Retail funds from GIFT City a step forward, but challenges remain: Vaibhav Shah
Speaking at the Moneycontrol Mutual Fund Summit, Shah noted that though the lower investment threshold — now as low as $5,000 to $10,000 — brings global investing within reach of retail investors, the operational hurdles under the LRS window continue to pose difficulties.
While the launch of retail funds from GIFT City has opened new avenues for Indian investors to access global markets, challenges persist — particularly in fund transfers under the Liberalised Remittance Scheme (LRS), said Vaibhav Shah, Head – Products, Business Strategy & International Business at Mirae Asset Investment Managers.
Speaking at the Moneycontrol Mutual Fund Summit, Shah noted that though the lower investment threshold — now as low as $5,000 to $10,000 — brings global investing within reach of retail investors, the operational hurdles under the LRS window continue to pose difficulties.
“Even if investors can start with smaller amounts within the ₹10 lakh limit, executing transfers through the LRS route is not as seamless as investing in domestic mutual funds,” Shah said. “It will require a fair amount of investor education to help people understand how LRS transfers work.”
He highlighted that the banking infrastructure in GIFT City is still evolving. “The system isn’t as robust as what we have for mutual fund payment gateways, where money moves instantly. Once this is addressed, retail participation can grow substantially and attract large capital inflows through the GIFT City route,” Shah added.