PPFAS launches 2 new passive GIFT City-based outbound funds

PPFAS Alternate Asset Managers IFSC Private (PPFAS GIFT) today announced the launch of two new outbound passive retail funds: Parag Parikh IFSC S&P 500 Fund of Fund and Parag Parikh IFSC Nasdaq 100 Fund of Fund from GIFT City, IFSC.

The new fund offer or NFO for both the schemes is open for subscription and will close on March 16.

These funds open a new way for Indian investors to participate in major U.S. stock markets without the need to open foreign brokerage accounts. They are structured to primarily invest in ETFs and UCITS that track the S&P 500 and Nasdaq 100 indices, respectively, thereby bringing broad exposure to large-cap U.S. stocks and leading technology companies to investors through a simple and compliant route.


Parag Parikh IFSC S&P 500 Fund of Fund seeks to track the performance of the S&P 500 Index, which comprises approximately 500 of the largest publicly traded companies in the United States.

Parag Parikh IFSC Nasdaq 100 Fund of Fund seeks to provide exposure to the Nasdaq 100 Index, which includes 100 of the largest non-financial companies listed on the Nasdaq Stock Market, with major representation from technology and other innovation-driven sectors.

Parag Parikh IFSC S&P 500 Fund of Fund will be benchmarked against the S&P 500 Index and Parag Parikh IFSC Nasdaq 100 Fund of Fund from GIFT City, IFSC will be benchmarked against the Nasdaq 100 Index.

The base currency will be USD and the purchase NAV will be long-term post-tax NAV. The redemption NAV will be: for a holding period of less than two years, long-term post-tax NAV, and for more than two years, short-term post-tax NAV.

Both of these funds are designed to be accessible with a low minimum investment of USD 5,000, allowing investors to participate in global equity markets without a large outlay, with a top-up of USD 500 per instance.

These funds also feature a low Total Expense Ratio (TER), ensuring that a greater portion of investors’ capital is allocated towards the underlying investments rather than fund management costs.

They are aimed at resident Indian individuals and other eligible investors, e.g. companies, LLPs, partnership firms, who want international diversification through an easy-to-access product with clear tax and regulatory frameworks.

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“Today marks an exciting chapter in our journey. These new outbound retail funds reflect our belief that great investment opportunities should not be limited by geography. At PPFAS, we want to make global markets more accessible to our clients in a way that is transparent, simple to understand, and grounded in strong governance. Through these retail funds from GIFT City, we are expanding access to global equity markets for Indian investors through a structured, dollar-denominated and regulated platform,” said Nirmal Bari, Director and Principal Officer.

The benefits of investing via GIFT are that investors gain exposure to major U.S. markets without managing foreign accounts or funds directly. The funds aim to optimise foreign exchange and transaction costs while handling tax and reporting at the fund level. Since these PPFAS GIFT funds are passive, the expense ratio is lower (0.30% for direct and 0.60% for regular).

Lastly, the products are launched under the regulatory framework of the International Financial Services Centres Authority (IFSCA), offering clarity and oversight.

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