About GIFT City Funds:
GIFT City (Gujarat International Finance Tec-City) is designed to be a global financial hub to attract global capital, and its funds offer several potential benefits for investors, particularly Non-Resident Indians (NRIs) and other global investors.
What are GIFT City Funds?
- These are funds established within GIFT City, regulated by the International Financial Services Centers Authority (IFSCA).
- They offer investment opportunities in foreign currencies, catering to both Indian and international investors, particularly Non-Resident Indians (NRIs).
- These funds can take various forms, including:
- Mutual Funds (MF)
- Alternative Investment Funds (AIF)
- Portfolio Management Services (PMS)
Benefits for Investors:
Access to Global Markets:
- GIFT City facilitates access to a wide range of global financial products and services, allowing investors to diversify their portfolios internationally.
- Funds in GIFT City can invest in global securities across multiple currencies, providing diversification and risk hedging.
Tax Advantages:
- GIFT City offers various tax incentives, including exemptions and concessional rates on certain income categories like capital gains and dividend income. This can significantly enhance investment returns.
- Certain interest income earned within GIFT City is also tax-free.
- There are also tax benefits on listed securities and bonds.
- Transactions within GIFT City are generally exempt from Goods and Services Tax (GST).
- Funds operating within GIFT city can have exemptions from TDS.
Favorable Regulatory Environment:
- The International Financial Services Centres Authority (IFSCA) provides a robust and streamlined regulatory framework, ensuring transparency and investor protection.
- This framework simplifies investment processes and reduces the compliance burden.
Professional Fund Management:
- GIFT City funds are managed by experienced professionals with expertise in global markets, aiming to generate optimal returns for investors.
Key Considerations:
- Some GIFT City funds may have higher minimum investment requirements.
- Liquidity can vary depending on the specific fund.
- It is always wise to consult with a financial advisor before making any investment decisions.
In essence, GIFT City aims to create a competitive and attractive investment destination by
offering:
- A business-friendly environment.
- Tax incentives.
- A strong regulatory framework.
- Access to global financial opportunities.
These factors combine to make GIFT City funds a potentially beneficial option for investors
seeking to diversify their portfolios and maximize returns.
