For NRIs looking for structured access to Indian and global investments, GIFT City has become an increasingly important financial centre. The International Financial Services Centre, or GIFT IFSC, provides a regulated framework through which eligible investors can access alternative investment funds, retail schemes, fund-of-funds structures, portfolio management services and other investment products. That makes the search for the top GIFT City funds for NRI particularly relevant in 2026.
However, there is no single “best” GIFT City fund for every NRI. The right choice depends on investment objective, ticket size, liquidity requirements, risk appetite, currency exposure, tax position, investment horizon and eligibility.
IFSCA's current framework is the IFSCA (Fund Management) Regulations, 2025, which provides a unified framework for fund-management activities in GIFT IFSC. IFSCA describes registered FMEs as being able to offer products including retail schemes, non-retail schemes/AIFs and PMS, depending on their registration category.
This guide examines 10 funds and strategies available through ALTPORT and explains how NRIs can compare them.
Important: Inclusion in this article does not mean that ALTPORT considers every fund suitable for every investor. Fund terms, eligibility, fees, liquidity and taxation can change. Investors should review the latest authorised fund documents before investing.
What Are GIFT City Funds and How Do They Work for NRIs?
GIFT City funds are investment schemes established within GIFT International Financial Services Centre (GIFT IFSC) and operated under the applicable IFSCA regulatory framework.
For an NRI, the basic attraction is that GIFT IFSC can provide a dedicated international financial-services environment for investing in India and global assets.
Depending on the structure, a GIFT City fund may invest in:
- Indian listed equities
- Global equities
- Private credit
- Private markets
- SME and microcap opportunities
- Indian mutual funds
- Other AIFs
- ETFs and permitted securities
- Fund-of-funds structures
The regulatory distinction between retail schemes and restricted/non-retail schemes is particularly important.
Under the 2025 regulations, IFSCA has separate frameworks for retail and non-retail activities, with different investor eligibility and regulatory requirements.
Therefore, an NRI should not assume that every GIFT City fund is open to every investor.
How We Selected the Top GIFT City Funds for NRI Investment
Our selection is based on a combination of factors rather than simply past returns.
For this list of top GIFT City funds for NRI investment, we considered:
- Investment strategy
- Fund structure
- Underlying portfolio
- Minimum investment
- Liquidity
- Lock-in or tenure
- Fees
- Performance fee and hurdle rate
- Currency denomination
- Risk profile
- Access for NRIs/global investors
- Manager experience
- Diversification
- Investment objective
- Availability of relevant fund documentation
This is particularly important because a diversified flexicap strategy and a private-credit fund cannot be compared purely on historical return.
Top GIFT City Funds for NRIs at a Glance
| Fund | Broad Strategy | Structure / Category | Currency | Investor Profile |
| ABSL India Flexicap Fund (IFSC) | Indian equities / Flexicap | Category III AIF | USD | NRIs & foreign investors |
| ABSL Global Bluechip Equity Fund (IFSC) | Global bluechip equities | Category III AIF, Restricted | USD | Eligible NRIs & global investors |
| ALCHEMY INDIA LONG TERM FUND | Long-only Indian equities | GIFT City fund | USD | Eligible investors |
| Carnelian India Amritkaal Fund | Indian flexicap equities | Category III AIF | USD | Offshore investors including NRIs |
| Steptrade India Fund | SME & microcap | Category III Restricted AIF | — | Eligible global investors |
| Neo Special Credit Opportunities Fund II | Private credit | Category II AIF + GIFT feeder | USD | HNI/UHNI/global investors |
| Neo Secondaries Fund | Private-market secondaries | Category II AIF | USD | Eligible investors |
| Motilal Oswal Ethical Strategy | Ethical Indian equities | PMS | INR | Eligible investors |
| Motilal Oswal Gift City India Equity Fund of Funds Trust | Indian mutual funds | Category III AIF / FPI | — | Eligible investors |
| Abakkus Aryabhata India Fund | Long-only Indian equities | UCITS / FPI structure | USD | Offshore investors |
Note: This is a comparative overview, not a ranking by expected returns.
1. ABSL India Flexicap Fund (IFSC)
The ABSL India Flexicap Fund (IFSC) is a USD-denominated Category III AIF in GIFT City that provides NRIs and foreign investors with access to Indian equities through an IFSC feeder structure.
The fund invests into the underlying ABSL Flexicap Fund, whose investment strategy follows a flexicap approach. The underlying fund has a long investment history dating back to 1998.
The IFSC fund launched on 10 September 2024 and is regulated within the GIFT City framework by IFSCA.
