Top Gift City Funds for NRIs in 2026

"I keep hearing about GIFT City mutual funds. But which ones should I actually look at?"

We get this question almost every day in our Belong WhatsApp community.

And it's a fair one. Until mid-2025, GIFT City was mostly a playground for high-net-worth investors parking $150,000 or more in Alternative Investment Funds.

That changed fast.

Between June 2025 and February 2026, four AMCs launched retail mutual funds at GIFT City that NRIs can access for as little as $500.

Each fund serves a different purpose. One gives you Indian midcap exposure. Another lets you own global stocks like Amazon and Tencent.

A third dynamically shifts between large, mid, and small caps. And the fourth opens a door to Greater China's equity markets.

This guide breaks down each fund, who it's built for, what it costs, and how the tax treatment works for NRIs.

No jargon walls.

No vague promises. Just the kind of comparison that helps you decide with confidence.

👉 Tip: You can explore all available GIFT City funds, compare NAVs, and track performance using the GIFT City Mutual Fund explorer on Belong.

Why GIFT City Funds Are Different from Regular Indian Mutual Funds

Before we look at individual funds, a quick clarification on what makes these different from the mutual funds you might already hold through an NRE or NRO account.

Regular Indian mutual funds are SEBI-regulated, rupee-denominated, and come with TDS obligations. Many restrict NRIs from the US and Canada entirely. GIFT City mutual funds operate under a separate regulator, the International Financial Services Centres Authority (IFSCA).

They are denominated in USD or other foreign currencies and come with a distinct tax framework.

Here is a quick snapshot of the structural differences:

Source: IFSCA Fund Management Regulations 2025; GIFT City tax benefits

For NRIs in the UAE or other zero-tax jurisdictions, this structure can mean effectively tax-free returns on qualifying investments.

You pay no Indian tax at the fund level, and your country of residence charges nothing either. That's a powerful combination.

The Four GIFT City Funds Available on Belong Right Now

Let's get into the specifics. These are the four retail mutual funds currently available through Belong's mutual fund platform, each with a distinct strategy and risk profile.

1. Tata India Dynamic Equity Fund – GIFT IFSC

What it does: This is a retail inbound feeder fund that invests in Tata AMC's Indian equity mutual fund schemes and ETFs.

It dynamically allocates between broad-based equity funds (50% to 100% of assets) and sectoral or thematic opportunities (up to 50%) in areas like technology, energy, and healthcare.

Launched: September 2025 (IFSCA approval announced September 16, 2025)

Minimum investment: $500

Why it matters: Before this fund launched, the lowest entry point for a GIFT City mutual fund was $5,000.

The Tata India Dynamic Equity Fund brought that down to $500, opening GIFT City to a far wider pool of NRI investors (Source: Business Standard, Sept 2025).

Who is it for?

This fund suits NRIs who want broad Indian equity exposure without picking between large cap, mid cap, or thematic bets. The fund manager makes those allocation calls for you.

If you're starting out with GIFT City investing and want a single fund that covers India's equity markets dynamically, this is the most accessible entry point.

Tax angle for UAE NRIs: The fund itself is tax-neutral under the IFSC framework. As a UAE-based NRI in a zero-tax jurisdiction, gains are not taxed in India at the fund level and not taxed in the UAE either.

No PAN or Indian income tax return is needed for this investment (Source: Income Tax Act Section 10(4D)).

👉 Tip: The $500 minimum makes this an excellent fund to test GIFT City investing before committing larger amounts. Many NRIs in our community started here before diversifying into other funds.

2. DSP Global Equity Fund – GIFT City

What it does: This fund directly invests in 30 to 50 global companies across the US, Europe, Japan, South Korea, China, and Canada. It is not a feeder fund. Your money goes straight into global equities, not into another intermediary fund.

Think companies like Amazon, Tencent, Booking Holdings, Brookfield, and BYD.

Launched: June 2025 (India's first retail offshore mutual fund from GIFT City)

Minimum investment: $5,000

Why it matters: The DSP Global Equity Fund was the first open-ended retail mutual fund launched under GIFT City's updated 2025 framework.

It gave NRIs a way to own global stocks through an India-regulated structure, without the SEBI overseas investment cap that restricts domestic mutual funds (Source: DSP Fund Managers IFSC).

As of late 2025, the fund's AUM crossed $5 million, with Amazon as the largest holding at 6.4% allocation. The top 10 holdings accounted for 38.4% of the portfolio (Source: Angel One, Nov 2025).

