PPFAS Set to Enter Passive Arena with 2 GIFT City Outbound Funds Launch on February 23

PPFAS Mutual Fund has announced the launch of two new passive outbound funds based in GIFT City. The funds aim to provide Indian investors with direct exposure to the S&P 500 and Nasdaq 100 indices without the need for foreign brokerage accounts. 

Key Features of the Parag Parikh IFSC S&P 500 and Nasdaq 100 Funds 

Both schemes are structured as fund of funds and will invest 90 to 100 % of assets in accumulating ETFs and UCITS that track their respective indices.  

The remaining 0 to 10 % may be allocated to debt securities, money market instruments or similar assets. The face value is US$ 100 and NAV is calculated daily. Purchase and redemption are permitted on all business days. 

Investor Eligibility and Investment Minimums 

The funds are open to Indian resident individuals, corporates, trusts, partnership firms and other eligible investors. There is no lock in period or exit load.  

2 classes of units are offered – class A for direct investors and class B for regular investors. The minimum initial investment for both classes is US$ 5,000, and the minimum top‑up is US$ 500. 

Read More: Mutual Fund AUM Crosses ₹80 Lakh Crore in 10 Years on Strong SIP and Retail Participation! 

Cost Structure and Tax Advantages 

The total expense ratio is the same for both classes, with a slight variation in the maximum TER that includes investee fund costs.  

Advantages highlighted by PPFAS include no inheritance tax implications, simplified tax compliance with tax paid at the fund level, and optimisation of foreign exchange and transaction costs.  

The OPI route is permitted only through a GIFT City pooled vehicle, providing a robust compliance and governance framework. 

Service Providers and Subscription Window 

Kotak Mahindra Bank acts as custodian and banker, while IC RegFin Legal Partners LLP serves as legal advisor. SDKD & Associates LLP is the statutory auditor and Apex Fincore LLP is the fund accountant. The new fund offer opens on February 23, 2026, and closes on March 16, 2026. 

Conclusion 

The 2 passive outbound funds give Indian investors a regulated avenue to access US equity markets via S&P 500 and Nasdaq 100 ETFs, with clear investment minimums, daily NAV, and no lock in period. 

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.