AIF in GIFT City: Unlocking a Global Gateway for Indian Investors

🔍 What is an AIF in GIFT City?

India’s financial landscape is undergoing a transformation, and at the heart of this change is the Gujarat International Finance Tec-City (GIFT City)—a tax-neutral, globally integrated financial hub designed to compete with international financial centers like Singapore and Dubai.

Among the many opportunities emerging from this smart city, Alternative Investment Funds (AIFs) in GIFT City are capturing attention from HNIs, NRIs, and family offices alike. From tax efficiency to global exposure, GIFT City AIFs are shaping up to be a game-changer in India’s wealth management and investment ecosystem.

An Alternative Investment Fund (AIF) is a privately pooled investment vehicle that collects funds from sophisticated investors to invest in accordance with a defined investment strategy. These include private equity funds, hedge funds, venture capital funds, and more.

Setting up an AIF in GIFT City, especially under the GIFT IFSC (International Financial Services Centre) jurisdiction, offers several regulatory and tax advantages that are not available elsewhere in India.

🚀 Key Advantages of AIFs in GIFT City

1. Tax Benefits

One of the biggest incentives for investors and fund managers is the tax-neutral environment:

• No capital gains tax for non-residents.

• No dividend distribution tax (DDT).

• No securities transaction tax (STT) or commodity transaction tax (CTT).

• Income earned by Category III AIFs (hedge funds) from trading in securities is exempt from tax if all investors are non-residents.

👉 Gift City AIF taxation is among the most favorable in Asia.

2. Regulatory Ease

• The International Financial Services Centres Authority (IFSCA) acts as the unified regulator in GIFT IFSC, ensuring fast-track approvals, simplified compliance, and a single-window clearance process.

3. Global Accessibility

AIFs in GIFT City can:

• Raise capital in foreign currencies.

• Invest globally across asset classes.

• Cater to Non-Resident Indians (NRIs), foreign portfolio investors (FPIs), and international institutions.

4. Low Setup Costs

Compared to major international hubs, the cost of setting up and operating an AIF in GIFT City is significantly lower, making it a viable option for boutique firms and new-age fund managers.

🏗️ Setting Up an AIF in GIFT City: A Step-by-Step Overview

1. Choose the AIF Category:

• Category I: Venture capital, social venture, SME funds.

• Category II: Private equity, debt funds.

• Category III: Hedge funds, long-short strategies.

2. Register with IFSCA

Submit application with business plan, KYC details, and investor information.

3. Appoint Key Intermediaries

These include:

• Fund Manager

• Custodian

• Trustee (like Axis Trustee or similar)

• Auditors and Legal Advisors

4. Operational Setup

Open a bank account in GIFT IFSC, onboard investors, and start deploying capital.

🧠 Expert Tip: If you're looking at setting up AIF in GIFT City, consider engaging professional firms like TreeLife, Incorp Advisory, or Motilal Oswal for smoother execution.

🧾 GIFT City AIF Regulations: What You Should Know

The regulatory framework is governed by the IFSCA (Fund Management) Regulations, 2022. Key points include:

• Minimum investment per investor: USD 150,000 (approx. ₹1.25 crore).

• Leverage allowed for Category III AIFs.

• KYC/AML aligned with global standards.

• Mandatory appointment of fund administrator for transparency.

For more on Gift City AIF regulations, visit IFSCA Guidelines.

💼 Who is Investing in GIFT City AIFs?

NRIs: Due to tax efficiency and global investment scope. HNIs & Family Offices: Seeking alternatives to traditional MF/FD portfolios. Institutional Investors: Exploring new geographies and sectors. Startups & VC Funds: Attracted by relaxed regulatory environment and access to foreign capital. 📌 Motilal Oswal GIFT City AIF is a prime example of how reputed fund houses are leveraging this opportunity.

📃 List of AIFs in GIFT City (Popular Names)

While the list of AIF in GIFT City is growing rapidly, here are a few notable names:

• Motilal Oswal IFSC AIF

• ICICI Venture IFSC

• Axis Capital AIF

• True Beacon Global AIF

• 360 ONE IFSC AIF

You can access the GIFT City AIF list on the IFSCA portal.

🧮 Gift City AIF Minimum Investment & Who Should Consider It

The minimum investment threshold is USD 150,000, making it suitable for:

• HNIs and UHNIs

• NRIs with India-focused goals

• Corporate treasuries

• Private wealth managers

💬 Expert Take: Why GIFT City AIFs Make Sense in 2025

“With tax incentives, global flexibility, and regulatory clarity, AIFs in GIFT City are no longer just an experiment—they’re becoming the default structure for sophisticated investors.”

— Rajesh Cheruvu, CIO, LGT Wealth India

“The ease of setting up and operating in GIFT IFSC is a game-changer. We are seeing a sharp increase in fund launches in this jurisdiction.”

— Ankit Agarwal, Partner, Incorp Advisory

🧠 Final Thoughts

The rise of AIFs in GIFT City signals a paradigm shift in how Indian and global investors approach alternative investments. Whether you’re a seasoned fund manager, an NRI looking to diversify, or an HNI seeking alpha, GIFT City offers an unmatched ecosystem to launch or participate in high-potential AIFs.

At GetUltra.club, we help you discover, analyze, and compare the best investment opportunities—including exclusive access to GIFT City AIFs. Explore now and take your portfolio global.

❓ FAQs on AIF in GIFT City

What is the minimum investment in a GIFT City AIF?

A: USD 150,000 (approx. ₹1.25 crore) is the minimum required investment per investor.

Are there tax benefits for NRIs investing in GIFT City AIFs?

A: Yes. NRIs enjoy exemptions from capital gains tax and dividend tax on eligible AIFs.

Can GIFT City AIFs invest outside India?

A: Absolutely. One of the biggest advantages is the ability to invest across global markets.

How do I register an AIF in GIFT City?

A: You must apply to IFSCA, appoint required intermediaries, and meet minimum regulatory criteria.

Where can I find the list of AIFs in GIFT City?

A: The full Gift City AIF list is available on the IFSCA’s official website.