How to Invest in GIFT City Funds: Step-by-Step Guide for NRIs and Residents
By Anup Vatyani, AMFI-registered Mutual Fund Distributor (ARN 106715)
Last reviewed October 2026
The short answer. Choose the fund structure, confirm how your money will travel (LRS for resident Indians, direct foreign currency for NRIs), complete KYC with the fund house, then remit US Dollars to the scheme and receive units. The whole process usually takes one to three weeks.
- 1
Understand the structures
- 2
Confirm your route and eligibility
- 3
Prepare your KYC documents
- 4
Ask your questions before you sign
- 5
Subscribe, remit and receive your units
Two routes: residents and NRIs
Resident Indian
Indian bank account → LRS (USD 250,000 a year) → TCS 20% above ₹10 lakh
NRI / OCI
Overseas bank account → USD transfer, no LRS, no TCS
Scheme's USD account in GIFT IFSC
Run by an IFSCA-registered FME
Units allotted at NAV
Statement and investor portal access
The GIFT City investment process, step by step
- 1
Understand the structures
GIFT City funds are a family of structures: retail schemes (including feeder funds), restricted schemes such as AIFs, and portfolio management services. Each has its own minimum, investor eligibility and exit terms. Choosing the structure first matters, because switching later usually means starting onboarding again.
Types of GIFT City funds - 2
Confirm your route and eligibility
Your residential status decides how money reaches the fund. Resident Indians remit from an Indian bank account under the Liberalised Remittance Scheme (LRS), with TCS above ₹10 lakh a year. NRIs and OCIs usually send foreign currency straight from an overseas account, with no LRS and no TCS. US persons should check PFIC status before anything else.
Check your route in 30 seconds - 3
Prepare your KYC documents
Fund Management Entities run their own KYC; an Indian mutual fund KYC is not automatically accepted. Keep the documents in the checklist below ready as clear scans. Overseas documents may need to be self-attested or notarised, depending on the fund house.
- 4
Ask your questions before you sign
Read the offer document and ask about anything unclear: costs, exit load, lock-in, how redemptions are paid and how the fund is taxed where you live. Anup Vatyani, an AMFI-registered Mutual Fund Distributor (ARN 106715), can explain the process and connect you with a Fund Management Entity. He does not give personalised investment advice.
Talk to Anup - 5
Subscribe, remit and receive your units
Sign the subscription form, complete KYC with the fund house and send the money to the scheme's USD account in GIFT IFSC. Units are allotted at the NAV that applies when the money is received, and you track the holding through the fund house's investor portal and statements.
Document checklist
| Document | Resident Indian | NRI | OCI / foreign citizen |
|---|---|---|---|
| Passport | Usually | Yes | Yes (foreign passport) |
| PAN card | Yes | Some funds; others accept a declaration | Some funds; others accept a declaration |
| OCI card | — | — | Yes |
| Proof of address | Indian address | Overseas address | Overseas address |
| Bank statement / cancelled cheque | Indian account | Account the money comes from | Account the money comes from |
| Tax Residency Certificate | — | Often, to claim treaty rates | Often |
| FATCA / CRS self-certification | Yes | Yes | Yes |
| Form A2 and LRS declaration | Yes, at your bank | — | — |
| W-9 or W-8BEN | — | If US-linked | If US-linked |
Typical requirements; each fund house sets its own list.
What happens to your money, and when
Days 1–5
KYC submitted and verified by the fund house
Days 5–8
Remittance sent; arrives in one to three working days
Days 8–14
Units allotted; confirmation and portal access
Mistakes to avoid
- Investing from the wrong account. NRIs should not invest from a resident savings account; convert it to NRO first.
- Forgetting other LRS remittances. School fees, travel and gifts count towards the same ₹10 lakh TCS threshold. Use the TCS calculator.
- Ignoring PFIC as a US person. Read PFIC explained first.
- Skipping the exit terms. Lock-ins and exit loads differ widely between structures.
- Not reporting it. Residents must show the holding in Schedule FA of their return every year.
Next
Browse the GIFT City fund list, read the risks, or see who can invest.
Common questions
How long does it take to invest in a GIFT City fund?
Usually one to three weeks from first contact with the fund house: a few days for KYC, one to three working days for the remittance to arrive, and allotment at the next applicable NAV. Delays most often come from missing or unattested documents.
Can I invest in GIFT City funds online?
Many fund houses now offer digital onboarding with e-signatures, though some still ask for physical or notarised documents, especially for overseas investors. The remittance itself is made through your bank.
Do I need a GIFT City bank account to invest?
No. You can invest in most GIFT City funds directly from an Indian bank account (residents, under LRS) or an overseas account (NRIs). A GIFT City bank account (IBU) is optional and can be useful for holding dollars.
Do NRIs need a PAN to invest in a GIFT City fund?
Not always. Some GIFT City funds do not require a PAN from non-residents whose only Indian income is from IFSC funds; others ask for one, or a declaration. Check the fund's KYC list before you start.
How does GIFT City fund redemption work?
You submit a redemption request to the fund house. Proceeds are paid in the fund's currency, usually USD, to your registered bank account. Resident Indians must bring the money back to India or reinvest it within the time allowed by RBI rules.
Official sources
Rules change. Check the current position with the authority that sets it.
- 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.
- Income Tax Department, Government of India — The Income-tax Act, including Section 10(4D), and TCS rules.
- IRS — About Form 8621 (PFIC reporting) — US reporting for shareholders of passive foreign investment companies.
Have a question about how this works?
Anup Vatyani explains GIFT City fund structures and the investment process in plain English. Educational conversation only, not personalised advice.
Talk to AnupThis page is educational and is not investment, tax or legal advice. Figures and rules are as understood at the date shown and can change; check the official sources and the scheme's offer documents. Investments are subject to market risks; read all scheme-related documents carefully.