Types of GIFT City Funds: How They Are Structured

Not all GIFT City funds work the same way. Before comparing anything, it helps to understand the four broad structures you'll come across — and the two directions money can flow between India and the rest of the world.

The four structures, compared

Structure	What it is	Typical entry ticket	Typically used by
Mutual Fund FoF	A feeder fund that channels your money into an underlying scheme	From ~USD 500 for some funds	Investors wanting fund-of-fund simplicity at a lower ticket size
AIF (Alternative Investment Fund)	A pooled vehicle for less standardised strategies (equity, credit, structured products)	From ~$150,000 (some lower exceptions exist)	Investors comfortable with higher tickets and less liquid strategies
PMS (Portfolio Management Services)	A professionally managed, individually held portfolio	From ~$75,000	Investors wanting a more customised, discretionary approach
Retail Feeder Fund	A lower-ticket fund designed for individual retail access	From ~USD 500 for some funds	Investors wanting simple exposure without a large minimum

Each structure in depth: GIFT City AIF · GIFT City PMS · feeder funds · all minimum investment amounts.

Retail tier vs high-ticket tier

Retail tier

Small to moderate amounts, for individual investors

From about USD 1US stocks and ETFs via an IFSC brokerDo-it-yourself investors; residents under LRS, eligible NRIs
Set by each bankUSD deposits at IFSC Banking UnitsSavers wanting dollar deposits
From USD 500 to a few thousandRetail funds and feeder fundsMost individual NRIs, OCIs and residents

High-ticket tier

USD 75,000 and above, for HNIs, families and institutions

Indicative minimums as of October 2026; each scheme, broker or bank sets its own figure and eligibility. Residents invest within the LRS limit of USD 250,000 a year. See all minimums and limits.

Ticket sizes are indicative and vary by Fund Management Entity — always confirm current minimums directly before assuming a structure is out of reach.

Inbound vs Outbound: which way is the money moving?

INBOUND

Money from outside India (NRIs, OCIs, foreign institutions) flowing into India — via the Foreign Portfolio Investment (FPI) or Foreign Direct Investment (FDI) routes — usually to access Indian equities, Indian mutual funds, or India-focused strategies.

OUTBOUND

Money from India (via the Liberalised Remittance Scheme, LRS) or global sources flowing out into international markets — global equities, ETFs, bonds, alternative strategies, or structured products, via the Overseas Portfolio Investment (OPI) route.

IFSCA's legal categories: retail, restricted and venture capital schemes

Behind the product names above, every GIFT City fund is registered under the IFSCA (Fund Management) Regulations, 2025 as one of a few scheme types. The type decides who may invest and the minimum ticket, and each is run by a matching category of Fund Management Entity (FME).

Scheme type	Run by	Who can invest	Minimum per investor
Retail scheme (mutual funds, ETFs)	Registered FME (Retail)	Anyone eligible, including individual retail investors	Set by each scheme, from USD 500 for some funds
Restricted scheme (AIF Category I, II, III)	Registered FME (Non-Retail)	Accredited investors, or investors meeting the minimum	Commonly USD 150,000
Venture capital scheme	Authorised FME	By private placement, up to 50 investors; close-ended, at least 3 years	As set by the scheme
Portfolio management (PMS)	Registered FME	Individual portfolios, not a pooled scheme	USD 75,000 (reduced from USD 150,000 in 2025)

In practice: if you are an individual investing less than USD 75,000, you are looking at retail schemes. Restricted schemes and PMS are built for larger tickets. Sources: DSP GIFT City knowledge hub, Business Standard on IFSCA's 2025 changes.

A quick word on tax

Tax treatment differs meaningfully by structure, by direction, and by where you live — especially if you're a US-based NRI. We've broken that down separately. See the Taxation page · See the US-Based NRI guide

Alternative investment funds in GIFT City vs SEBI Category I, II and III

In India, SEBI classifies AIFs as Category I (for example venture capital), Category II (for example private equity and private credit) and Category III (for example hedge-fund-style strategies). IFSCA does not use these categories. In GIFT City, an alternative investment fund is set up as a venture capital scheme or a restricted scheme, and the scheme type decides who may invest and the minimum.

GIFT City investment minimum amount, at a glance

Product	Typical minimum
Retail scheme / feeder fund	Set by the scheme, often a few thousand USD
Restricted scheme (AIF)	Commonly USD 150,000
Venture capital scheme	High; for accredited or high-ticket investors
Portfolio management services	USD 75,000
US stocks and ETFs via an IFSC broker	Can be very small
USD fixed deposit at an IFSC Banking Unit	Set by each bank

Common questions

What are GIFT City VC funds?

GIFT City venture capital funds are venture capital schemes registered with IFSCA. They invest in start-ups and early-stage companies in India and abroad and are open only to accredited or high-ticket investors.

What is an alternative investment fund in GIFT City?

An alternative investment fund in GIFT City is a pooled fund for strategies outside conventional mutual funds, set up as a restricted scheme or venture capital scheme under IFSCA's fund management regulations.

What retail investment options are there in GIFT City?

Retail investors can use retail schemes and feeder funds, USD deposits at IFSC Banking Units, and US stocks and ETFs through IFSC brokers. Restricted schemes, venture capital schemes and PMS have high minimums.

What is the minimum investment in a GIFT City AIF?

Most GIFT City AIFs are restricted schemes, where the minimum is commonly USD 150,000 per investor; accredited investors may be exempt. Check the scheme's offer document for the current figure.

What is the minimum investment for GIFT City PMS?

Portfolio management services in GIFT IFSC have a minimum of USD 75,000, reduced from USD 150,000 under the 2025 regulations.

What is a GIFT City retail scheme?

A retail scheme is a GIFT City fund open to the general public, including NRIs and resident Indians. Only a Fund Management Entity registered for retail schemes can run one, and the scheme sets its own minimum, often a few thousand US Dollars.

What is a GIFT City restricted scheme?

A restricted scheme is open only to accredited or high-ticket investors, commonly with a USD 150,000 minimum. Most GIFT City AIFs are restricted schemes.

What is a GIFT City feeder fund?

A feeder fund puts most of its money into one other fund, such as an overseas fund or an Indian mutual fund scheme. It lets investors reach that fund in US Dollars through GIFT IFSC; its costs include the underlying fund's costs.

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Official sources

Rules change. Check the current position with the authority that sets it.

IFSCA — International Financial Services Centres Authority — The regulator for all financial services in GIFT IFSC.
IFSCA Directory of regulated entities — Check that a Fund Management Entity is registered.
RBI — FAQs on the Liberalised Remittance Scheme — The annual limit and permitted purposes for resident Indians.