Why it stands out:
- Indian equity exposure
- Flexicap strategy
- USD denomination
- GIFT City Category III AIF
- NRI/global-investor access
- Established underlying investment strategy
For an NRI looking for a relatively straightforward Indian equity allocation through GIFT City, this is one of the funds worth evaluating.
2. ABSL Global Bluechip Equity Fund (IFSC)
The ABSL Global Bluechip Equity Fund (IFSC) takes a different approach.
Instead of focusing primarily on Indian equities, the fund provides exposure to a concentrated portfolio of global bluechip companies through a feeder structure.
It is a Restricted Scheme (Non-Retail), Category III close-ended AIF under the IFSCA framework. The fund targets approximately 20–30 global bluechip stocks.
The fund has a four-year tenure from first closing, with a possible one-year extension.
Minimum commitment varies by share class, with the product page showing different thresholds for different investor classes, including accredited investors.
Best suited for: investors looking beyond India and seeking global equity exposure through GIFT City.
3. ALCHEMY INDIA LONG TERM FUND
The ALCHEMY INDIA LONG TERM FUND is focused on long-term Indian equity investing.
Its portfolio generally consists of around 20–40 positions, with a concentrated, bottom-up approach. The fund is market-cap agnostic and seeks long-term absolute returns.
The reported structure includes:
- USD currency exposure
- Monthly subscription
- Fortnightly redemptions
- 15% performance fee over a 6% hurdle
- Subscription fee of up to 2%
- Exit fee structure based on holding period
The product page reports exit charges of 3% during months 0–12, 2% during months 13–24, 1% during months 25–36 and nil thereafter.
This makes the fund particularly relevant when evaluating GIFT City performance fee, GIFT City hurdle rate and GIFT City fund exit load.
4. Carnelian India Amritkaal Fund
The Carnelian India Amritkaal Fund is a USD-denominated, open-ended Category III AIF domiciled in GIFT IFSC.
It follows a long-only, flexicap and sector-agnostic strategy focused on India's long-term structural growth.
The fund has approximately 30 stocks and follows a QGARP — Quality Growth at Reasonable Price — philosophy combined with proprietary forensic analysis.
The minimum initial investment reported for offshore investors is USD 150,000. A hedged unit class is also available.
The reported fee structure includes a 6% hurdle and 15% performance fee, while the reported exit load is 2% for exits within 24 months and nil thereafter.
This is an example of why investors should examine GIFT City fund minimum investment, GIFT City performance fee, GIFT City hurdle rate and GIFT City fund exit load rather than looking only at return numbers.
5. Steptrade India Fund
For investors seeking a more specialised opportunity, the Steptrade India Fund focuses on India's SME and microcap ecosystem.
It is structured as a Category III Restricted Non-Retail Scheme AIF under the IFSCA framework and combines the AIF structure with a Category I FPI licence.
Its strategy can allocate:
- Up to 40% towards anchor investments in SME and microcap IPOs
- Up to 60% towards QIB participation in SME/microcap IPOs and listed microcap companies
The strategy particularly focuses on companies with market capitalisation up to approximately ₹1,000 crore.
This can be attractive for investors looking for differentiated exposure, but the risks are also higher.
SME and microcap investments involve:
- Higher volatility
- Liquidity risk
- Valuation risk
- IPO allocation risk
- Company-specific risk
Therefore, this is not necessarily appropriate for every NRI portfolio.
6. Neo Special Credit Opportunities Fund II
Investors searching for a GIFT City private credit fund may find the Neo Special Credit Opportunities Fund II particularly relevant.
The strategy focuses on special credit opportunities and direct lending, primarily targeting traditional manufacturing and asset-heavy industries.
The ALTPORT product page reports:
- Target fund size: $720 million
- Tenure: 6.5 years
- Target gross dollar IRR: 21–21.5%
- Target net dollar return: 15.9–17.8% after fees and carry
- Hurdle: 10%
- Legal structure: SEBI Category II AIF with an IFSCA-registered GIFT City feeder
These are target/strategy figures, not guaranteed returns.
Private credit has a very different risk-return profile from listed equity. Investors should evaluate borrower quality, collateral, seniority, concentration, default risk, duration and liquidity.
7. Neo Secondaries Fund
The Neo Secondaries Fund provides exposure to secondary opportunities in Indian private companies.
