- PPFAS GIFT launches two outbound fund-of-fund schemes to help Indian investors tap global wealth creation through GIFT City
• New offerings provide exposure to the S&P 500 and Nasdaq 100, unlocking access to leading global businesses and innovation-driven companies
• India represents just 3% of global market capitalisation, leaving 97% of investment opportunities beyond domestic markets
• Funds target retail investors, HNIs and family offices seeking international diversification through a regulated IFSC framework
• Tax-efficient structure, simplified compliance and potential mitigation of U.S. estate tax exposure enhance investor appeal
NE BUSINESS BUREAU
AHMEDABAD, JUNE 3
Seeking to position Gujarat International Finance Tec-City (GIFT City) as India’s gateway to global wealth creation, PPFAS Alternate Asset Managers IFSC Private Limited (PPFAS GIFT) has launched two outbound fund-of-fund (FoF) schemes designed to provide Indian investors access to nearly 97 per cent of global market opportunities that lie beyond domestic equities.
The move comes against the backdrop of India’s growing economic prominence. While the country remains one of the world’s fastest-growing major economies, it accounts for only about 3 per cent of global market capitalisation, leaving a vast universe of investment opportunities outside India’s borders.
To help investors participate in global growth, PPFAS GIFT has introduced the Parag Parikh IFSC S&P 500 Fund of Fund and the Parag Parikh IFSC Nasdaq 100 Fund of Fund, both launched through the International Financial Services Centre (IFSC) ecosystem at GIFT City.
The S&P 500 FoF offers diversified exposure to 500 of the largest listed companies in the United States and is intended to serve as a core component of a global investment portfolio. The Nasdaq 100 FoF, meanwhile, focuses on innovation-led businesses and technology-driven growth companies, catering to investors seeking higher growth potential.
Both schemes adopt a passive investment approach through investments in global exchange-traded funds (ETFs) and UCITS structures, providing investors with a simplified route to participate in international markets.
The launch underscores GIFT City’s emerging role as a strategic platform for outbound investments, allowing Indian investors to evolve from being consumers of global products and services to becoming stakeholders in the companies driving global economic growth.
Commenting on the opportunity, Hema Thakkar, Head – Business Development, PPFAS GIFT, said:
“India may be a small part of global market capitalisation, but Indian investors are deeply connected to global businesses in their daily lives. GIFT City enables a regulated and efficient pathway to participate in these companies and benefit from global growth.”
Industry observers note that Indian consumers regularly engage with global technology platforms, consumer brands and digital ecosystems. However, despite this integration into the global economy, most investment portfolios remain heavily concentrated in domestic assets.
By leveraging GIFT City’s regulatory framework, the new funds seek to bridge this disconnect and enable investors to align their portfolios more closely with the realities of a globally interconnected marketplace.
With a minimum investment threshold of USD 5,000, the schemes are aimed at a broad spectrum of investors, including:
- Retail investors seeking global diversification
- High Net-worth Individuals (HNIs)
- Family offices
- Investors looking to diversify beyond domestic equities and participate in global wealth creation through GIFT City
The funds also offer several structural advantages that enhance their appeal for internationally minded investors.
Key features include
- Taxation at the fund level, ensuring redemption proceeds are completely net of tax obligations
- Potential mitigation of U.S. estate tax exposure
- Simplified compliance requirements compared with direct overseas investing
As GIFT City continues to strengthen its position as India’s international financial gateway, initiatives such as these are expected to play a pivotal role in broadening investment horizons and enabling Indian investors to capture opportunities across the world’s most influential markets.
