Parag Parikh Financial Advisory Services Ltd (PPFAS)

Announcement and News

USD 5,000 Was Chosen to Beat the 20 per cent TCS  

If you tried to start or increase a SIP in any international mutual fund over the past three years, you likely hit a wall: the scheme was either closed to fresh investments or accepting only token amounts. This was not a coincidence. Indian mutual funds collectively reached an industry-wide overseas investment ceiling set by the RBI and SEBI, and then got stuck there. The problem was regulatory, not demand – and for most retail investors, the “global allocation” box in their portfolio stayed conceptually important but practically empty.

PPFAS Mutual Fund is attempting to solve this through a structurally different route: GIFT City’s International Financial Services Centre (IFSC). Funds launched from GIFT City’s IFSC are not subject to the same overseas investment ceiling that capped domestic international funds – making this a genuinely new pipe, not just a rebrand. PPFAS has launched two passive outbound index Fund-of-Funds (FoFs) from its GIFT City subsidiary: the Parag Parikh IFSC S&P 500 Fund of Fund and the Parag Parikh IFSC Nasdaq 100 Fund of Fund. The NFO subscription window ran from 23 February to 16 March 2026.

Investors comparing this with other international allocation options can browse the Best Equity: International Mutual Funds screener on Value Research, which organises global options by performance and risk.

How These FoFs Actually Work: The Money Flow Explained

Both PPFAS GIFT City schemes are passive feeders: they collect money from investors in India and deploy it into accumulating ETFs or UCITS funds that track their respective indices. You invest in rupees from your regular Indian bank account; the INR is converted to USD within the GIFT City framework under the RBI’s Liberalised Remittance Scheme (LRS), and the fund manages the rest. You never need to open a foreign brokerage account or maintain overseas documentation.

The funds use accumulating ETFs and UCITS – meaning dividends from underlying holdings are reinvested automatically rather than paid out. This is an important structural detail: no dividends means no recurring income that triggers immediate taxation or distribution events inside the fund. Neil Parikh, Chairman & CEO of PPFAS, confirmed this design choice: investing in accumulating ETFs or UCITS is more tax-efficient than replicating the index directly because transaction costs are minimal and there is no churn or dividend outflow to trigger taxes.

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