DSP Global Equity Fund: Should you invest in this retail offshore MF from GIFT City?
Last Update Date: 05-10-2026
Published by freefincal
Abhishek Kumar's role: Wrote this article
Abhishek Kumar wrote this guest article for freefincal, explaining how GIFT City funds give resident investors another route to global equities and suggesting such funds be weighed within a goal-based plan rather than chosen in haste.
What Abhishek Kumar said
Why should an Indian investor look at global equities at all?
Because India is one street in a large city. Indian companies account for only a small slice — a few per cent — of all the equity listed around the world, so keeping every rupee at home ignores most of what is out there. Markets in different countries move to different rhythms — central-bank policy in one place, factory output or consumer demand in another — so adding lowly correlated markets reduces the country-specific risk in a portfolio, even though risks common to all markets remain.
How does the rupee's long-term weakness fit into this?
Since the economy was opened up, the rupee's value against major currencies has been set largely by market forces, and over long periods it has tended to weaken against the dollar. Assets priced in dollars carry a quiet hedge: when the rupee slips, their rupee value rises, which helps if some of your future spending — education or travel abroad, say — will be in foreign currency. I see that as a reason for diversification, not a forecast.
What is different about an offshore fund set up in GIFT City?
Funds based in India that invest overseas have repeatedly had to stop taking money because the RBI's industry-wide overseas quota was used up, and direct foreign broking accounts bring heavy KYC and platform risk. A retail fund housed in GIFT City is regulated by the IFSCA and sits outside that domestic ceiling; you remit dollars under the Liberalised Remittance Scheme, which allows up to $250,000 a year per PAN, and receive units with a daily NAV. It is a new route rather than a new idea.
Should I invest in one of these new GIFT City global funds now?
I would decide this inside a goal-based plan rather than on the excitement of a launch. If a goal involves spending in foreign currency, or you simply want to reduce concentration in one country, such funds do give you a way to diversify. But the set-up is very new and only a handful of funds exist, so I suggest building the allocation into the plan deliberately and acting when there are several options with a record to compare, not in a hurry because one door happened to open.
In our words, from what he said in the piece. General information, not personal advice.
More of Abhishek's views on mutual funds
A guest article on investing abroad through a retail mutual fund set up in GIFT City. It explains India's capital account controls and the limits that have closed many India-based overseas funds to new money, the case for global diversification and currency exposure, and the fund's structure, minimum investment, costs and access route under the Liberalised Remittance Scheme.
Publisher source
DSP Global Equity Fund: Should you invest in this retail offshore MF from GIFT City?