GIFT City: India's Global Financial Gateway Explore how GIFT City, India's first operational International Financial Service Centre (IFSC), bridges outbound and inbound investments, serving both domestic and international clients with services in foreign currencies. Table of contents About GIFT City Illustrative Fund Structure: Inbound Investments Illustrative Fund Structure: Outbound Investments Benefits of Investing in IFSC-GIFT City GIFT City vs. Traditional Mutual Funds (Part 1) GIFT City vs. Traditional Mutual Funds (Part 2) Unmatched Tax Advantages Product Universe Available via GIFT City Platforms Available for GIFT City Why PFPs Must Include GIFT City Sacred Investments: Temples Enter India's Financial Markets Key Highlights of the Maharashtra Investment Reform Potential Market Impact: A New Wave of Capital Why This Matters: A Cultural and Economic Shift The Takeaway: Trust in India's Growing Markets Contact Us About GIFT City India's First IFSC GIFT City stands as India's premier operational International Financial Services Centre, pioneering a new era in global finance. IFSCA Regulated Governed by the International Financial Services Centres Authority (IFSCA), ensuring robust and transparent operations. Investment Bridge It serves as a crucial conduit, facilitating both outbound investments from India and inbound capital flow into the nation. Global Clientele Catering to a diverse array of clients, from domestic investors to international corporations seeking global financial services. Multi-Currency Services All financial transactions and services within GIFT City are exclusively offered in foreign currencies, streamlining international trade. Expansive Product Universe Enabling a wide range of financial activities including overseas bond issuance, USD-INR trading, and foreign capital inflow. Illustrative Fund Structure: Inbound Investments Returns To Investors SEBI-Registered Manager GIFT IFSC Fund Invests NRIs Pool Money This structure allows Non-Resident Indians (NRIs) to invest in Indian equities and startups through a SEBI-registered Investment Manager, with returns repatriated back to investors. Illustrative Fund Structure: Outbound Investments Returns Repatriated Managed Fund Invest Offshore Pool Funds Resident Indians can pool money into a GIFT IFSC-based feeder fund to invest in international equities, ETFs, and bonds, managed by an IFSCA- registered Investment Manager, with foreign currency returns repatriated in INR/USD. Benefits of Investing in IFSC-GIFT City For Resident Indian Investors Access Global Investments Outbound Diversification Tax Efficiency Exclusive Products 100% Repatriability For Non-Resident Investors No PAN Required No Aadhaar Required No Indian Bank Account Needed Invest in India Invest in Global Currency GIFT City vs. Traditional Mutual Funds (Part 1) Feature Domestic Mutual Funds GIFT City Investments (IFSC) Jurisdiction India (regulated by SEBI) IFSC under IFSCA (single regulator) Currency INR only USD, EUR, GBP, etc. Investor Eligibility Indian residents, NRIs NRIs, OCIs, FPIs, QUSPs, eligible residents Minimum Investment ₹500–₹5,000 (SIP); ₹5,000+ (lump sum) $150,000+ (PMS/AIF); $10,000+ (feeder funds) Asset Universe Indian equities, debt, hybrids Global equities, bonds, ETFs, PMS, AIFs, REITs Taxation STT, GST, LTCG/STCG as per slab No STT/GST; Tax-neutral for NRIs, concess Compliance Burden SEBI + RBI + FEMA Simplified IFSCA compliance GIFT City vs. Traditional Mutual Funds (Part 2) Feature Domestic Mutual Funds GIFT City Investments (IFSC) Liquidity High (daily NAV, easy redemption) Depends on product (e.g., PMS may have lock-in) Global Diversification Limited via LRS route Direct access to global markets Currency Risk Managed by fund manager Choose hedged/unhedged share classes NRI Tax Filing PAN & ITR required Not required for certain non-residents Inheritance Tax Exposure Possible via LRS route Avoidable via pooled IFSC structures Product Innovation Traditional MF schemes Feeder funds, ESG, structured credit Repatriation Subject to RBI norms 100% repatriable principal & returns Unmatched Tax Advantages