Question 1

What is a GIFT City Retail Outbound Fund?

Accepted Answer

A GIFT City Outbound Retail Fund is a retail investment scheme established in the International Financial Services Centre (IFSC) at GIFT City, India’s International financial hub, that primarily invests in securities and assets outside India, providing investors access to global investment opportunities.

Question 2

What is GIFT City and why does it matter for global investing?

Accepted Answer

GIFT City (Gujarat International Finance Tec-City) is India's first operational International Financial Services Centre (IFSC), located in Gandhinagar, Gujarat. It functions as a special financial zone with a distinct regulatory and tax framework that enables cross-border investing and access to global markets through investments in foreign currencies. For outbound investing, GIFT City provides three key advantages: GIFT City funds operate under IFSCA framework/ guidelines.. This means they are outside the US $7 billion industry-wide overseas investment cap that restricts domestic mutual funds. The fund is domiciled in India, so investors do not need to open foreign brokerage accounts, deal with overseas tax filings, or navigate foreign estate laws. The fund handles foreign withholding taxes, currency transactions, and global custody investors simply subscribe and redeem units, just like a domestic fund experience.

Question 3

Who regulates GIFT City Funds?

Accepted Answer

These funds are regulated by the International Financial Services Centres Authority (IFSCA), established under the IFSCA Act, 2019. IFSCA is a unified statutory regulator for all financial products, services, and institutions within IFSCs in India. Fund Management Entities (FMEs) operating at GIFT City must be registered with IFSCA and comply with the IFSCA (Fund Management) Regulations, 2025 and amendments/ circulars issued thereunder.

Question 4

How are GIFT City Funds different from a domestic SEBI-regulated mutual fund that invests overseas?

Accepted Answer

Regulator: Domestic overseas funds are regulated by SEBI; GIFT City funds are regulated by IFSCA. Overseas cap: Domestic mutual funds face a collective industry-wide cap of USD $7 billion for overseas investments, causing many popular international funds to suspend fresh inflows. GIFT City funds bypass this cap entirely because they use the investor's individual LRS limit & enables OPI route. GIFT City Taxation: Domestic international funds are taxed at the investor's income tax slab rate. GIFT City funds absorb taxes at the fund level, with the NAV published on a post-tax basis. Currency: Domestic funds are INR-denominated even if they invest abroad. GIFT City funds are USD-denominated — your investment is made and held in US dollars.

Question 5

Who is eligible to invest in a GIFT City Retail Outbound Fund?

Accepted Answer

Resident Indian individuals — investing under the Liberalised Remittance Scheme (LRS), subject to the US $2,50,000 annual limit. Indian corporates and entities — investing via the OPI (Overseas Portfolio Investment) route as permitted under FEMA regulations. Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) — subject to the specific fund's eligibility criteria and FEMA guidelines. Note: _Eligibility for each fund may vary. Always refer to the fund's Offer Document for exact investor categories._

Question 6

Is there a minimum investment amount?

Accepted Answer

Yes. The Scheme may prescribe minimum investment amounts for: Initial (first) purchase, and/or Additional purchases made after the initial investment.. The applicable minimum investment amounts, is specified in the Offer Document of the Scheme.

Question 7

What is the step-by-step process to invest?

Accepted Answer

Step 1 — Investors may invest in the Fund through either the Offline Mode or the Online Mode, subject to completion of the prescribed onboarding requirements. Offline Mode An investor may submit a duly completed application form along with the required KYC and supporting documents through either of the following methods: Submission via Email The investor may email scanned copies of the completed application form and supporting documents to jblkgiftinvest@camsonline.com . In addition, the investor shall be required to submit the original signed application form and supporting documents in physical form, which may be couriered to the designated CAMS address specified by the Fund from time to time. Submission at CAMS Service Centres The investor may submit the completed application form and supporting documents at any designated CAMS service centre. Step 1 —Once Folio created Welcome mail will be sent by service provider with bank details to remit the subscription amount to Fund GIFT City account. Step 2 — LRS Remittance: Submit Form A2 at your authorised dealer bank (AD bank) to initiate an outward LRS remittance in USD to FME designated GIFT City Foreign Currency Account. Step 3 — Confirmation will Receive for your investment and Statement of Account from the CAMS services to your registered email address once Units are allotted on applicable NAV Online Mode An resident individual investor may invest through the Fund Management Entity’s (FME’s) online investor portal by completing the prescribed registration, KYC verification, and onboarding process and submitting the investment application electronically through the portal. The Fund may prescribe such additional documentation, declarations, and verification requirements as may be required under applicable laws, regulations, and internal policies from time to time.

