PPFAS Gets Nod for 2 New GIFT City-Based Funds: IFSC S&P 500 FoF and Nasdaq 100 FoF

PPFAS Asset Management has received regulatory approval for 2 new passive international funds of funds (FoFs), offering Indian investors access to prominent US equity indices through the GIFT City route. These FoFs come with simplified compliance, low costs, and no exit load, making them attractive options for global portfolio diversification. 

Details on the Newly Approved GIFT City Funds 

PPFAS has launched 2new IFSC-based passive funds, Parag Parikh IFSC S&P 500 FoF and Parag Parikh IFSC Nasdaq 100 FoF. Both schemes invest in UCITS-compliant ETFs and mutual funds tracking the US$ S&P 500 and Nasdaq 100 indices. These FoFs are structured to offer simplified tax compliance and remove inheritance tax implications. 

The funds are denominated in USUS$, with each unit priced at a face value of US$100 and NAV updated daily. Class A (Direct) has a TER of 0.30% while Class B (Regular) charges 0.60%. The minimum initial investment is US$5,000 with top-ups of US$500. 

Eligibility, Benchmarking and Allocation Structure 

The funds are open to Indian resident individuals, corporates, trusts and other eligible entities. Parag Parikh IFSC S&P 500 FoF is benchmarked to the S&P 500 Net TRI, while the Nasdaq variant aligns with Nasdaq 100 Notional Net TRI. Investment allocation will range between 90% to 100% to the respective index ETFs and funds, and up to 10% in debt instruments for liquidity purposes. 

Read More: Axis Mutual Fund Introduces Micro-Investment Feature to Empower New Participants! 

Conclusion 

PPFAS’s new passive FoFs provide a simplified and cost-effective way for Indian investors to gain international exposure via the US$ S&P 500 and Nasdaq 100 indices. With strong regulatory alignment and a favourable fund structure, these offerings support portfolio diversification in a globally compliant manner. 

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.