Global Diversification, Tax Efficiency, and Seamless Investing with Moat Wealth
For Non-Resident Indians (NRIs), wealth management is more complex than ever. From regulatory hurdles in India to compliance obligations abroad, NRIs face a daunting task when trying to grow their wealth across borders. Traditional offshore investment avenues—such as Singapore, Mauritius, or Luxembourg—have long been the preferred route. But India now offers a powerful alternative: GIFT City, a globally competitive financial centre built specifically for cross-border investors.
At Moat Wealth, we specialize in helping NRIs take full advantage of this opportunity. This guide explains exactly how you, as an NRI, can invest in mutual funds via GIFT City, including eligibility, documentation, country-specific nuances, and how our team makes the entire process effortless for you.
What is GIFT City?
GIFT City (Gujarat International Finance Tec-City) is India’s first and only International Financial Services Centre (IFSC), located in Gandhinagar, Gujarat. It was established to bring offshore financial activity—previously routed through global tax havens—back to Indian shores, but under internationally benchmarked regulatory standards.
It operates under a unified regulatory body, the International Financial Services Centres Authority (IFSCA). Unlike the mainland, which is subject to multiple financial regulators (SEBI, RBI, IRDAI, etc.), GIFT City’s single-window clearance offers speed, clarity, and ease of doing business.
For NRIs, this translates into a tax-friendly, repatriation-friendly, and compliance-friendly investment gateway—with Indian trust and global flexibility.
Why Mutual Funds via GIFT City Are a Game-Changer for NRIs
Unlike traditional mutual funds in India, which are bound by rupee-denominated regulations and complex cross-border restrictions, GIFT City offers mutual funds that are:
- Denominated in foreign currencies like USD, GBP, and EUR
- Exempt from several Indian taxes (including STT and capital gains in certain cases)
- Compliant with FATCA/CRS, easing the burden for NRIs in countries like the US and UK
- Fully repatriable, allowing you to withdraw your funds without currency control concerns
You gain access to a range of global investment options—U.S. stocks, international bonds, thematic global funds—all through Indian fund managers operating from a world-class jurisdiction.
Step-by-Step Process: How NRIs Can Invest in GIFT City Mutual Funds
Step 1: Partner with a GIFT City-Qualified Advisor
Not every financial advisor is familiar with the evolving GIFT City landscape. At Moat Wealth, we are GIFT City-ready and licensed to coordinate with AMCs (Asset Management Companies) operating in the IFSC. We help you:
- Select the right AMC and scheme based on your goals
- Understand minimum investments (typically USD 150,000 for lump sum)
- Align your portfolio with your country’s tax treaty (DTAA)
- Ensure compliance with both Indian and international regulations
This first step is crucial. GIFT City mutual funds are regulated differently from those on India’s mainland, and require dedicated onboarding expertise.
Step 2: Complete IFSCA-Compliant KYC Onboarding
GIFT City onboarding is digital, but NRIs must comply with IFSCA and FEMA norms. You’ll need to submit:
- A valid passport with visa or residency details
- Proof of overseas address (utility bill, bank statement, etc.)
- Indian PAN card for tax and regulatory purposes
- Bank account details (foreign or NRE/NRO accounts)
- Recent photograph and signature
Moat Wealth ensures this process is handled online, with minimal friction. Our advisors also guide you on FATCA and CRS declarations, which are required to avoid issues with overseas tax authorities.
Step 3: Choose the Right Mutual Fund
GIFT City AMCs offer a wide variety of mutual fund schemes including:
- Global Equity Funds: Exposure to U.S. blue-chip stocks, tech giants, and emerging markets
- International Debt Funds: Sovereign and corporate bonds from developed economies
- Hybrid Funds: Balanced exposure to equity and fixed-income across geographies
- Thematic Funds: Focused on AI, ESG, clean energy, healthcare, and more
Each fund is evaluated for:
- Currency denomination (most commonly USD)
- Entry and exit loads
- Lock-in periods
- Tax implications (varies by jurisdiction)
- Underlying asset classes
We also assess liquidity, fund manager track record, and past performance to help you make informed choices.