Question 8

What KYC documents are required?

Accepted Answer

Standard KYC documents for individual investors typically include: PAN Card (mandatory for resident Indians) Aadhaar Card or valid Passport (identity and address proof) Bank account details (cancelled cheque or bank statement) Fund subscription form for initial purchase & Transaction Slip for Additional purchase Note: _Corporate investors and NRIs may have additional documentation requirements. Check with CAMS through email _ jblk.international@camsonline.com for a complete list._

Question 9

How can I invest in the Fund?

Accepted Answer

Investors may invest in the Fund through either of the following options: Direct Plan - Investors can invest directly with the Fund without routing the investment through an intermediary or distributor.. Regular Plan - Investors can invest through intermediaries, distributors, or other entities empanelled with the Fund.

Question 10

What is the difference between the Regular Plan and Direct Plan?

Accepted Answer

Retail Funds in GIFT city generally offers two plans: a Regular Plan (where a distributor commission is embedded in the TER) and a Direct Plan (without distributor commission, resulting in a lower TER). The Direct Plan is suitable for investors who do not need distributor services. Over a long investment horizon, the lower expense ratio in the Direct Plan can result in meaningfully higher returns due to compounding. Both plans invest in the same underlying portfolio.

Question 11

How does the Liberalised Remittance Scheme (LRS) work for these investments?

Accepted Answer

Under LRS, the Reserve Bank of India permits resident individuals to remit up to US $2,50,000 per financial year (April–March) for permissible overseas transactions, including investments in GIFT City funds. The LRS limit is per individual, per PAN, and is cumulative across all permissible overseas uses in that year — including travel, education, property, and investments. Remittances must be made through an authorised dealer (AD) bank in India using Form A2.

Question 12

Is TCS (Tax Collected at Source) applicable?

Accepted Answer

Yes, TCS at the rate of 20% is applicable on LRS remittances exceeding INR 10 lakh per individual per financial year. TCS is collected by the authorised dealer bank (your remitting bank) — not by the fund — at the time of the outward remittance. The bank issues a TCS certificate (Form 27D), and the TCS amount is reflected in your Form 26AS. You can claim credit for the TCS collected against your income tax liability when filing your Income Tax Return (ITR). Note: _The first remittance of up to INR 10 lakh in a financial year does not attract TCS. Investors who plan their annual remittance accordingly can potentially avoid TCS entirely. Consult your tax advisor and remitting bank for up-to-date TCS rates and applicability_

Question 13

How is the NAV calculated?

Accepted Answer

The Net Asset Value (NAV) is calculated as: (Total Assets of the Fund − Total Liabilities) ÷ Total Units Outstanding. For GIFT City outbound funds, the published NAV is post-tax and post-expense — all applicable taxes paid by the fund and all operating expenses have already been deducted. This means the NAV you see on any given day reflects the true net value of your investment, with no further tax or expense deductions at redemption. NAV is published daily on the Fund Management Entity's official website. For detailed illustration please refer fund offer document

Question 14

Can I redeem my investment whenever I want?

Accepted Answer

For open-ended retail funds, redemption is available on any business day. Requests submitted before the fund's cut-off time are processed at the same-day NAV; requests after the cut-off are processed at the next business day's NAV. Redemption proceeds are credited to your registered bank account within the timeline specified in the Offer Document (T+7 working days). For close-ended funds, liquidity is available only at maturity.

