Bandhan GIFT City Fund IFSC: A Complete Guide to Minimum Investment, Fees, Tax Benefits & Time Horizon
Introduction: Why Bandhan GIFT City Fund IFSC Is Gaining Attention
Global investors looking for tax-efficient access to India’s growth story are increasingly searching for Bandhan GIFT City fund IFSC. The reason is simple: GIFT City combines India’s investment opportunities with international-style regulations, zero tax structures, and offshore flexibility—and Bandhan AMC is one of the most established asset managers operating in this space.
Bandhan’s IFSC funds are structured as Category III AIFs at GIFT City and invest into proven underlying Indian mutual fund strategies. This allows investors to benefit from India-focused equity and debt exposure, while enjoying significant tax and cost advantages unavailable in mainland India.
This guide explains everything clearly—how the Bandhan GIFT City fund IFSC works, who can invest, minimum investment thresholds, fees, exit loads, taxation, and ideal time horizon—so you can make an informed decision.
What Is Bandhan GIFT City Fund IFSC?
The Bandhan GIFT City fund IFSC refers to a set of offshore Alternative Investment Funds (AIFs) launched by Bandhan AMC through its IFSC branch at GIFT City, Gujarat.
Understanding the IFSC Structure
GIFT City (Gujarat International Finance Tec-City) is India’s first International Financial Services Centre (IFSC). Units registered here are treated as non-resident entities under Indian exchange control regulations and are governed by the International Financial Services Centres Authority (IFSCA).
This structure allows Bandhan AMC to:
- Offer USD-denominated investment options
- Provide zero capital gains tax at the fund level
- Eliminate STT, GST, and stamp duty
- Operate under globally aligned regulatory norms
Bandhan’s GIFT City funds invest into well-established Indian mutual fund schemes, effectively offering a fund-of-funds structure that is transparent and cost-efficient .
Bandhan GIFT City Fund IFSC – Available Fund Options
Bandhan AMC currently offers three primary GIFT City AIF strategies, each mapped to a strong underlying domestic fund.
Equity Funds
Bandhan India Large and Mid-Cap Fund (IFSC)
- Invests in Bandhan Large & Mid Cap Fund
- Focus on quality growth, thematic and cyclical opportunities
- Diversified exposure across large and mid-cap stocks
- Long-term capital appreciation objective
Bandhan India Small Cap Fund (IFSC)
- Invests in Bandhan Small Cap Fund
- GARP (Growth at Reasonable Price) strategy
- High active share and diversification
- Designed for investors with higher risk appetite and longer horizon
Fixed Income Fund
Bandhan India Government Securities Fund (IFSC)
- Invests in Indian government securities
- Actively managed duration strategy
- Lower credit risk, suitable for conservative allocations
- Positioned as a satellite fixed-income allocation
Each of these funds is structured as a non-retail Category III AIF under IFSCA regulations .
Minimum Investment in Bandhan GIFT City Fund IFSC
One of the most searched questions around Bandhan GIFT City fund IFSC is the minimum investment requirement.
Minimum Capital Commitment
| Investor Category | Minimum Investment |
|---|---|
| Standard Investors | USD 150,000 |
| Accredited Investors | USD 50,000 |
| Higher Share Classes | USD 500,000 to USD 1,000,000+ |
The lower threshold for accredited investors makes these funds accessible to qualified global investors and family offices while maintaining regulatory discipline .
Fees and Expenses: What Does Bandhan GIFT City Fund IFSC Cost?
Understanding fees is crucial, especially for long-term investors.
Management Fees (Equity Funds)
- USD 150k – 500k: ~1.50% per annum
- USD 500k – 1m: ~1.10% per annum
- USD 1m+: ~0.90% per annum
- Accredited Investors: ~1.50%
Management Fees (Government Securities Fund)
- Range from 0.10% to 0.30%, depending on share class
Other Expenses
- Operating expenses: Capped (generally up to 0.30% for equity, lower for debt)
- Underlying fund expense ratio: Passed through at actuals
- No hidden performance fees
This fund-of-funds structure is often more cost-effective than setting up offshore PMS or direct FPI routes .
Exit Load, Liquidity & Lock-In Period
Lock-In
- No mandatory lock-in
Exit Load (Indicative)
Equity Funds
- Exit within 12 months: 1%–3%
- Exit after 36 months: Nil
Government Securities Fund
- Exit within 12 months: Very low (0.10%–0.50%)
- Exit after 36 months: Nil
This flexible structure allows investors to align liquidity with portfolio needs without long lock-ins common in traditional AIFs .
Taxation: The Biggest Advantage of Bandhan GIFT City Fund IFSC
Tax efficiency is the single most powerful reason investors explore Bandhan GIFT City funds.
Tax at GIFT City AIF Level
- Capital gains tax: 0%
- STT / CTT: 0%
- GST: 0%
- Stamp duty: 0%
Comparison with Mainland India
| Investment Route | Capital Gains Tax |
|---|---|
| GIFT City AIF (MF investments) | 0% |
| Offshore FPI – Indian equities | 12.5%–20%+ |
| Offshore debt investments | Up to 35%+ |
This makes Bandhan GIFT City fund IFSC one of the most tax-efficient ways to invest in India for foreign investors and NRIs .
Ideal Time Horizon for Bandhan GIFT City Fund IFSC
Equity Funds
- Recommended horizon: 5–7 years or more
- Suitable for investors seeking long-term wealth creation from India’s economic growth
Government Securities Fund
- Recommended horizon: 3+ years
- Suitable for capital preservation with moderate returns
Given India’s multi-decadal growth trajectory, these funds are best suited for patient capital, not short-term trading.
Who Can Invest in Bandhan GIFT City Fund IFSC?
Eligible investors include:
- Non-Resident Indians (NRIs)
- Foreign nationals
- Global institutions
- Family offices
- Corporates and government institutions
These funds are not available to resident Indian retail investors, ensuring regulatory clarity and compliance .
Why Choose Bandhan AMC for GIFT City Investments?
Bandhan AMC brings:
- Over 25 years of asset management experience
- Strong institutional shareholders
- Proven performance of underlying funds
- Experienced investment teams across equity and debt
- Transparent, regulator-led offshore structure
This combination enhances trust, governance, and long-term consistency—key factors for global investors.
Frequently Asked Questions
Is Bandhan GIFT City fund IFSC safe?
These funds are regulated by IFSCA and invest in diversified, well-rated Indian mutual fund strategies, though market risk remains.
Can NRIs invest in Bandhan GIFT City fund IFSC?
Yes, NRIs and foreign nationals are eligible investors.
Is currency risk involved?
Yes. Investments are USD-denominated, so INR-USD movements can impact returns.
Are returns guaranteed?
No. Returns depend on market performance and fund strategy.
Is it better than investing via FPI?
For many investors, the tax efficiency and simplicity make it more attractive than direct FPI routes.
How long does onboarding take?
Typically 5–7 working days, subject to KYC completion.
Conclusion: Is Bandhan GIFT City Fund IFSC Worth Considering?
The Bandhan GIFT City fund IFSC stands out as a tax-efficient, globally compliant, and professionally managed gateway to India’s growth markets. With transparent fees, flexible liquidity, strong governance, and zero capital gains tax at the fund level, it offers a compelling proposition for NRIs, family offices, and global investors seeking long-term exposure to India.
For investors with the right eligibility, risk appetite, and time horizon, this structure represents a smart, future-ready way to invest in India.
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