Mirae Asset GIFT City Fund for NRIs: Complete Guide to India Equity Allocation Strategy in 2026
Introduction: Why NRIs Are Looking at the Mirae Asset GIFT City Fund for NRIs
For non-resident Indians (NRIs) and foreign investors, investing in India has always been attractive—but operationally complex. Currency conversion, tax uncertainty, regulatory friction, and account structures often diluted the experience. The Mirae Asset GIFT City Fund for NRIs attempts to solve exactly this problem.
Launched from India’s International Financial Services Centre (IFSC) at GIFT City, this strategy allows overseas investors to access India’s long-term equity growth in USD terms, through a professionally managed fund-of-funds (FoF) structure, without opening domestic Indian brokerage or mutual fund accounts.
This article provides a practical, investor-first breakdown of the strategy—covering the investment thesis, structure, fees, exit rules, taxation considerations, and risks, along with what NRIs and foreign entities should carefully evaluate before allocating capital.
Mirae Asset GIFT City Fund for NRIs: Strategy Overview
The product is officially known as the Mirae Asset India Equity Allocation Fund, domiciled in IFSC GIFT City, and structured as an open-ended Category III AIF (Restricted Scheme – Non-Retail) under IFSCA regulations .
Key Characteristics at a Glance
| Feature | Details |
|---|---|
| Fund Type | Category III AIF (Restricted, Non-Retail) |
| Structure | Fund of Funds (FoF) |
| Base Currency | USD |
| Minimum Investment | USD 150,000 |
| Target Investors | NRIs, Foreign Individuals, Corporates, Family Offices |
| Investment Universe | Indian equity mutual funds & ETFs |
| Domicile | IFSC GIFT City, India |
| Fund Manager | Mirae Asset Investment Managers (India) – IFSC Branch |
The Mirae Asset GIFT City Fund for NRIs is designed as an inbound product, meaning offshore capital flows into India via IFSC under globally benchmarked regulations.
Investment Thesis: Why This Strategy Exists
India’s Structural Growth Story
The fund’s core thesis rests on India’s multi-decade growth drivers:
- Sustained GDP growth expected to average ~6–6.5% annually
- Young demographics and rising middle class consumption
- Manufacturing push via PLI, China+1, defense, EVs, electronics
- Formalization of the economy and financialization of savings
These themes are explicitly highlighted in the fund’s positioning material .
Why a Fund-of-Funds Approach?
Instead of buying stocks directly, the strategy invests 90–100% of assets into select Indian equity mutual funds and ETFs managed by Mirae Asset. This approach offers:
- Professional fund selection across market caps and themes
- Lower single-stock risk for foreign investors
- Operational simplicity for NRIs unfamiliar with Indian markets
- Dynamic allocation based on valuation, momentum, and macro signals
This structure is particularly suitable for NRIs who want India exposure without active monitoring or operational complexity.
Fund-of-Funds Structure Explained (Simple but Powerful)
The Mirae Asset GIFT City Fund for NRIs follows a three-layer structure :
- Global Investors (NRIs / Foreign Entities)
Capital contributed in USD into the IFSC fund. - Mirae Asset India Equity Allocation Fund (IFSC Vehicle)
Managed by Mirae Asset’s IFSC-registered Fund Management Entity. - Underlying Indian Mutual Funds & ETFs
Investments made into Mirae Asset’s domestic schemes.
Underlying Allocation Framework
| Allocation Bucket | Range |
|---|---|
| Market-Cap Based Funds | 70% – 100% |
| Thematic Funds | 0% – 30% |
| Cash & Liquids | Up to 10% |
The manager dynamically allocates between large-cap, mid-cap, small-cap, and themes like manufacturing and consumption, depending on valuation and momentum signals .
How the Investment Strategy Works in Practice
Market-Cap Allocation Logic
- Large Caps: Stability, governance, earnings visibility
- Mid Caps: Growth with improving balance sheets
- Small Caps: Selective exposure via rules-based ETFs
The fund uses valuation metrics like 12-month forward P/E ratios vs historical averages, along with 3-month and 12-month momentum scores, to tilt exposure .
