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Global Funds Flock to India's GIFT City for Offshore Access
13 Aug
Summary
- GIFT City offers a convenient route for Indian investors seeking overseas markets.
- Standard Chartered and Jio BlackRock are launching global funds from GIFT City.
- Funds from GIFT City bypass India's outbound investment limits, attracting investors.
Global fund houses are capitalizing on the significant pent-up demand from Indian investors eager to access international markets, with GIFT City emerging as the preferred gateway. Standard Chartered announced it will launch its Signature CIO funds from GIFT City in the coming weeks, aiming to expand its wealth management services.
Jio BlackRock Asset Management, a joint venture between Jio Financial Services and BlackRock, has also secured regulatory approval and is preparing to launch two outbound funds from GIFT City by the end of September. These include a global equity fund and an emerging markets fund.
These initiatives are driven by India's strict capital controls, which impose a $7 billion ceiling on outbound investments that has already been met. Funds operating out of GIFT City are exempt from these limits, providing a crucial avenue for Indian investors to tap into global markets despite domestic equity underperformance and consistent positive inflows into Indian mutual funds.
