MFs eye GIFT City route to cross foreign investment limit barrier

Plan products to leverage individual LRS cap for global exposure

Even as hopes for an extension in the overseas limit for mutual fund (MF) investments dwindle, asset management companies (AMCs) are planning product launches in Gujarat International Finance Tec-City (GIFT City) to facilitate retail investments in international markets.

The MF industry reached its $7-billion limit for overseas investments a year ago. Since then, many funds have remained closed for fresh inflows.

“We don’t see any relaxation in the near term on overseas investment limits. However, we have set up an office in GIFT City through which we are exploring products for investors to use their individual liberalised remittance scheme (LRS)