DSP IFSC launches first offshore retail fund from GIFT City

Investing in DSP’s outbound retail fund from GIFT City falls under the Liberalised Remittance Scheme (LRS), which allows Indian residents to remit up to $250,000 per financial year abroad for permitted capital and current account transactions.

DSP IFSC (under the DSP Asset Manager's umbrella) has received approval and launched the DSP Global Equity Fund, the first retail offshore fund from Gift City. The fund is structured under the Fund Management Entity (FME) license in GIFT City, allowing investors to deploy their money into global equities particularly in markets like the US, Europe, Japan, Korea, and other parts of Asia via GIFT City. It is built as a concentrated, actively managed equity fund that seeks to deliver long-term absolute returns in dollar terms.

Investing in DSP’s outbound retail fund from GIFT City falls under the Liberalised Remittance Scheme (LRS), which allows Indian residents to remit up to $250,000 per financial year abroad for permitted capital and current account transactions. Since this fund is domiciled in GIFT City but invests globally, it qualifies as an overseas investment for retail investors.

Under the fund, retail investors will be permitted to invest with a minimum amount of $5,000. "This fund is open to retail investors across the board. Applications can be made directly or via intermediaries such as independent financial advisors (IFAs), banks, and online platforms. The investment must comply with the Liberalised Remittance Scheme (LRS) guidelines, meaning investors can remit up to $250,000 per financial year abroad, which would include allocations to this fund," Jay Kothari, Global Head - International Business at DSP Asset Managers' told Moneycontrol.

For regular (distributor-based) plans, the annual expense is around 1.75 - 2%, while for direct plans, it is closer to 1 -1.25 %. "While IFSCA regulations permit a higher expense cap (up to 2.5%) DSP has chosen to price the fund reasonably to preserve investor returns," Kothari said.

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