Step 4: Make Your Investment
Once your KYC is approved, you’ll transfer funds directly to the fund house or custodian.
You can invest:
- From your NRE or NRO account in India, or
- Directly from your overseas bank account
Investments are denominated in foreign currency, typically USD. Some schemes also offer GBP or EUR options.
At Moat Wealth, we handle the documentation trail and ensure the remittance is mapped correctly to your GIFT City investment—complete with your Foreign Inward Remittance Certificate (FIRC) for your records.
Step 5: Receive Confirmation and Start Tracking Performance
Once invested, you’ll receive:
- A digital confirmation of your holdings
- Secure access to NAV statements, fund factsheets, and performance reports
- Regular updates from Moat Wealth on fund health, rebalancing needs, and tax documentation
We also assist with redemptions, withdrawals, and re-investments based on market conditions and your evolving goals.
How GIFT City Works Differently for NRIs Based on Country of Residence
🌎 NRIs in the United States
- Often face FATCA-related restrictions when investing in Indian mutual funds
- GIFT City AMCs are structured to be FATCA-compliant, offering easier access
- U.S. tax authorities scrutinize offshore accounts; GIFT City provides transparent, reportable structures
- Dividend income and capital gains may still be reportable in the U.S.—Moat helps with compliant structuring
🇬🇧 NRIs in the United Kingdom
- Benefit from the India-UK DTAA, reducing tax on certain investment income
- GIFT City eliminates UK investors’ need to rely on complex overseas trusts or wrappers
- Our advisors help align investment timelines with UK CGT (Capital Gains Tax) planning
🇦🇪 NRIs in the UAE, Qatar, and GCC
- No personal income tax at home means returns from GIFT City investments can be enjoyed tax-free
- These NRIs often prefer USD-denominated investments, avoiding INR exposure
- GIFT City is ideal for long-term capital preservation and growth
🇨🇦 NRIs in Canada
- CRS compliance is mandatory—Moat Wealth ensures full documentation
- Canadian NRIs often benefit from currency hedging options available through GIFT City
- Transparent reporting helps avoid double taxation
Why Moat Wealth Is the Right Partner for Your GIFT City Journey
Investing in GIFT City isn’t just about choosing a fund—it’s about understanding how global compliance, Indian regulation, and personal financial planning come together.
With Moat Wealth, you get:
- ✅ Expert navigation of Indian and foreign compliance requirements
- ✅ Access to a curated list of IFSCA-approved funds and AMCs
- ✅ Personalized fund recommendations based on your country of residence
- ✅ Assistance with onboarding, documentation, and tax reporting
- ✅ Regular portfolio reviews and performance tracking
We act as your end-to-end advisor—ensuring your international investment journey is stress-free, transparent, and tailored to your goals.
Frequently Asked Questions
Is GIFT City regulated like traditional Indian markets?
Yes. It’s regulated by IFSCA, which consolidates SEBI, RBI, and other regulatory powers into one dedicated body for international transactions.
What’s the minimum investment for GIFT City mutual funds?
Most funds require USD 150,000. Some may allow SIPs or lower thresholds for select clients, which Moat Wealth can advise on.
Can I invest from abroad without visiting India?
Absolutely. Our entire process—from KYC to investment reporting—is digital and NRI-friendly.
Are there any lock-in periods?
Most funds have no lock-in, but redemption terms vary. Moat ensures you’re fully aware of exit conditions before investing.
Final Thoughts
GIFT City represents the future of Indian finance—a globally connected, regulation-light, tax-efficient investment destination for NRIs. With access to global mutual funds, superior tax treatment, and full repatriability, GIFT City mutual funds offer a new way to grow your wealth internationally—without the baggage of old-world complexity.At Moat Wealth, we simplify this journey for you—helping you invest with confidence, across borders and asset classes, while staying fully compliant.
