decisions.
Currency risk – If your income and financial goals are in Indian rupees, investing in US dollar-denominated assets means your returns will also be influenced by exchange rate movements.
Liquidity risk – Some investment products may have lower trading volumes or lock-in periods, making it difficult to exit immediately when required.
Investment risk – Different products carry different levels of risk. While global mutual funds and deposits may suit many investors, Alternative Investment Funds (AIFs) and other specialised products are generally designed for experienced investors with a higher risk appetite.
These risks should not discourage you from investing. Instead, they highlight the importance of selecting investments that match your financial goals, investment horizon and ability to take risk, rather than choosing products simply because they are available through GIFT City.
How can Zenith Finserve help you?
Anuj says: Many people ask me how they can invest in GIFT City. I believe the more important question is whether they should. Global investing can be a valuable addition to a portfolio, but only when it fits your financial goals, risk appetite, existing investments and tax situation. The right strategy is always more important than simply accessing another investment platform.
At Zenith Finserve, we believe GIFT City is a means to an investment objective, not an objective in itself. Before suggesting any investment, we first understand your financial goals and whether global exposure genuinely adds value to your overall portfolio.
- We assess whether investing through GIFT City is suitable for you based on your residential status, financial goals, investment horizon and existing asset allocation.
- We help you identify the most appropriate investment option. It could be mutual funds, AIF, ULIPs, PMS or other products.
- As fiduciary financial planners, we integrate GIFT City investments into your overall financial plan, taking into account taxation, currency exposure, diversification and long-term wealth creation rather than focusing on individual products alone.
Conclusion
Three things to take away. GIFT City is a legitimate, regulated way to invest globally in dollars from within India, and residents, NRIs and OCIs can all use it, with HUFs the case-by-case exception. The process is straightforward: finish the KYC, and start investing. The real question is whether it is right for you, and if yes then where and how much should you invest.
If you are considering investing in GIFT City, a no-pressure conversation with a CFP before you start investment could be a more sensible investment.
FAQs
Can Indian residents invest in GIFT City, and is there a limit?
Yes. Residents invest through the RBI’s Liberalised Remittance Scheme, which caps foreign remittances at USD 250,000 per financial year. A GIFT City investment uses part of that same annual limit.
Can OCIs invest in GIFT City the same way NRIs do?
Yes. For this purpose OCIs are treated like NRIs. You can invest from your overseas account.
Can an HUF invest in GIFT City?
It depends. The RBI framework that lets residents open foreign currency accounts at GIFT City covers HUFs as well as individuals, but in practice an HUF invests through its Karta and onboarding is decided case by case.
How do I invest in GIFT City mutual funds as a beginner?
Finish KYC, fund it in foreign currency, then start investing.
How can I invest in GIFT City from Australia or another country abroad?
Complete the KYC remotely over video, then fund it from your overseas bank in a permitted currency such as AUD. The same steps apply from the US, UK, UAE and elsewhere.
What is the minimum amount I need to start investing in GIFT City?
It varies by product and provider. Mutual funds often start around USD 5,000, while PMS begin at USD 75,000, and AIFs with USD 1,50,000.
Can I invest in US stocks through GIFT City?
Yes. Through Unsponsored Depository Receipts on the NSE International Exchange you can get dollar exposure to major US shares without opening a US brokerage account. Check the current list of names with your broker.
