From mint · Sheetal Goel · · 1m 50s
GIFT City vs international funds: Returns, minimum investment and tax
Indian investors compare GIFT City funds and international mutual funds for US global exposure.
In brief
Indian investors compare GIFT City funds and international mutual funds for US global exposure. GIFT City funds require higher minimum investments than international mutual funds but offer tax benefits for overseas equities. Originally reported by mint.
Quick answers
- 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.
- What is the key takeaway from GIFT City vs international funds: Returns, minimum investment and tax?
- GIFT City funds require higher minimum investments than international mutual funds but offer tax benefits for overseas equities.
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.
At a glance
GIFT City funds require higher minimum investments than international mutual funds but offer tax benefits for overseas equities.
