GIFT City Investment Advisory for Residents and NRIs

Invest in US dollars, in global markets, without opening an account abroad. India’s GIFT City International Financial Services Centre (IFSC) lets resident Indians and NRIs hold dollar-denominated funds, AIFs, portfolios and deposits, regulated in India and reachable from your existing financial life here.

Fortune Wealth helps you decide whether GIFT City is the right route for your global money, choose what to hold there, and complete the paperwork end to end.


Speak to an Expert
Book Free Consultation

What GIFT City is, in one minute

GIFT City, near Gandhinagar in Gujarat, is India’s International Financial Services Centre. For foreign exchange purposes, it is treated as outside India: transactions happen in foreign currency (mostly US dollars), not rupees. One regulator, the International Financial Services Centres Authority (IFSCA), oversees banking, funds, capital markets and insurance within it.

For an investor, that means:

  • Dollar assets, Indian oversight. Your money stays in US dollars, while the regulator, the fund managers and the grievance process sit within India’s framework.
  • One route for residents and NRIs. Resident Indians invest through the Liberalised Remittance Scheme (LRS); NRIs invest directly.
  • Global exposure in familiar wrappers. Feeder funds into US and global indices, actively managed global equity, AIFs, portfolio management and foreign-currency deposits.
  • No idle-cash pressure. Resident investors can now keep LRS money in a foreign-currency account in GIFT City between investments, rather than having to send it back

Read more in our guides to GIFT City’s benefits and opportunities and how IFSCA regulates GIFT City.

GIFT City or direct LRS? We help you choose

Resident Indians have two ways to invest abroad, and neither is right for everyone.

GIFT City (IFSC) Direct LRS to an overseas broker
Currency US dollars US dollars (or other foreign currency)
Regulator IFSCA (India) Foreign regulator (e.g. US SEC)
Annual limit for residents Within the USD 250,000 LRS limit Within the same USD 250,000 LRS limit
Product range Curated: funds, AIFs, PMS, deposits, bonds Widest: individual US stocks, ETFs, bonds
Account abroad needed? No Yes
Who it suits Investors who want managed global exposure with Indian oversight Investors who want to pick individual foreign stocks themselves

Both routes count towards your LRS limit, and both attract TCS on remittances above the annual threshold, which you can claim back as a credit against your tax. Capital gains are generally taxed at the same rates whichever route you use. For residents who’d rather not use LRS at all, rupee mutual funds that invest abroad are a third option.

Our blog on GIFT City vs LRS covers the comparison in detail.

What we help you invest in through GIFT City

1. GIFT City mutual funds and feeder funds

Dollar-denominated funds from Indian and global fund houses: feeders into US index funds, global equity strategies and India-focused funds for NRIs who want to stay in dollars. Some schemes accept as little as USD 500.

2. Alternative Investment Funds (AIF) in GIFT City

Long-only, long-short, private credit and venture strategies set up in the IFSC, for investors with larger allocations. Minimum commitments are set by IFSCA and are much higher than for mutual funds. See our Alternate Investment Funds page for how we evaluate AIFs.

3. Portfolio management in GIFT City

Discretionary portfolios run by IFSC-registered managers, for investors who want a dedicated, dollar-based portfolio rather than a pooled fund. The approach mirrors our Portfolio Management Service for rupee portfolios.

4. Foreign currency deposits and bonds

Dollar fixed deposits with banks’ IFSC Banking Units (IBUs) and global bonds, for the stable, income-producing part of a dollar portfolio. NRIs comparing options can also read our FCNR account guide, and our Bonds and Fixed Deposits page covers rupee alternatives.

Who we help

Resident Indians investing globally.

Professionals and business owners who want part of their wealth in dollars, for diversification or a future goal abroad such as a child’s overseas education, and want it done within the LRS rules.

NRIs in the UAE, UK, US and elsewhere.

NRIs who earn in foreign currency and want to invest through India without converting to rupees and back. Fortune Wealth serves NRI clients from Mumbai and Dubai.

HNI families.

Families building a global allocation across funds, AIFs and portfolios who want one adviser who sees both their Indian and dollar holdings.

Returning NRIs.

People moving back to India who want to keep part of their savings in dollars in a structure they can manage from here.

How we work

  1. First conversation. Why you want global exposure, how much, for how long, and what you already hold abroad. No products are discussed.
  2. Route decision. GIFT City, direct LRS, rupee global funds, or a mix. We explain why, including the LRS limit, TCS and reporting implications.
  3. Portfolio plan. A written allocation across GIFT City funds, AIFs, portfolios and deposits that fits your existing Indian portfolio rather than duplicating it.
  4. Account opening and remittance. KYC, IFSC account setup and, for residents, the LRS remittance through your bank, with the documents prepared for you.
  5. Ongoing review and reporting. Periodic reviews in dollars and rupees, plus a holdings summary your CA can use for the foreign assets schedule of your tax return.

Who this suits, and who it does not

This suits investors who want a meaningful, long-term slice of their wealth in dollars, value Indian regulatory oversight, and prefer managed funds or portfolios over picking individual foreign stocks.

It does not suit someone who wants to trade individual US stocks actively, or who is putting in a small amount for a short period, where costs and paperwork outweigh the benefit. If direct LRS or a rupee global fund serves you better, we’ll tell you.

Why investors choose Fortune Wealth for GIFT City

  • 25+ years helping Mumbai families invest, now extended to their global portfolios.
  • One view of both portfolios. Your Indian and dollar holdings are planned together, so your global allocation isn’t an afterthought.
  • Authorised partner of Motilal Oswal Financial Services and an AMFI-registered mutual fund distributor (ARN 146822).
  • Mumbai and Dubai presence for resident and NRI clients, with meetings in person or over video.
  • Plain explanations of LRS, TCS and reporting, coordinated with your CA.

FAQ

Frequently Asked Questions

Still have questions?

Our advisors are available Monday to Saturday, 9am to 6pm IST.

Call Us Now

Yes. Resident individuals can invest in GIFT City through the Liberalised Remittance Scheme, within the overall limit of USD 250,000 per financial year.

Yes. NRIs, OCIs and foreign nationals can invest in GIFT City directly. LRS does not apply to NRIs, as it is meant only for resident individuals.

GIFT City is regulated by IFSCA, a statutory authority set up by the Government of India, with disclosure rules for fund managers and a grievance process. Market risk still applies: a global equity fund can fall in value like any other equity investment.

For residents, remittances under LRS attract TCS above the annual threshold, whether the money goes to GIFT City or abroad. TCS is not an additional tax; it can be adjusted against your income-tax liability or claimed as a refund.

It depends on the product. Some GIFT City mutual funds accept USD 500, while AIFs and portfolio management services have much higher minimums set by IFSCA.

Resident investors generally need to disclose GIFT City holdings as foreign assets in their tax return, as with other overseas investments. Your CA files the return, and we provide the holdings and income statements for it.

Resident investors can now hold LRS funds in a foreign-currency account in GIFT City between investments, rather than having to repatriate unused money.

Neither is better for everyone. GIFT City suits investors who want managed global exposure with Indian oversight; direct LRS suits those who want the widest choice, such as individual US stocks. We help you decide.

Depending on the product, through commission paid by the fund house or platform, or through the charges of the structure used. We disclose how we are paid on each product before you invest.

Related reading

Start your global allocation

Tell us roughly how much you want in dollars, for how long, and what you already hold abroad. We’ll explain whether GIFT City is the right route before anything else.

need consultation? let’s talk.