The strategy focuses on established businesses with characteristics such as:
- Positive EBITDA
- Revenue growth
- Market leadership
- Potential discounted entry valuations
- Defined exit pathways
The product page reports a target size of approximately $250 million, a six-year tenure with a 1+1 year extension option and a minimum investment of $150,000. Its target gross IRR is approximately 23–25%, with estimated net USD returns of 18.5–20.2% after fees and carry.
Again, target returns should not be interpreted as guaranteed performance.
8. Motilal Oswal Ethical Strategy
The Motilal Oswal Ethical Strategy is different from the AIFs in this list because it is a PMS strategy.
It follows a multi-cap/flexicap equity approach using ethical screening combined with the QGLP philosophy — Quality, Growth, Longevity and Price.
The strategy has approximately 20 holdings and a reported minimum investment of ₹50 lakh. The reported fee structure includes a 2.50% fixed fee or a performance-linked structure with an 8% hurdle and 20% profit sharing, depending on the applicable arrangement.
This makes it useful for an NRI comparing GIFT City AIF vs PMS vs mutual fund structures.
9. Motilal Oswal Gift City India Equity Fund of Funds Trust
The Motilal Oswal Gift City India Equity Fund of Funds Trust uses a fund-of-funds approach.
Its strategy is to invest in onshore Indian mutual funds.
The trust is domiciled in GIFT City and is registered as a Category III AIF with IFSCA and as a Category I FPI with SEBI, according to the ALTPORT product page.
This structure may be particularly relevant for investors who want diversified Indian equity exposure through an international financial-centre structure rather than selecting individual securities.
10. Abakkus Aryabhata India Fund
The Abakkus Aryabhata India Fund provides another route to Indian equity exposure for offshore investors.
The strategy is focused on a long-only Indian equity portfolio designed to participate in India's growth story.
Its portfolio approach includes exposure across large-, mid- and small-cap companies, with the underlying fund structure described in the ALTPORT presentation as an FPI/UCITS-based arrangement.
The strategy uses position sizing and sector limits as part of its risk discipline.
For an NRI evaluating the top GIFT City funds for NRI, this is worth considering alongside the other Indian equity strategies rather than evaluating it in isolation.
Top Lower-Ticket GIFT City Funds for NRIs
“Lower ticket” needs to be interpreted carefully.
A GIFT City fund does not necessarily have one universal minimum investment for all investors. Minimums can vary by:
- Scheme
- Share class
- Investor classification
- Accredited-investor status
- Fund structure
- Retail vs non-retail classification
The IFSCA framework has also evolved.
Under the 2025 regulations, the retail-scheme framework was made more flexible, including changes to scheme corpus requirements and close-ended retail-scheme listing provisions.
Therefore, investors should not assume that the USD 150,000 threshold applicable to one restricted fund applies to every GIFT City fund.
Top Restricted GIFT City Funds and AIFs for NRIs
Restricted or non-retail schemes generally target investors who meet specified eligibility or investment thresholds.
Examples in our list include:
- ABSL Global Bluechip Equity Fund (IFSC)
- Steptrade India Fund
- Carnelian India Amritkaal Fund
- Neo Special Credit Opportunities Fund II
- Neo Secondaries Fund
The distinction matters because restricted schemes can have different:
- Minimum investment
- Liquidity
- Investment flexibility
- Portfolio concentration
- Eligibility
- Risk characteristics
IFSCA's 2025 framework specifically distinguishes retail and non-retail fund-management activities.
GIFT City Retail Schemes vs Restricted Funds
| Feature | Retail Scheme | Restricted / Non-Retail |
| Target investor | Wider investor base | Eligible / higher-threshold investors |
| Investment threshold | Generally lower | Generally higher |
| Investment flexibility | More prescribed limits | Greater flexibility |
| Risk profile | Depends on strategy | Often higher / more specialised |
| Liquidity | Scheme-specific | Often lower |
| Examples | Retail-oriented schemes | Category II/III AIFs |
The IFSCA 2025 framework permits registered FMEs to manage retail schemes as well as non-retail schemes depending on their registration category.
GIFT City AIF vs Mutual Fund vs PMS for NRIs
| Factor | GIFT City AIF | Mutual Fund | PMS |
| Structure | Fund/pooled vehicle | Pooled vehicle | Managed portfolio |
| Customisation | Limited | Limited | Higher |
| Minimum investment | Scheme-specific | Usually lower | ₹50 lakh framework |
| Liquidity | Scheme-specific | Usually higher | Strategy-specific |
| Transparency | Fund-level | High | Portfolio-level |
| Global/IFSC access | Strong | Depends on structure | Depends on setup |
| Alternative assets | Possible | Limited | Possible |
| Performance fee | Common in AIFs | Generally not structured this way | Possible |
| Lock-in | Strategy-specific | Scheme-specific | Usually no traditional lock-in |
The key point is that AIF, mutual fund and PMS are not interchangeable products.
