Skip to content 
Until recently, Indian investors exploring global markets had two main routes.
They could invest directly in US stocks and ETFs through platforms like Vested, or they could gain exposure indirectly via feeder funds or Indian mutual funds that invest in overseas schemes.
Now, there’s a third route emerging, and it is changing how Indians can participate in global markets.
Through GIFT City (Gujarat International Finance Tec-City), Indian fund houses can now launch offshore funds domiciled in India, regulated by the International Financial Services Centres Authority (IFSCA).
One of the first to do so is the DSP Global Equity Fund, a GIFT City–based mutual fund that invests directly in global companies.
This route is different from traditional feeder funds or direct investing in its structure, taxation, and accessibility.
In this article, we will unpack how this fund works, why it matters, and how investors can access it through Vested.
What is GIFT City and Why It Matters
GIFT City, short for Gujarat International Finance Tec-City, is India’s answer to Singapore or Dubai, a financial hub designed to bring global banking, capital markets, and asset management activities onshore.
It operates under a special regulator called the International Financial Services Centres Authority (IFSCA), which allows Indian and foreign institutions to set up international financial services within India’s borders but with global flexibility.
For investors, that means:
- Funds based in GIFT City can invest globally without being restricted by SEBI’s overseas investment limits.
- They are still domiciled in India, so investors don’t need to worry about foreign disclosures or tax filings abroad.
- It’s regulated, transparent, and offers the convenience of a domestic mutual fund with the reach of an international one.
In short, GIFT City acts as a bridge between Indian savings and global opportunities and that’s what enables funds like DSP Global Equity Fund to exist.
Inside the DSP Global Equity Fund
The DSP Global Equity Fund is among the first retail mutual funds launched from GIFT City, giving Indian investors access to international markets through a structure regulated within India.
The fund invests in a diversified portfolio of global companies from well-known US giants to leading businesses in Europe and Asia.
Think of names like Apple, Meta, Lululemon, Nintendo, Brookfield, and Puma companies shaping global consumption, technology, and innovation.
Instead of investing in another offshore fund (as a feeder fund would), the DSP Global Equity Fund directly owns these stocks. That means:
- Investors’ money goes straight into global equities, not into another intermediary fund.
- Returns reflect the performance of the underlying international companies, minus expenses and taxes paid at the fund level.
- Portfolio decisions are handled by DSP’s experienced fund managers at their DSP Fund Managers IFSC entity, which is registered under the IFSCA.
This structure gives investors the simplicity of a mutual fund with the directness of global exposure, all managed from India’s international finance hub.
What This Means for Indian Investors
Indian investors today have more global investing options than ever before.
Direct investing platforms like Vested have already made it simple to buy international stocks and ETFs directly, letting you own shares of companies like Apple, Microsoft, or Netflix with just a few clicks.
But direct investing isn’t the only way to go global.
Many investors also use feeder funds that is Indian mutual funds that invest into international funds. However, these funds face a structural limitation: SEBI caps the total overseas exposure of all Indian mutual funds combined at USD 7 billion. When that industry-wide limit is hit, fund houses are forced to stop accepting new inflows until capacity opens up again.
That’s where GIFT City funds like the DSP Global Equity Fund open up an additional option for global investing.
Since these funds are set up and regulated under IFSCA, they aren’t bound by SEBI’s cap. They invest directly in global markets using the Liberalised Remittance Scheme (LRS), giving investors access any time of the year, without pauses or waiting lists.
Essentially, investors now have three distinct ways to invest globally:
- Direct investing through platforms like Vested is for hands-on investors.
- Feeder funds for indirect access via Indian mutual funds.
- GIFT City funds for a hybrid approach: global exposure managed from India, with simpler taxation and fewer restrictions.
It’s not about replacing existing routes rather more about adding more flexibility to how Indian investors can build global portfolios.
Taxation Simplified
One of the biggest advantages of the DSP Global Equity Fund (GIFT City) lies in its tax treatment, as it’s designed to make things simpler for investors.
With the DSP Global Equity Fund, the fund itself takes care of taxes on your behalf.
