Phillip Capital GIFT City Fund: A Complete Guide for NRIs & Foreign Investors

Introduction: A New Gateway to India for Global Investors

For NRIs and foreign investors, allocating capital to India has always been compelling—but operational complexity, taxation uncertainty, and access constraints often diluted the opportunity. The emergence of GIFT City (IFSC) has fundamentally changed this equation.

The Phillip Capital GIFT City Fund is designed to give offshore investors a clean, regulated, and professionally managed route to India’s public equity markets. Structured as a Category III AIF under IFSC regulations, the fund combines India’s long-term growth potential with global-grade fund governance and research discipline.

This guide explains why India, why GIFT City, and why this fund, breaking down the investment thesis, portfolio strategy, fee structure, and suitability—so investors can make an informed allocation decision.

Phillip Capital GIFT City Fund – An Overview for Global Investors

The Phillip Capital GIFT City Fund, formally known as Phillip India – Billion Opportunities Fund, is a long-only India public markets strategy domiciled in GIFT City and regulated under the IFSC framework.

It is exclusively available to NRIs and foreign nationals, offering exposure to Indian listed equities across large, mid, and small caps through a single offshore structure.

Key characteristics

• Category III Restricted Scheme under IFSC
• Long-only India public equity fund
• Flexi-cap mandate (large, mid, small caps)
• Monthly liquidity
• Open-ended structure
• USD-denominated investment

This structure allows global investors to participate in India’s equity markets without navigating onshore complexities, while benefiting from professional fund management and institutional-grade risk controls .

Why Global Investors Are Looking at India — And Why Timing Matters

India’s investment case today is not cyclical—it is structural.

The Three Constants of India’s Growth Story

India’s long-term trajectory rests on three enduring pillars:

Democracy
India is the world’s largest democracy with stable institutions, a strong central bank, and an independent judiciary. Policy continuity and reform momentum have improved capital allocation efficiency over time.

Demographics
With a population of 1.4 billion and nearly half under the age of 25, India possesses the youngest large workforce globally. Rising income levels and rapid middle-class expansion are structurally boosting consumption.

Demand
Domestic demand increasingly dominates India’s growth engine. Strong local capital flows now often outweigh foreign flows, providing resilience during global risk-off cycles.

The New “D” Drivers

Beyond these constants, India is witnessing powerful tailwinds from Digitisation, Development, and Diversification—from digital payments and infrastructure capex to manufacturing under the China+1 theme.

This combination explains why Indian equities have consistently outperformed most global markets across 5-, 10-, and 20-year periods, even through crises .

Investment Objective and Strategy of Phillip Capital GIFT City Fund

The fund’s objective is straightforward: generate superior risk-adjusted returns over the medium to long term by investing in carefully selected Indian listed companies.

Core Strategy Highlights

• Flexi-cap approach across market capitalizations
• Focus on companies with strong governance and clean balance sheets
• Exposure to emerging sectors and turnaround opportunities
• Ability to hold cash tactically during periods of elevated volatility
• Benchmark reference: S&P BSE 500

Rather than chasing short-term momentum, the strategy blends top-down macro understanding with bottom-up stock selection, aiming to capture compounding over full market cycles .

How the Portfolio Is Constructed — Ideas of Today, Trends of Tomorrow

Portfolio construction is designed to balance growth, resilience, and optionality.

The fund typically holds 25–35 stocks, diversified across:

• Manufacturing
• BFSI
• Technology
• Consumption
• Special situations
• China+1 beneficiaries

All-Weather Portfolio Framework

Each holding falls into one of four buckets:

• Consistent compounders with durable moats
• Re-rating candidates temporarily mispriced
• Turnaround stories with improving fundamentals
• Special situations driven by management or structural change

This structure allows participation in India’s growth while managing downside risk through diversification and valuation discipline .

Investment Philosophy: Research-Driven, Noise-Agnostic

At the heart of the strategy lies a clear philosophy: investing is not complex, but discipline is essential.

