A side door to global equities

Summary: The RBI's $7 billion cap on overseas investment by Indian mutual funds was breached in 2022. Since then, the door to international funds has been mostly closed. A new route opened in 2025, but the minimum ticket, the tax structure and the two-NAV redemption system make it a different kind of decision than most investors expect.

Summary: The RBI's $7 billion cap on overseas investment by Indian mutual funds was breached in 2022. Since then, the door to international funds has been mostly closed. A new route opened in 2025, but the minimum ticket, the tax structure and the two-NAV redemption system make it a different kind of decision than most investors expect. Try starting an SIP in an international mutual fund today. Most schemes will refuse the order. The RBI’s industry-wide $7 billion-cap on overseas investment by Indian mutual funds was breached in early 2022. Since then, fresh inflows into international schemes have been shut, reopened briefly, and shut again. The workarounds are painful. Foreign brokerage accounts mean paperwork and complicated tax filings. Indian-listed international ETFs trade at chronic premiums. In 2025, a different door opened: GIFT City funds. There are now four of them for retail investors, offering a regulated route for resident Indians who want to invest abroad. This guide explains how they work, what they cost, and who they are right for. What GIFT City is and what it offers GIFT City investment products are not regulated by SEBI like ordinary domestic mutual funds. They are regulated by the International Financial Services Centres Authority, or IFSCA. The wider GIFT City fund universe includes several products, but most are not meant for ordinary Indian investors. Restricted schemes, portfolio management services, and special situation funds require a minimum ticket of $150,000 and are largely targeted at institutions and wealthy investors. Retail investors have access to only two categories: retail schemes and ETFs. The minimum investment is $5,000, or roughly Rs 4.8 lakh, which is still a sizable starting point.  GIFT City funds are also split by direction. Inbound funds invest in Indian assets and are open only to non-residents. Outbound funds invest abroad. The focus