Investment in foreign mutual funds and global indices is no child's play, with minimum investment reaching as high as $1.5 million — a threshold that is nearly out of reach for most retail investors.
Moreover, the Reserve Bank of India — and by extension, the Securities and Exchange Board of India — has not raised the overall investment limit for Indian mutual funds in overseas markets, making it more challenging for Indian investors with global investing ambitions.
Launched in the first week of June, the DSP Global Equity Fund aims to change that. It is the first open-ended mutual fund for retail investors introduced under GIFT City's updated 2025 framework.
The fund currently has ticket amount that goes as low as $5000, which translates to approximately Rs 4,30,000 to Rs 4,50,000.
"Suppose you are four-member family, you can effectively invest Rs 20-25 lakh annually," stated investment expert Vijai Mantri, calling the fund a "game changer"
Mantri expects the ticket size to reduce over time and said it may go as low as $500 or close to Rs 43,000.
Another advantage of the fund is that investors are exempt from the inheritance tax typically associated with other global investment options. Inheritance tax, which is levied on the beneficiary upon the investor's death, can eat into up to 40% of the inherited funds, according to Mantri.
Along with these benefits, the fund is "sector agnostic, geography agnostic and index agnostic" and only looks at "large, well-established players (like Puma) for investment," stated Mantri.
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