An NRI should first identify the desired exposure and then choose the vehicle.
Minimum Investment and Eligibility for GIFT City Funds
One of the most important questions when comparing the top GIFT City funds for NRI is: “How much do I actually need to invest?”
There is no single answer.
For example, the Carnelian India Amritkaal Fund reports a minimum initial investment of USD 150,000 for offshore investors.
Neo Secondaries Fund also reports a minimum investment of $150,000.
ABSL Global Bluechip, however, has different minimum commitment ranges depending on share class and investor category.
This is why investors should check the latest:
- Private Placement Memorandum
- Application form
- Term sheet
- Share-class documentation
- Eligibility declaration
- Subscription documents
before committing capital.
Fees, Exit Loads, Lock-In and Liquidity
The headline management fee is only one part of the cost.
When comparing GIFT City funds, examine:
Management Fee
Usually charged as a percentage of assets or committed capital depending on the structure.
Performance Fee
Some alternative funds charge a performance fee above a specified hurdle.
Hurdle Rate
A hurdle rate is the return threshold that may need to be achieved before performance fees apply, depending on the fund's waterfall.
Exit Load
An exit load may apply when investors redeem before a specified period.
Underlying Fund Expenses
A feeder or fund-of-funds structure can have expenses at both the GIFT City vehicle and underlying fund level.
Lock-In
Some funds have no traditional lock-in but still have redemption restrictions or notice periods.
Liquidity
“Open-ended” does not automatically mean daily liquidity.
For example, Alchemy's product information states fortnightly redemptions and a time-based exit-fee structure.
Tax Treatment of GIFT City Funds for NRIs
Tax is one of the most searched areas around GIFT City tax benefits for NRIs.
However, investors should avoid the simplistic claim that “all GIFT City investments are tax-free.”
The actual tax outcome depends on:
- Fund structure
- Investor residency
- Nature of income
- Underlying investment
- Whether the vehicle qualifies for a specific exemption
- Home-country tax rules
- Applicable Indian tax provisions
- Tax treaty considerations
Section 10(4D)
Section 10(4D) is particularly relevant to specified funds and certain IFSC-related structures.
IFSCA's own material explains that Section 10(4D) provides specific tax treatment for qualifying specified funds and certain categories of income.
That does not mean that every NRI investor personally receives a blanket exemption on every return from every GIFT City fund.
Taxation can occur at different levels depending on the structure.
Therefore, GIFT City capital gains tax, GIFT City fund TDS and NRI taxation GIFT City must be analysed fund-by-fund and investor-by-investor.
Are GIFT City Funds Tax-Free?
Not necessarily.
A fund may have a tax exemption at the fund level for qualifying income while the investor may still have tax obligations in another jurisdiction.
For example, the ALTPORT product information for certain GIFT City structures describes income as exempt at the GIFT City level while noting that investors should consult tax advisors in their home jurisdiction.
Tax advice should always be obtained from a qualified professional before investing.
Currency Exposure and Repatriation of GIFT City Investments
Currency is another major consideration.
Many GIFT City funds are USD-denominated funds India, although the exact currency depends on the fund.
For example:
- ABSL India Flexicap Fund (IFSC): USD
- ABSL Global Bluechip Equity Fund: USD
- Alchemy India Long Term Fund: USD
- Carnelian India Amritkaal Fund: USD
A USD NAV can be useful for an NRI whose wealth is already denominated in dollars.
But it does not eliminate currency risk.
Suppose an underlying investment rises 10% in INR terms while the rupee depreciates significantly against the dollar. The return measured in USD can be materially different.
Therefore, investors should distinguish:
Investment return ≠ currency-adjusted return
Some funds may also offer hedged share classes, as in the Carnelian strategy.
GIFT City Fund Eligibility for US, Canadian, UAE and UK NRIs
Being an NRI does not automatically mean that every GIFT City fund is available to you.
Eligibility can depend on:
- Country of residence
- Citizenship
- Investor classification
- FATCA/CRS requirements
- Fund-specific restrictions
- Local securities laws
- Accredited-investor status
- Source of funds
- KYC/AML requirements
US NRIs
US-based investors should pay particular attention to FATCA, PFIC considerations and US tax reporting.
Canadian NRIs
Canadian tax residents should independently evaluate Canadian reporting and taxation.
UAE NRIs
UAE-based investors may have a different tax profile, but Indian and fund-level tax rules still need to be evaluated.
