What is GIFT City?
GIFT City (Gujarat International Finance Tec-City) is India’s first and only International Financial Services Centre (IFSC)—a visionary initiative by the Government of India to bring global financial services to Indian soil with world-class infrastructure, simplified regulations, and competitive tax structures.
Located in Gandhinagar, Gujarat, GIFT City has been developed to cater to businesses in banking, insurance, capital markets, asset management, and allied financial services—all in foreign currency and under one unified regulatory framework.
Why GIFT City Solutions for NRIs?
Investment Options Through GIFT City
1. Mutual Fund-Based Investments
Invest in direct plans for reputed Indian mutual funds via a GIFT City AIF.
Key Benefits:
- No tax on income or gains in India (exempt under Section 10(4D) of Income Tax Act).
- No PAN, ITR filing, or Indian compliance needed.
- Simple onboarding with direct funding from your foreign bank.
- Minimum investment: USD 150,000
📈 Process of Mutual Fund-Based Investments:
For NRIs and foreign investors looking to invest in Indian Mutual Funds via GIFT City, the structure ensures simplicity, compliance, and tax efficiency. Here’s how it works:
🔹 Step-by-Step Flow
- Global Investors (Offshore)
Includes NRIs, foreign nationals, and overseas corporates who wish to invest in India without managing complex local accounts or tax obligations. - Contribution to Category III AIF (GIFT IFSC)
Funds are contributed to a professionally managed Alternative Investment Fund registered in GIFT City IFSC, structured under IFSCA regulations. - Fund Management Entity (GIFT IFSC)
Managed by SEBI/IFSCA-registered fund managers who ensure asset allocation, compliance, and governance. - Investments into Indian Mutual Fund Units
The AIF invests in Direct Plans of Indian Mutual Funds, offering diversification, transparency, and tax-exempt income. - Distributions Flow Back to Investors
Any gains or distributions are returned to the investors directly in foreign currency, typically without any tax implications in India.
2. Derivatives-Based Investments
Gain exposure to Indian listed equities or derivatives via GIFT-based AIFs.
Tax Structure:
- Derivatives: Fully tax-exempt in India.
Key Benefits:
- No requirement of Indian bank/demat account.
- No Indian tax compliances.
- Performance-linked structures with direct USD inflows.
📈 Process of Derivatives-Based Investments:
- Global Investors (Offshore)
Eligible investors including NRIs, foreign nationals, and international corporates initiate investment from outside India. - Contribution to Category III AIF (GIFT IFSC)
Investments are made into a Category III Alternative Investment Fund (AIF) registered and regulated under IFSCA, located in GIFT City. - Fund Management Entity (IFSC)
A professional asset management team operates the fund under SEBI and IFSCA norms, designing equity or derivative strategies to optimize returns. - Deployment into Indian Markets
The AIF invests directly into: Derivatives, including futures and options - Distributions Flow Back to Investors
Any profits, returns, or capital withdrawals are distributed back to investors in foreign currency, typically without the need for Indian tax filings or demat infrastructure.
Why Ashutosh Financial Services?
At Ashutosh Finserv, we combine deep financial expertise with a commitment to building long-term, trusted relationships. We go beyond standard advisory our approach is to manage, simplify, and optimize your entire financial needs.
• 65+ years of legacy with over two decades of focused expertise in wealth and investment advisory
• Trusted by 5000+ clients across India and 25+ countries, with relationships built and nurtured across generations as a holistic family office.
• Dedicated relationship managers and a team of 65+ seasoned professionals, ensuring personalized and consistent service
• Periodic portfolio reviews and end-to-end financial management tailored to your evolving needs
• Deep understanding of Indian and global financial ecosystems
Our Key USPs are as under
