# GIFT City vs international funds: Returns, minimum investment and tax

> Indian investors compare GIFT City funds and international mutual funds for US global exposure.
- Title: GIFT City vs international funds: Returns, minimum investment…
- Summary: Indian investors compare GIFT City funds and international mutual funds for US global exposure. GIFT City funds require higher minimum investments than…
- Keywords: gift city funds, international mutual funds, rbi, lrs, s&p 500, nasdaq 100, taxation, minimum investment, mutual funds, returns, news, india
- Source: mint — https://livemint.com/money/personal-finance/gift-city-funds-vs-international-mutual-funds-returns-minimum-investment-and-tax-compared-11792633990713.html
- Author: Sheetal Goel
- Published: 2026-10-22T04:22:24+00:00
- Read time: 1 min
- Topics: gift city funds, international mutual funds, rbi, lrs, s&p 500, nasdaq 100, taxation, minimum investment, mutual funds, returns, news, india
## GIFT City funds vs international mutual funds
With many international mutual funds closed to fresh investments under RBI’s $7 billion overseas cap, GIFT City funds offer Indian investors another route to US and global equities.
## Minimum investment differences
International mutual funds allow investments starting at ₹100 with SIP facilities, while GIFT City schemes require minimum subscriptions of $500 or $5,000.
## Taxation structure
GIFT City funds tax long-term gains at 14.95%, short-term gains at 42.74%, and dividends at 35.88%, while international funds tax gains at investor's income-tax slab rate.
## GIFT City fund performance
Parag Parikh S&P 500 Fund of Fund delivered 18.89% since inception, outperforming its benchmark by 0.81 percentage points.
## Nasdaq 100 fund performance
Parag Parikh Nasdaq 100 Fund of Fund returned 27.95% since inception, slightly ahead of its benchmark by 0.42 percentage points.
## DSP Global Equity Fund
DSP Global Equity Fund delivered 8.49% since inception, underperforming its benchmark by 8.50 percentage points.
## Edelweiss Greater China Fund
Edelweiss Greater China Equity Fund returned 6.47% since inception with a focus on jpmorgan funds in the chinese market.
## Marcellus Global Equities Fund
Marcellus Global Equities Fund reported a -1.27% return since June 25, 2 as an active global equity fund.
## HDFC funds performance
HDFC International Developed Markets and Emerging Markets Equity Funds delivered -1.01% and -0.37% returns since inception.
## International funds still viable?
Nippon India Taiwan Equity Fund recorded 97.94% one-year return but remains closed to fresh investments, while Baroda BNP Paribas Aqua Fund of Fund allows fresh investments with 9.36% returns.
## Key takeaway

GIFT City funds require higher minimum investments than international mutual funds but offer tax benefits for overseas equities.