HNIs in GIFT City with Global Investment Opportunities
03 July, 2023
An emerging global financial services and IT Hub, GIFT City (Gujarat International Finance Tec-City) is an initiative conceptualised by Prime Minister Narendra Modi. In order to facilitate the delivery of a wide range of financial services globally, GIFT City has been approved by the Government of India (GOI) as a multi-services Special Economic Zone (GIFT SEZ). The zone is notified as the first International Financial Services Centre (IFSC) in India. GIFT IFSC presents various investment products for residents and non-resident Indians in all currencies besides the Indian Rupee. Read ahead to discover the various global opportunities for investment in GIFT City.
Investment Opportunities in GIFT City for HNIs
As a high-net-worth individual, you can achieve your goals of growing wealth by making investments in GIFT City through the following financial services:
Trading in Securities
Per the Reserve Bank of India (RBI) guidelines dated February 16, 2021, high-net-worth individuals can invest in various financial instruments in GIFT IFSC, including Equities, Mutual Funds, Exchange Traded Funds, Index Funds, Currencies, Commodities, and Bonds (Indian and Global). If you are a resident individual, you can make a remittance under the Liberalised Remittance Scheme since GIFT IFSC investments are only possible in foreign currencies. Besides, GIFT IFSC also partners with Unapproved Depository Receipts (UDR) and lets you open Demat Accounts to invest in the top 50 US shares.
Alternate Investment Fund (AIF)
GIFT IFSC facilitates investment in a privately pooled investment vehicle known as AIF, that collects funds from HNIs, both Indian and foreign residents. The different categories of AIF investment opportunities for HNIs in GIFT City are with startups, early-stage ventures, social ventures, SMEs, and Infrastructure. You can also explore AIFs in private equity, venture capital, and hedge investment schemes. The minimum corpus required for each scheme of AIF is $3,000,000, and for angel funds, the requirement is $750,000.
If you have specific investment goals in mind and want to construct an effective investment portfolio, structured products are available as an option for investment in GIFT City. You can pre-package the market-linked assets or derivatives with structured products. The customised structure can include inflation-linked instruments, equities and indices, fixed coupon notes, and so on. As a result, you can utilise various underlying assets to grow your investment.
As a Gift City IFSC Banking Unit (IBU), HDFC Bank offers rupee non-deliverable forwards and options. You can hedge these derivatives to earn market-linked returns. You can also access cross-currency and interest rate hedge solutions that help you mitigate your risks. This way, you can explore derivative products at GIFT IFSC with asset management, investment advisory, fund accounting, wealth management, and trustee services.
Gift City’s offshore term deposits are convenient investment opportunities for NRIs. Opening an Offshore Account at GIFT IBU as an NRI or foreign national lets you earn returns based on the competitive interest rates in the market. You can make offshore deposits in four major currencies, namely United States Dollar, Euro, Great Britain Pound, and Australian Dollar. The tenure on the Offshore Account ranges from one month to five years.
Grow Your Net Worth with Investment in GIFT City with HDFC Bank
As you explore these investment opportunities in GIFT City, you can benefit from a wealth of services that can assist you in the wealth building process. Some of the notable services include compliance and secretarial services, trusteeship services, legal and taxation services, portfolio management services, depository and custodian services, and more. You can leverage these solutions along with the various investment avenues to grow your corpus.
For more details, click here to get started!
Read more about the overview of GIFT City here.
The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. You are recommended to obtain specific professional advice from before you take any/refrain from any action. Investments are subject to changes in tax laws. Please contact a professional consultant for an exact calculation of your liabilities