Who is it for?

NRIs who already have Indian equity exposure through mutual funds or fixed deposits and now want global diversification.

This fund targets large, high-quality companies with market caps above $30 billion. It follows a high-conviction, bottom-up research approach.

If you earn in AED and invest in rupee assets, your entire portfolio carries India risk. This fund provides geographic diversification without leaving the GIFT City ecosystem.

Expense ratio: 1.50% per annum for the direct plan. No performance fee. There is a 1% exit load if you redeem within 12 months.

What most blogs miss: Global equities (tracked by the MSCI ACWI) have delivered roughly 10% annualized USD returns over the past 20 years, matching India's equity performance but with lower volatility (Source: DSP GIFT City product page).

For NRIs already heavy on India, this is not about chasing higher returns. It's about smoother returns.

👉 Tip: If you're comparing this with offshore mutual funds routed through Singapore or Mauritius, the GIFT City structure offers similar global access with Indian regulatory oversight and simpler compliance.

3. Sundaram India Mid Cap Fund – GIFT

What it does: A USD-denominated offshore feeder fund that channels virtually all its assets into the Sundaram Mid Cap Fund, a SEBI-registered domestic scheme with a 23-year track record.

The portfolio focuses on scalable Indian midcap companies across industrial products, banking, financial services, healthcare, and auto components.

Launched: February 2026 (subscription opened February 16, 2026)

Minimum investment: $5,000

Why it matters: The Sundaram India Mid Cap Fund – GIFT is the newest entrant. Sundaram AMC manages over ₹86,245 crore in assets as of January 2026 and has been a pioneer in the mid and small cap space in India (Source: Cafemutual, Feb 2026).

The underlying fund has delivered over 5.3x growth in 13 years under its direct plan.

The Sundaram Mid Cap Fund's AUM stands at ₹12,917 crore as of February 2026.

Its portfolio is diversified across Financial Services (20.4%), Consumer Cyclical (19%), and Industrials (15.1%) (Source: Angel One, Feb 2026).

Who is it for?

NRIs who believe in India's midcap growth story and want dedicated exposure to that segment.

Indian midcaps (companies ranked 101st to 250th by market capitalisation) tend to benefit most from domestic demand, infrastructure spending, and manufacturing growth.

This is a higher-risk, higher-reward play compared to the Tata fund's balanced approach.

If your time horizon is 5 years or more and you can tolerate volatility, midcap exposure through a proven fund house makes sense.

One edge case to know: The Nifty Midcap 100 index trades at a P/E ratio of around 32.55 as of early 2026. That's a premium valuation. Midcaps can correct sharply in market downturns.

This fund is best suited for investors who won't panic during a 15% to 20% drawdown.

👉 Tip: Track how Indian midcaps are performing in real time using the GIFT Nifty tracker on Belong. It gives you over 20 hours of daily market data.

4. Edelweiss Greater China Equity Fund – GIFT City

What it does: A feeder fund that invests in the JPMorgan Funds – Greater China Fund, a Luxembourg-based SICAV with $1.86 billion in AUM and a track record dating back to 2001.

It provides exposure to companies across Mainland China, Hong Kong, and Taiwan.

Launched: December 2025

Minimum investment: $5,000

Why it matters: The Edelweiss Greater China Equity Fund is the only GIFT City fund that gives NRIs pure exposure to Asian markets outside India.

The underlying JPMorgan strategy has a high-conviction approach, focusing on growth companies in the Greater China region across sectors like technology, consumer, and financials.

Radhika Gupta, CEO of Edelweiss Mutual Fund, confirmed that this fund feeds into the same underlying portfolio as the existing Edelweiss Greater China Fund (domestic), ensuring continuity in investment strategy (Source: BusinessToday, Dec 2025).

The domestic version of this fund, the Edelweiss Greater China Equity Offshore Fund, has delivered average annual returns of 38.41% since inception (January 2013) as of December 2025 (Source: Edelweiss MF).

Who is it for?

NRIs looking for international diversification beyond India and the West.

China's equity markets had a strong recovery through parts of 2024-2025, and Greater China remains a massive economy with deep technology, semiconductor, and consumer sectors.

This fund is also useful for NRIs who already hold Indian equities and US stocks but have no Asian market exposure.

Expense ratio: 0.50% per annum for the direct plan, 1.50% for the regular plan. These are the fund-level charges and exclude the underlying JPMorgan fund's fees.

