How to Invest in GIFT City Funds: The Route

How do you invest in a GIFT City fund?

The short answer

Choose the route first. An NRI subscribes in US dollars from an overseas bank account, with no Indian bank account required. A resident Indian remits through an authorised bank under the liberalised remittance scheme. Both then complete the fund's own KYC. The fund, not you, handles most of the Indian tax.

For NRIs on the inbound route and residents on the outbound route

By Yash Jhaveri, Founder & CEO, Beyond

Beyond · JSL Wealth Management · Vadodara · ARN XXXXX
Published September 2026 · Last reviewed September 2026 · Regulatory position as at September 2026

If you are an NRI or a foreign investor

You are using the inbound route: overseas money into Indian strategies.

No NRE or NRO account. You subscribe in US dollars from the bank account you already hold abroad.
The fund's KYC. Passport, proof of overseas address, proof of residence status, and a tax identification number from your country. US persons are asked for US tax documentation.
Subscription. A wire in US dollars to the fund's account at GIFT City. Restricted schemes start at US $150,000.
Redemption. Proceeds return in US dollars to the same overseas account. Capital and gains move without the usual repatriation steps.

If you are resident in India

You are using the outbound route: rupees into global funds through GIFT City.

Remit under LRS. Through an authorised dealer bank, within US $250,000 a person a year.
Tax collected at source. The bank collects tax on remittances above ₹10 lakh a year. It is adjustable against your income tax, not a cost.
KYC with the fund. PAN, Indian address proof, and the LRS declaration.
Report it. Foreign assets, including GIFT City fund units, go on Schedule FA of your return every year you hold them.

Who is on the other side?

A GIFT City fund is run by a fund management entity registered with the IFSCA. The onboarding, the KYC and the tax at fund level are its job. What differs between funds is the paperwork and the timeline, not the regulator.

What to have ready before you start

Three things decide whether onboarding takes a week or a quarter.

Which country you are tax-resident in, with evidence. It decides what the fund will ask for and whether it will accept you at all.
Whether you are a US person. Say so at the first conversation, not the last.
The private placement memorandum, read before you sign. The minimum, the lock-in and the redemption terms are in there, not on the factsheet.

What we do not know until we see the fund

Timelines, document lists and cut-off dates are set by each fund management entity and change. We confirm them against the PPM at onboarding rather than print them here. Confirm the position for your own facts with a chartered accountant in India and, if you are taxed abroad, with a professional in that country. GIFT City rules are fund-specific and residence-specific.

Common questions

Do I need an NRE or NRO account to invest in GIFT City?

No. An NRI subscribes in US dollars from an overseas bank account and receives redemptions to the same account.

How does a resident Indian invest in a GIFT City fund?

By remitting through an authorised dealer bank under the liberalised remittance scheme, within US $250,000 a year, then completing the fund's KYC.

Is tax collected on an LRS remittance?

Yes, on remittances above ₹10 lakh a year. It is collected by the bank and adjustable against your income tax.

Education, not advice. We may earn referral fees when you invest through us. Full disclosures