UK NRIs
UK tax residents should review UK reporting and taxation in addition to the Indian/IFSC structure.
A fund being available to “NRIs” on a general basis does not override the investor's local-country regulations.
How NRIs Can Invest in GIFT City Funds: Process and Documents
The typical process involves:
Step 1 — Fund Selection
Compare strategy, risk, fees, minimum investment, liquidity and currency.
Step 2 — Eligibility Check
Confirm that your residency, investor status and jurisdiction meet the fund's requirements.
Step 3 — KYC
Typical documents can include:
- Passport
- Overseas address proof
- NRI/OCI status documentation
- PAN, where applicable
- Tax residency details
- Source-of-wealth documents
- FATCA/CRS declarations
Step 4 — Application
Complete the relevant fund application and subscription documentation.
Step 5 — AML/KYC Review
The fund administrator/FME performs applicable verification.
Step 6 — Transfer Funds
Funds are transferred through the permitted banking channel.
Step 7 — Allocation
Units are allotted after the applicable checks and fund-level processing.
The exact process varies from fund to fund.
Risks of Investing in GIFT City Funds
A GIFT City structure does not remove investment risk.
Market Risk
Equity funds can fall when markets decline.
Credit Risk
Private credit strategies can face borrower defaults or restructuring.
Liquidity Risk
Private-market and restricted funds may have limited redemption opportunities.
Currency Risk
USD-denominated funds investing in INR assets can experience currency-related gains or losses.
Concentration Risk
Concentrated strategies can be more sensitive to individual holdings.
Manager Risk
Investment outcomes depend partly on the skill and discipline of the fund manager.
Regulatory Risk
IFSCA regulations can evolve.
Tax Risk
Tax treatment can depend on fund structure and investor circumstances.
Underlying Fund Risk
A feeder fund adds another layer between the investor and the ultimate portfolio.
Performance Fee Risk
A fund with a performance fee can have a materially different net return from its gross return.
How to Compare and Select a GIFT City Fund
Before selecting from the top GIFT City funds for NRI, use this checklist.
1. What am I investing for?
Growth? Income? Diversification? Private markets? Indian equities?
2. What is my investment horizon?
One year, five years or ten years can lead to completely different choices.
3. What is my base currency?
USD investors should pay particular attention to currency exposure.
4. How much can I invest?
Compare the actual minimum investment and share-class threshold.
5. Can I tolerate illiquidity?
A private-credit or secondaries strategy may not suit an investor who needs immediate liquidity.
6. What are the total fees?
Look beyond management fees.
Calculate:
Management Fee + Performance Fee + Underlying Fund Expenses + Transaction/Administration Costs
7. What is the hurdle rate?
A 6% hurdle and a 10% hurdle can produce very different performance-fee economics.
8. What is the exit mechanism?
Understand redemption frequency, notice period and exit load.
9. What is the currency exposure?
Look at both fund currency and underlying asset currency.
10. What is the tax treatment?
Do not select a fund solely because someone describes it as “tax-free.”
Final Takeaway: Which GIFT City Fund Is Right for You?
The growth of GIFT IFSC means NRIs now have a broader range of investment structures to evaluate.
But the top GIFT City funds for NRI investment should not be selected simply by looking at the highest historical or target return.
An investor looking for diversified Indian equities may evaluate ABSL India Flexicap Fund, Alchemy India Long Term Fund, Carnelian India Amritkaal Fund or Abakkus Aryabhata India Fund.
Someone looking for global equities could consider the ABSL Global Bluechip Equity Fund.
An investor seeking private credit or private-market exposure could evaluate Neo Special Credit Opportunities Fund II or Neo Secondaries Fund.
And investors seeking specialised SME/microcap exposure could examine Steptrade India Fund.
The most important question is therefore not:
“Which is the best GIFT City fund?”
It is:
“Which GIFT City fund structure, strategy, risk level, liquidity profile and currency exposure best fits my financial objectives?”
That distinction can make a significant difference to an NRI investor's overall portfolio construction.
Invest Through ALTPORT
ALTPORT helps investors explore AIFs, PMS and GIFT City investment opportunities through a research-led approach.
If you're evaluating the top GIFT City funds for NRI investment, ALTPORT can help you understand:
- Fund structure
- Investment strategy
- Eligibility
- Minimum investment
- Fees
- Liquidity
- Risk factors
- Currency exposure
- Fund documentation
Explore GIFT City investment opportunities with ALTPORT and request the latest authorised fund documents before making an investment decision.