Bandhan GIFT City Fund IFSC: A Complete Guide to Minimum Investment, Fees, Tax & Time Horizon

Introduction: Why Bandhan GIFT City Fund IFSC Is Gaining Attention

Global investors looking for US dollar access to Indian markets are increasingly searching for Bandhan GIFT City fund IFSC. GIFT City combines India’s investment opportunities with international-style regulation under IFSCA and USD-denominated units, and Bandhan AMC runs funds there.

Bandhan’s IFSC funds are structured as Category III AIFs at GIFT City and invest into proven underlying Indian mutual fund strategies. This gives investors India-focused equity and debt exposure in US dollars.

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
• 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

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 .

Tax for Investors in Bandhan GIFT City Fund IFSC

Under current rules for FY 2026-27, the fund’s offer documents set out how the fund itself is taxed, which is separate from any tax you pay as an investor. If you live abroad, ask a tax professional how your country treats fund units.

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

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

Bandhan’s GIFT City funds invest in India, through Indian mutual fund schemes and government securities, so resident Indians cannot invest in them. NRIs and the other investors listed above can.

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.

Related fund reviews

• Carnelian India Amritkaal Fund
• Phillip Capital Pioneer PMS (GIFT City)
• TIW Capital Mauritius Fund Review

Frequently Asked Questions

What risks does Bandhan GIFT City fund IFSC carry?

The funds are regulated by IFSCA and invest in Indian equity and government bond strategies. Market risk, interest-rate risk and USD-INR currency risk remain.

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.

How long does onboarding take?

Typically 5–7 working days, subject to KYC completion.

What Bandhan GIFT City Fund IFSC Offers

Bandhan’s GIFT City funds give NRIs and other eligible non-resident investors USD-denominated access to Bandhan’s Indian equity mutual fund strategies and Indian government securities, under IFSCA regulation. Returns move with Indian markets and the rupee, and tax depends on the scheme and where you live.