Exit load of 1% if redeemed before 25 months.

A caution: US and Canada-based NRIs cannot invest in this fund due to FATCA compliance requirements. For NRIs in the UAE, UK, Singapore, and most other jurisdictions, the fund is fully accessible.

👉 Tip: Check if you're eligible to invest in GIFT City funds based on your residency status. Our guide on who can invest in GIFT City mutual funds covers every scenario.

How These Four Funds Compare at a Glance

Sources: Fund offer documents from Tata AMC, DSP Fund Managers IFSC, Sundaram AMC, and Edelweiss AMC; compiled as of February 2026.

A Practical Framework: Which Fund Fits Your Situation?

Choosing between these funds is not about picking the "best" one. It's about matching a fund to your specific financial situation. Here is how we think about it at Belong:

If you're new to GIFT City and want to start small: The Tata India Dynamic Equity Fund at $500 is the easiest entry. It gives you diversified Indian equity exposure with professional allocation between market caps and sectors.

If you already have Indian investments and want geographic diversification: The DSP Global Equity Fund lets you own global companies in USD. This reduces your concentration risk on India and INR.

If you want focused exposure to India's high-growth midcap segment: The Sundaram India Mid Cap Fund gives you access to a 23-year-old strategy through a USD-denominated wrapper. Suitable for a 5-year-plus horizon.

If you want exposure to Asian markets outside India: The Edelweiss Greater China Equity Fund provides access to China, Hong Kong, and Taiwan equities through a globally respected JPMorgan strategy.

If you want to build a complete GIFT City portfolio: You could combine the Tata fund (India broad equity), the DSP fund (global), and the Edelweiss fund (Asia ex-India) for a diversified portfolio across geographies, all within one tax-efficient structure.

👉 Tip: If you also want safe, fixed-return instruments alongside equity funds, compare GIFT City USD fixed deposits with these funds. Many NRIs in our community allocate a portion to FDs and a portion to mutual funds based on their risk appetite.

Tax Treatment: What UAE NRIs Should Know

Tax efficiency is the biggest draw of GIFT City for NRIs in zero-tax jurisdictions like the UAE. Here is how it works across these funds:

At the fund level: GIFT City funds are exempt from Securities Transaction Tax (STT), Commodities Transaction Tax (CTT), and GST on offshore services. There is no TDS on redemptions or distributions at the fund level (Source: IFSCA).

In India: For NRIs, gains from Category III AIFs investing in Indian equity mutual funds through GIFT City are fully exempt from capital gains tax in India under Section 10(4D) of the Income Tax Act.

In the UAE: The UAE has no personal income tax. For UAE-based NRIs, GIFT City fund returns are effectively zero-taxed on both ends.

For UK NRIs: You will owe UK capital gains tax on repatriated gains. But you avoid Indian TDS and double taxation since the DTAA between India and the UK prevents being taxed in both jurisdictions.

For US NRIs: This is where it gets complicated. Most GIFT City mutual funds classify as Passive Foreign Investment Companies (PFICs) under US tax law. This triggers punitive tax treatment unless you file specific elections. Always consult a cross-border tax specialist if you are US-based.

How to Invest in These Funds Through Belong

The process is straightforward:

Step 1: Download the Belong app and complete your digital KYC. You need a government-issued ID and proof of overseas address.

Step 2: Browse available GIFT City mutual funds using the fund explorer tool. Compare NAVs, strategies, and minimum investments.

Step 3: Choose your fund and invest in USD. Your investment is processed through an IFSCA-regulated banking unit.

Step 4: Track your investment, check NAV updates, and redeem when needed, all from within the app.

No separate bank account opening. No complex paperwork. No visiting a physical branch.

Key Takeaway

GIFT City mutual funds have matured from an idea into a real, accessible investment avenue for NRIs.

Whether you start with $500 in the Tata Dynamic Equity Fund or diversify globally through DSP and Edelweiss, the options in 2026 are meaningfully better than they were even a year ago.

The right choice depends on your existing portfolio, your risk tolerance, your tax jurisdiction, and your time horizon.

The four funds profiled here cover Indian equities (broad and midcap), global equities, and Asian markets, giving you the building blocks for a complete GIFT City investment strategy.

Many NRIs in Belong's WhatsApp community are actively discussing their GIFT City fund strategies, sharing experiences, and getting answers from fellow investors.

If you want to learn alongside others who are navigating the same decisions, join the conversation. And if you want to start investing, the Belong app makes it possible in minutes.