The fund emphasizes:

• Incisive, ground-level research
• Scuttlebutt-driven insights beyond financial statements
• Quality over valuation traps
• Long-term holding of winners with low portfolio churn
• Immediate exit from broken investment theses

This approach avoids macro noise and focuses on earnings visibility, management quality, and capital efficiency as the primary drivers of alpha .

Stock Selection, Risk Management, and Capital Protection

Risk management is embedded into portfolio construction rather than treated as an afterthought.

Key Risk Controls

• Maximum 10% exposure to a single stock
• Maximum 35% exposure to any one sector
• Minimum liquidity thresholds to ensure exit flexibility
• Continuous monitoring and re-evaluation

The 3Q Framework

• Invest: Strong management, earnings visibility, reasonable valuations
• Nurture: Monitor execution and industry dynamics
• Divest: Exit decisively when fundamentals deteriorate

This framework helps protect capital during market drawdowns while remaining positioned for upside recovery .

Fee Structure Explained — Fixed vs Hybrid

The fund offers investors flexibility through two fee structures, allowing alignment with individual return expectations.

Fixed Fee Structure

• Management fees range from 2.00% to 2.50%, depending on capital invested

Hybrid Fee Structure

• Lower management fee (1.25%–1.50%)
• 10% hurdle rate
• Profit sharing of 15%–20% above hurdle

Additional considerations include:

• Exit load decreasing over time (up to 3% in the first year)
• Setup fees up to 3%
• Operating expenses capped at 0.50%

This transparent structure allows investors to choose between predictable costs or performance-linked alignment .

Fund Structure and Operational Details

Minimum investment: USD 150,000
Top-ups: USD 10,000 multiples
Redemptions: Monthly
Custodian: ICICI Bank
Auditor: EY
RTA: KFintech
Domicile: GIFT City, India

The fund is managed by Phillip Ventures IFSC Pvt Ltd and operates under IFSC AIF regulations, offering offshore investors regulatory clarity and operational efficiency .

Why NRIs & Foreign Investors Prefer the GIFT City Route

GIFT City bridges the gap between global capital and Indian opportunities by offering:

• Simplified onboarding for NRIs and foreign nationals
• IFSC-regulated governance
• Offshore fund structure with India exposure
• Familiar global fund standards

For investors seeking India exposure without onshore friction, the IFSC framework has become the preferred gateway.

Why Choose Philip Capital GIFT City Fund

Backed by PhillipCapital, the strategy benefits from:

• 45+ years of global financial market experience
• Presence across 15 countries
• USD 50+ billion under custody/management
• Deep India-focused research team with local execution

This combination of global pedigree and local insight differentiates the fund from generic offshore India products.

Who Should Invest — And Who Should Not

Ideal for investors who:

• Are NRIs or foreign nationals
• Seek long-term India equity exposure
• Understand public market volatility
• Prefer professional, research-driven management

May not be suitable for investors who:

• Seek capital protection or guaranteed returns
• Have a very short investment horizon
• Are uncomfortable with equity drawdowns

FAQs

Is the Phillip Capital GIFT City Fund only for NRIs?
Yes, the fund is designed exclusively for NRIs and foreign investors.

What is the minimum investment amount?
USD 150,000, with additional top-ups allowed.

Does the fund invest only in large-cap stocks?
No, it follows a flexi-cap strategy across large, mid, and small caps.

How often can investors redeem?
Redemptions are available on a monthly basis.

Is this similar to an Indian mutual fund?
No, it is a Category III AIF with greater flexibility and concentrated positioning.

Are returns guaranteed?
No. Like all equity investments, returns are market-linked and subject to risk.

Conclusion: A Structured Way to Participate in India’s Growth

India’s growth story is no longer a question of if, but how to participate efficiently. The Phillip Capital GIFT City Fund offers NRIs and foreign investors a professionally managed, research-driven, and regulatorily robust pathway to Indian equities.

For investors seeking long-term exposure to one of the world’s fastest-growing major economies—without onshore friction—this strategy represents a thoughtful and structured solution.

Explore your India investment opportunity.
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