Planning to invest in GIFT City? 7 myths and facts before global exposure
1/9
Planning to invest in GIFT City
There are several myths around investing in GIFT City, but the reality may be far simpler. Here are seven myths and facts investors should know before getting global exposure. (Source: PPFAS GIFT)
2/9
Need for a foreign/USD bank account
Many investors believe they need a foreign or USD bank account to invest in GIFT City. In reality, one can invest using an existing Indian bank account. No separate foreign account is required.
3/9
Complex foreign tax filing
Some investors assume that foreign investments require complex overseas tax filings. However, no foreign tax filing is required when investing through GIFT City.
Amazon Top Deals
POWERED BY
Crompton Ozone 75 Litres Desert Air Cooler for home | Large & Easy Clean Ice Chamber | 4-Way Air Deflection | High Density Honeycomb Pads | Everlast Pump | Auto Fill| 3 Year Brand Warranty
₹9,798Buy Now43%
OFF
LG 32 L Convection Microwave Oven (MC3286BRUM, Black, 360° Motorised Rotisserie for Bar-be-queing, 301 Auto Cook Menu, Stainless steel cavity, Indian Cuisine, Tandoor Se, Steam Clean & Diet Fry)
₹19,340Buy Now19%
OFF
4/9
RBI overseas limits
Many investors believe that RBI overseas limits restrict foreign investing. However, investing via the GIFT City IFSC route allows access to global markets without being constrained by domestic mutual fund overseas limits.
5/9
Only ultra-HNIs can invest
Another common myth is that only ultra-rich investors can invest through GIFT City. In fact, these funds are designed for retail participation. Resident Indians can invest via the LRS route with a starting ticket size of around USD 5,000.
6/9
Money will be locked in or redemption takes time
Some investors think their money will be locked in or that redemptions may take weeks. In reality, there is no lock-in period, and redemptions are typically processed within seven business days.
7/9
Hidden costs
There is also a perception that global investing comes with hidden costs. However, GIFT City retail funds combine global access with a transparent, mutual fund-style cost structure.
8/9
GIFT City is just another option
Some investors believe GIFT City is just another route among many options to invest abroad. In fact, GIFT City-based retail funds are a structurally optimized route—tax efficient, free from mutual fund caps, compliance-light, and institutionally designed for seamless global access.
9/9
More risky
Another myth is that investing outside India is inherently more risky. In reality, investing globally through GIFT City-based retail funds can help diversify portfolios and mitigate country-specific risks and economic cycles.