Summary of this article
GIFT City's fund investor base rose 68 per cent to 16,150
Retail investors jumped 146 per cent to 8,467 during April-June
Fund commitments at GIFT City rose to USD 45.08 billion by June-end
The number of investors in funds registered at GIFT City's International Financial Services Centre (IFSC) jumped 68 per cent in the April-June quarter, with retail investors accounting for most of the increase, according to the latest bulletin from the International Financial Services Centres Authority (IFSCA).
The total investor base across fund schemes at the IFSC rose to 16,150 as of June 30, 2026, from 9,594 at the end of March. This means 6,556 investors were added during the quarter. Retail schemes accounted for 5,029 of these additions. Their investor base more than doubled to 8,467 from 3,438, marking a 146 per cent increase in three months.
Retail investors now account for more than half of the total investor base in GIFT City's fund ecosystem, compared with around one-third at the beginning of the year.
The other three categories of Alternative Investment Funds (AIFs) also added investors, but at a much slower pace.
Category III AIFs, which typically use hedge fund-like strategies, saw their investor base rise to 5,175 from 3,773. Category II AIFs, which generally invest in private equity and private debt, increased to 1,655 from 1,611. Category I AIFs, which include venture capital and angel funds, rose to 853 from 772.
Fund Management Activity Expands
Fund management continues to be one of the fastest-growing businesses at GIFT City's IFSC. The number of registered Fund Management Entities (FMEs) increased to 235 at the end of June from 217 three months earlier. The number of live schemes also rose to 401 from 360.
The growth was also visible in the money managed through these funds. Cumulative commitments raised by funds at the IFSC rose to USD 45.08 billion, or about Rs 4.31 lakh crore, by June-end from USD 39.09 billion, or Rs 3.74 lakh crore, in March.
Actual funds raised increased to USD 22.93 billion, or about Rs 2.19 lakh crore, from USD 19.51 billion, or Rs 1.86 lakh crore. Investments deployed by these funds rose to USD 21.05 billion, or about Rs 2.01 lakh crore, from USD 19.67 billion, or Rs 1.88 lakh crore.
Retail Push Starts Showing Up In Data
The sharp increase in retail investors comes as IFSCA has been trying to make GIFT City's fund platform more accessible to Indian retail investors.
The regulator has eased entry norms for retail schemes and has been positioning the IFSC as a route for domestic investors to access global assets without using the Reserve Bank of India's (RBI) Liberalised Remittance Scheme (LRS).
The June-quarter data suggests that the push is beginning to translate into actual participation. However, the absolute investor base remains small compared with India's broader investment market.
GIFT City's total fund investor base stood at 16,150 at the end of June, even after more than tripling in nine months. This is still a fraction of India's 61.9 million unique mutual fund investors, according to the IFSCA bulletin.
NRI, OCI Investments Rise At Steadier Pace
Investments linked to non-resident Indians (NRIs) and Overseas Citizens of India (OCIs) into IFSC funds also increased during the quarter, although at a more measured pace.
Such investments rose to USD 851.09 million, or about Rs 8,136 crore, in April-June from USD 747.30 million, or Rs 7,143 crore, in the previous quarter.
(USD 1 = Rs 95.59)