Here’s how it works:
- The fund is structured as a determinate irrevocable trust, and under Indian tax laws, the trustee pays taxes at the fund level and not the investor.
- This means you don’t pay tax again on the income distributed or when you redeem your units.
- Taxes are calculated daily and factored into the fund’s Net Asset Value (NAV) so the NAV you see is post-tax.
According to the DSP Fund’s official disclosures
| Type of Gain | Holding Period | Tax Rate (including surcharge & cess) |
| Short-term capital gains (STCG) | < 24 months | 42.74% |
| Long-term capital gains (LTCG) | ≥ 24 months | 14.95% |
So if the fund earns income from global equities, it pays tax on that income, and only the post-tax NAV is passed on to investors.
No additional TDS, no extra filings, and no need to declare these investments as foreign assets in your ITR since the fund itself is domiciled in India (GIFT City).
In short, DSP’s GIFT City fund combines global access with the tax simplicity of an Indian mutual fund, taking one major headache off investors’ plates.
Cost and Transparency
The DSP Global Equity Fund (GIFT City) keeps its cost structure simple and transparent.
Suited for investors who prefer to invest through distributors or financial advisors who offer guidance and portfolio management.
- Management Fee: Up to 1.5% per annum
- Operating Expense: Around 0.25% per annum
- Total Expense Ratio (TER): Up to 1.75% per annum
- Exit Load: 1% if redeemed within 2 years
All taxes are already factored into the fund’s daily NAV, meaning the NAV you see is post-tax and post-expense. There are no hidden charges or additional deductions at the time of redemption.
So whether you invest through Vested or via a trusted advisor, the DSP Global Equity Fund provides the clarity of costs and professional management that make global investing more accessible and transparent for Indian investors.
Who Should Consider This Fund
The DSP Global Equity Fund is designed for investors who want exposure to global companies but prefer doing it through a fund structure rather than managing international stocks on their own.
It can be a good fit for:
- Long-term global investors: If you’re looking to build wealth over 5–10 years and want your portfolio to include global leaders like Apple, Meta, or Lululemon, this fund offers that exposure through professional management and daily NAV tracking.
- Individuals planning global goals: Whether it’s education abroad, retirement in foreign currency, or simply dollar-based savings, having a part of your wealth invested internationally can be strategic.
- Those who prefer simplicity and structure: Direct investing gives more control, but it also means managing portfolio decisions yourself. A GIFT City fund like DSP’s offers a “plug-and-play” alternative that is regulated, tax-handled, and managed by professionals without extra paperwork.
In short, if you’re someone who believes your portfolio should reflect the global economy, not just the Indian one, this fund offers an easy, compliant, and efficient way to get there.
How to Invest via Vested
Investing in the DSP Global Equity Fund (GIFT City) is simple, and you can do it digitally through Vested, which enables seamless access to global investing routes from India.
Here’s how it works:
- Create or log in to your Vested account
If you’re already using Vested for global investing, simply log in and start investing in the fund right away. If you’re new, you will just need to complete a quick KYC and it’s a simple, one-time process that only takes a few minutes. - Choose “Global Funds” or “GIFT City Funds”
You will find the DSP Global Equity Fund listed under this category, along with key information like the latest NAV, fund performance, and documents.
- Fund your account via the Liberalised Remittance Scheme (LRS)
The investment is made in USD, and Vested guides you through the LRS process from linking your bank to completing remittance. - Track everything in one place
Once invested, you can monitor your holdings, check NAV updates, and redeem units directly from your Vested dashboard.
Because the fund is domiciled in India’s GIFT City, you do not have to worry about foreign brokerage accounts, overseas tax filings, or complex documentation.
Closing Thoughts
From direct investing in US stocks and ETFs to feeder funds and now GIFT City–based mutual funds, Indian investors today have more ways than ever to access global opportunities.
The DSP Global Equity Fund marks a significant milestone in this journey, offering global exposure, simplified taxation, and professional management within India’s own financial ecosystem. However, it is not a replacement for direct investing; rather, it is a complementary path that adds choice, flexibility, and structure.
As Indian savings increasingly look beyond borders, funds like these make it easier to build a globally balanced portfolio, one that grows with the world, not just with one market.
