Distributors check out GIFT City funds for global mkts

Mirae Asset Global Allocation Fund IFSC invests in ETFs tracking global indices in sectors like AI and semiconductors

- Srushti Vaidya

Indian investment distributors are increasingly turning to GIFT City to tap into offshore fund offerings, as demand for global equity exposure surges among retail and high-net-worth investors. But here, too, the options are limited.

With the traditional route of accessing international markets via domestic mutual funds largely shut due to regulatory caps, distributors—specifically, mutual fund distributors and independent financial advisers—are eyeing GIFT City-based outbound funds as a viable alternative.

This bottleneck with the mutual fund route, however, has led to inflated premiums on older global exchange traded fund offerings, leaving investors with few options for diversification.