GIFT City Outbound AIFs are starting to become the premier vehicle for clients seeking overseas investment exposure. GIFT City, India's first International Financial Services Centre (IFSC), is a "foreign territory" within India for regulatory purposes, offering unparalleled efficiency, tax advantages, and regulatory clarity that traditional offshore routes simply cannot match.

Unified, Streamlined Regulation

• Single Regulator: Instead of navigating multiple domestic regulators (RBI, SEBI, etc.), all operations fall under the single, globally aligned International Financial Services Centres Authority (IFSCA). This leads to faster, clearer compliance.
  

• Onshore Control with Offshore Benefits: The structure offers the convenience and comfort of an Indian-based platform while providing the regulatory freedoms of a foreign jurisdiction, simplifying the entire investment process.
  

Powerful Portfolio Diversification & Access

• Global Market Access: The fund can invest 100% of its corpus in overseas securities, including global equities, bonds, private equity, and high-growth sectors like AI and EVs, robotics, biotechnology, and semiconductors that may be limited or non-existent in domestic markets.
  

• Hedge Against Rupee Depreciation: All transactions within the AIF are conducted in major foreign currencies (like USD, EUR, etc.), which helps clients hedge against long-term Rupee depreciation and preserve their global purchasing power.
  

Overseas Portfolio Investment (OPI)

GIFT allows for Indian entities to make “Overseas Portfolio Investment” (OPI) to the extent of 50% of their net worth as per the last audited balance sheet.

Operational Ease for the Investor

• Simplified Repatriation: The process for moving capital and returns is designed to be seamless and investor-friendly, without the extensive approvals and delays often encountered through traditional channels.
  

• Professional Management: The funds are managed by seasoned professionals with global expertise, offering dynamic asset allocation strategies that would be complex for individual investors to execute directly.
  

Fund-Level Taxation (for certain AIF types)

Category I and II AIFs offer a pass-through tax status. For Category III structures, tax is handled at the fund level, so investors do not have to pay further income tax in India on distributions or redemption proceeds.

GIFT City Outbound AIF offers a sophisticated, tax-efficient, and streamlined solution to access global wealth creation opportunities. As the framework continues to mature, it offers an additional avenue for investors to evaluate overseas exposure within a regulated IFSC structure.