Thematic Exposure (Opportunistic)
Themes may include:
- Manufacturing & PLI beneficiaries
- Consumption & discretionary spending
- Financialization & formal economy plays
Thematic exposure is capped at ~30%, ensuring the portfolio does not become overly concentrated.
Fees, Expenses, and Exit Load: What NRIs Must Know
Management Fees
As a Category III AIF under IFSC, the fund typically charges:
- Management Fee: Usually 1.0% – 1.5% per annum (exact rate defined in PPM)
- Underlying Fund Expenses: Expense ratios of Indian mutual funds/ETFs apply indirectly
This layered cost is important to evaluate versus direct equity investing.
Exit Load & Liquidity
- The fund is open-ended, allowing periodic subscriptions and redemptions
- Exit load, if any, is specified in the Placement Memorandum (PPM)
- Liquidity depends on underlying mutual fund liquidity, which is generally strong for Indian equity funds
NRIs should treat this as a medium-to-long-term allocation, not a short-term trading vehicle.
Taxation Perspective for NRIs & Foreign Investors
One of the biggest attractions of the Mirae Asset GIFT City Fund for NRIs is tax efficiency, though final taxation depends on investor jurisdiction.
Key High-Level Points
- The fund is domiciled in IFSC, not mainland India
- Investments are made in USD
- No Indian capital gains tax at the fund level in many structures
- Investor-level taxation depends on home country tax laws and DTAA
⚠️ Important: Tax treatment varies by country. NRIs should consult an international tax advisor before investing.
Who Can and Cannot Invest?
Eligible Investors
- NRIs (except restricted jurisdictions)
- Foreign individuals
- Foreign corporates
- Family offices
- Institutional and accredited investors
Not Eligible
- Resident Indians
- NRIs from FATF blacklisted or grey-listed countries
- Investors from the US and Canada (as per current fund guidelines)
Key Risks Every NRI Should Evaluate
No strategy is risk-free. Key risks include:
- Equity Market Risk: Indian equities can be volatile
- Currency Risk: Although base currency is USD, underlying assets are INR
- Manager Allocation Risk: Performance depends on allocation decisions
- Regulatory Risk: IFSC regulations may evolve over time
This fund suits investors with a long-term horizon and moderate-to-high risk tolerance.
Mirae Asset’s Credibility and IFSC Advantage
Mirae Asset brings:
- Global AUM of over USD 500 billion
- Strong India mutual fund franchise
- Dedicated IFSC team with compliance, dealing, and operations
GIFT City adds:
- Unified regulator (IFSCA)
- Globally benchmarked tax regime
- Offshore-like convenience with India growth exposure
Frequently Asked Questions (FAQs)
Is the Mirae Asset GIFT City Fund for NRIs a mutual fund?
No. It is a Category III AIF (Restricted Scheme) investing into Indian mutual funds.
What is the minimum investment?
USD 150,000 or higher, depending on investor category.
Can I invest as an NRI without an NRE/NRO account?
Yes. Investments are made offshore into the IFSC vehicle.
Is this fund suitable for short-term investment?
No. It is designed for long-term capital appreciation.
Are returns guaranteed?
No. Returns depend on Indian equity market performance.
How is this different from buying Indian mutual funds directly?
It offers USD denomination, IFSC tax efficiency, simplified compliance, and professional allocation, especially useful for NRIs and foreign entities.
Conclusion: Is the Mirae Asset GIFT City Fund for NRIs Worth Considering?
For NRIs and foreign investors seeking structured, compliant, and professionally managed exposure to Indian equities, the Mirae Asset GIFT City Fund for NRIs stands out as a compelling option.
It combines:
- India’s long-term growth story
- Mirae Asset’s institutional fund management expertise
- IFSC GIFT City’s global financial architecture
While it may not replace direct investing for sophisticated investors, it is highly relevant for NRIs, family offices, and overseas entities looking for simplicity, diversification, and governance in their India allocation.