Question 15

Will tax be deducted at the time of redemption?

Accepted Answer

No, Since the Fund (through its Trustee acting as representative assessee) discharges all tax liability on the income it earns, no tax is withheld by the fund at the time of redemption or distribution of proceeds. The NAV already reflects post-tax values. Investors receive the redemption proceeds net of all fund-level taxes, without any additional withholding. Corporate investors should independently evaluate whether any Minimum Alternate Tax (MAT) provisions apply to income received from the fund.

Question 16

How are currency conversions handled?

Accepted Answer

Since GIFT City funds are USD-denominated, your INR investment is converted to USD investment at the prevailing exchange rate when the LRS remittance is processed by your bank. Similarly, redemption proceeds received in USD investment are converted back to INR investment when repatriated. Currency fluctuations between INR investment and USD investment can positively or negatively impact your returns when measured in INR.

Question 17

Who pays the tax — the fund or the investor?

Accepted Answer

Fund, GIFT City Funds are typically structured as irrevocable determinate trusts. Under trust taxation principles, the Trustee of the fund acts as a representative assessee and discharges all tax liability on the income earned by the fund — using the fund's own PAN. This tax is not reflected against the individual investor's PAN. Any losses incurred by the fund are also set off and carried forward at the fund level, not passed through to individual investors. This structure means the daily NAV is always post-tax. So, Investors receive the redemption proceeds net of all fund-level taxes

Question 18

Is the principal amount guaranteed?

Accepted Answer

No, Investments in GIFT City Funds are not guaranteed. The NAV can go up or down based on market conditions. Investors may receive less than the amount they invested. Past performance is not indicative of future results. Please read all offer documents carefully before investing.

Question 19

How can I raise a complaint or grievance?

Accepted Answer

Investors can raise grievances through: (1) the Fund Management Entity's appointed dedicated investor Complaint Redressal Officer (CRO) & Complaint Redressal Appellate Officer (CRAO) (contact details are provided on the FME's website);. Grievances should typically be resolved within 30 days of receipt. If not resolved satisfactorily, investors may escalate the matter directly to IFSCA.

Question 20

Where can I find the Offer Document or PPM for a fund?

Accepted Answer

The Offer Document or Private Placement Memorandum (PPM) for each fund shall be made available on the Fund Management Entity's official website. Investors are strongly advised to read the complete Offer Document before making any investment decision.

Question 21

Can I hold units jointly?

Accepted Answer

Yes. Units may be held jointly with one or more investors, subject to applicable regulatory requirements and completion of the prescribed onboarding formalities. Investors may choose the mode of holding either as “Joint” or “Anyone or Survivor” at the time of onboarding. Jio BlackRock International AMC (IFSC) Private Limited is registered with IFSCA as a Registered FME (Retail) and acting as Fund Management Entity of the Fund. This document is for informational purposes only and does not constitute investment advice or constitute an offer or solicitation to sell or buy any securities. This document is for intended recipients only. The views expressed herein are based on internal data, publicly available information and other sources believed to be reliable. The document does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. There is no assurance that any investment strategy or Scheme will achieve its objectives or avoid losses. Certain statements in this document may contain forward-looking information, including projections, estimates, and other statements regarding future events or the future financial performance of the Scheme. These statements are based on current expectations and assumptions, and actual results may differ materially due to various risks and uncertainties. The value of investments may fluctuate and there is no assurance or guarantee that the investment objectives of the Scheme will be achieved. Past performance does not guarantee or indicate future results/returns. Neither the Fund Management Entity, Trustees or its affiliates nor any person connected with them shall accept any liability arising from the use of this document. Investors are advised to read all scheme-related documents carefully before investing. Investment in any scheme involves risks, including the possible loss of principal. The recipient(s) before acting on any information herein should make his/her/their own investigation and seek appropriate professional advice and shall alone be fully responsible / liable for any decision taken on the basis of information contained herein. Investment in retail fund is subject to market risks, read the offer document and all related documents carefully before investing.

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