Tax-Free Interest Interest from IFSC deposits is tax- free. Tax-Exempt Gains Gains from listed securities are not taxed. Derivative Income Exempt Income from derivatives is exempt. No Transaction Duties No GST, STT, or stamp duty on transactions. Tax-Free NRI Income Fund manager-managed income for NRIs is tax-free (if sourced outside India). Product Universe Available via GIFT City Global Equities & Bonds Foreign Currency Equities, Bonds, ETFs. PMS & AIFs PMS & AIFs with global diversification. Offshore Banking Offshore banking and term deposits. Indian REITs Access to Indian REITs for real estate exposure. Derivatives & Credit Derivatives & structured credit instruments. Platforms Available for GIFT City Why PFPs Must Include GIFT City Rupee Fluctuation Impact Depreciation (INR Weakens): Clients gain from USD- denominated investments, acting as a natural hedge. Appreciation (INR Strengthens): May reduce repatriated returns; GIFT City avoids unnecessary conversions. Example: USD-INR from ₹83 to ₹86 = 3.6% currency gain. Strategic Advantages Position as Global Advisors. Attract HNIs/NRIs seeking global solutions. Offer global diversification. Enable NRIs to invest in India-focused funds. High-growth, high-reward space. No new exams for NISM-certified MFDs. Unified IFSCA Regulation. Exclusive Products. Build Client Loyalty. Early Mover Advantage. Sacred Investments: Temples Enter India's Financial Markets The Maharashtra government has approved a landmark reform, allowing nearly 60,000 public trusts, including revered temples (Including Siddhivinayak, Shirdi) educational institutions, and charitable organizations, to invest up to 50% of their funds in market instruments like mutual funds, ETFs, bonds, and equities. This move marks a significant shift in investment strategy for these institutions. Key Highlights of the Maharashtra Investment Reform 1 Broader Investment Scope Previously, most trusts were restricted to low-yield instruments like fixed deposits (FDs), offering around 6% returns. The new policy diversifies their investment options significantly. 2 Shift Towards Growth This reform encourages a strategic transition from mere capital preservation to more dynamic, growth-oriented wealth creation strategies within a regulated framework. 3 Notable Participants Prominent trusts such as the Shirdi Sai Baba Temple and Siddhivinayak Temple are now eligible to participate, bringing substantial funds into market instruments. Potential Market Impact: A New Wave of Capital Unlocking Capital: The reform could inject an estimated ₹5,000–10,000 crore into Indian financial markets, significantly boosting liquidity. This influx of funds is expected to deepen market participation and provide a fresh impetus to various market instruments, contributing to overall economic growth and stability. Why This Matters: A Cultural and Economic Shift Cultural Shift in Investing Temples, traditionally symbols of safety and preservation, adopting market instruments reflects growing trust in India’s dynamic capital markets. Validation of Mutual Funds If even centuries-old religious institutions are open to Systematic Investment Plans (SIPs), it reinforces confidence in mutual funds as reliable, long-term vehicles for wealth creation for all. Strengthening Capital Markets India’s Mutual Fund AUM has soared from ₹25.5 trillion (2020) to an anticipated ₹74.4 trillion (2025). Despite challenges like FII outflows, domestic investor participation ensures market resilience. The Takeaway: Trust in India's Growing Markets This isn’t just a policy change; it’s a powerful signal of an evolving financial culture in India. The fact that revered institutions are ready to participate in equity and mutual funds highlights the trust and maturity of Indian capital markets. If temples, with their long-term vision, trust SIPs for the future, perhaps it’s time you considered them too for your investment portfolio. Contact Us + (91) 93979 - 98765 www.wealthmunshi.com contact@wealthmunshi.com Address: 4th floor, C9MH+GG9 T Hub, 2.0, Silpa Gram Craft Village, HITEC City, Hyderabad, Telangana 500032