Mirae Asset Mutual Fund to Expand GIFT City Funds, Launch First Local ETF

Mirae Asset Mutual Fund plans to expand its fund offerings at Gujarat International Finance Tec-City (GIFT City), introducing a local exchange-traded fund (ETF) along with new outbound active global investment products, stated Vaibhav Shah, Head of Business Development – Strategy and International Sales of Mirae Asset. 

These developments mark a stronger focus on providing diversified investment routes for non-resident and resident investors through India's international financial centre. 

Mirae Asset Strengthens Fund Offerings at GIFT City 

Mirae Asset to launch an active outbound global equity alternative investment fund (AIF) and plans to introduce one of the first ETFs listed within the International Financial Services Centre (IFSC). The ETFs and global AIF aim to offer exposure to sectors such as artificial intelligence, semiconductors, defence technology and blockchain.  

The fund house previously launched an inbound AIF from GIFT City in 2024 that invested in Indian markets, attracting nearly 200 NRI investors and managing $40 million in assets. The outbound global allocation AIF, launched in 2025, raised $20 million within 3 months from more than 100 investors. 

Challenges Faced by Investors and Fund Managers 

Despite expansion, operational issues persist. Fund transfers into GIFT City can take 2 to 4 days due to intermediary banking channels. Onboarding processes for investors often extend up to 3 weeks due to semi-digital KYC procedures.  

Unlike global practices where only intermediaries undergo KYC, GIFT City regulations require individual-level KYC from each investor, resulting in higher compliance friction, especially in pooled investment structures. 

Read More: Angel One Nifty 50 ETF: Check Investment Allocations and Objectives! 

Retail Participation and Compliance Barriers 

Mirae Asset clarified there are currently no immediate plans to roll out outbound retail products from GIFT City. Retail investors face difficulties with Liberalised Remittance Scheme (LRS) transfers due to varied documentation practices across banks. Additionally, awareness around accredited investor certification remains low in India.  

Many NRIs are also affected by tax filing obligations, rupee-denominated investment requirements and fund transfer restrictions, with over 95% of their wealth held overseas. 

Conclusion 

Mirae Asset Mutual Fund’s initiatives at GIFT City reflect growing interest in international investment options from India. The new fund structures aim to engage both NRIs and global investors but operational limitations in onboarding and fund flow continue to pose challenges. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.