GIFT City – AF Fin Distributors

GIFT City

GIFT City (Gujarat International Finance Tec-City, or GIFT IFSC) is India’s first International Financial Services Centre, regulated by the International Financial Services Centres Authority (IFSCA). It serves as a hub for financial products, including funds domiciled in GIFT City that offer access to both Indian and global markets, often in USD or other foreign currencies.

Mutual Fund-Like Products Sold by Distributors in GIFT City

Mutual Fund Distributors (MFDs, typically AMFI-registered with an ARN code) can sell or distribute certain GIFT City products. These include:

Retail mutual fund schemes (or equivalent pooling vehicles) launched by Asset Management Companies (AMCs) with IFSC branches or Fund Management Entities (FMEs) registered with IFSCA.
Alternative Investment Funds (AIFs) — Many function similarly to specialized mutual funds but with higher minimums and different risk profiles (e.g., Category III AIFs). Over 200 AIFs operate in GIFT City.
Portfolio Management Services (PMS) — Discretionary or advisory mandates.
Feeder Funds / Fund of Funds — These channel investments into domestic Indian schemes or global assets.
Other capital market products like structured products, debt/equity instruments, or ETFs traded on IFSC exchanges (e.g., India INX).

Indian MFDs do not always need a physical office in GIFT City. They can:

Tie up directly with IFSCA-registered AMCs/FMEs to distribute their schemes.
Comply with IFSCA's Code of Conduct for distributors (under Capital Market Intermediaries Regulations).
In some cases, register as a distributor with IFSCA (requires net worth, fees, and compliance, more common for larger entities).

Many AMFI-registered MFDs collaborate with PMS/AIF providers or insurance companies in GIFT City to offer these to clients.

Main Types of GIFT City Funds (Relevant to Mutual Fund Distribution)

Funds are broadly classified by investment flow:

Inbound Funds: Collect capital from NRIs/OCIs/foreign investors and invest primarily in Indian equities, debt, or domestic mutual funds/ETFs. Targeted at non-residents.
Outbound Funds: Collect capital from resident Indians (often via Liberalised Remittance Scheme - LRS) or NRIs and invest in global markets (e.g., US equities, international indices).
Feeder/Retail Schemes: Act like mutual funds, with lower minimums (e.g., USD 500–5,000 for some retail products). These can be actively managed or passive (index-tracking).

Key Features:

Denominated in foreign currency (mainly USD).
Offer diversification beyond domestic markets.
Tax incentives in the IFSC zone (subject to specific rules; consult a tax advisor).
Regulated by IFSCA with international-standard disclosures.
Risk levels vary: equity/global funds are high risk; some are hybrid or thematic

For more informantion, do contact us

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Risk Factors – Investments in Mutual Funds are subject to Market Risks. Read all scheme related documents carefully before investing. Mutual Fund Schemes do not assure or guarantee any returns. Past performances of any Mutual Fund Scheme may or may not be sustained in future. There is no guarantee that the investments objective of any suggested scheme shall be achieved. All existing and prospective investors are advised to check and evaluate the Exit loads and other cost structure (TER) applicable at the time of making the investments before finalizing on any investments decision for Mutual Funds schemes. We deal in Regular Plans only for Mutual Fund Schemes and earn a Trailing Commission on client investments. Disclosure For Commission earnings is made to clients at the time of investments. Option of Direct Plan for every Mutual Fund Scheme is available to investors offering advantage of lower expense ratio. We are not entitled to earn any commission on Direct plans. Hence we do not deal in Direct Plans.

AMFI Registered Mutual Funds Distributor | ARN-52894 | Initial Registration: 07-Sep-2007 | Validity: 07-Sep-2027