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PPFAS to launch 2 new passive GIFT City based outbound funds on February 23. Check key details
According to the fund house, these funds are retail funds launched by PPFAS Gift which will directly invest all monies into S&P 500 and NASDAQ 100 accumulating ETFs and UCITS. Both funds use a passive strategy, giving investors direct exposure to the S&P 500 and NASDAQ 100 indices without requiring them to open foreign brokerage accounts.
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These funds will invest 90-100% in ETFs and UCITS linked to their respective index and 0-10% in Debt Securities, Money Market Instruments & other similar instruments. The face value for these funds is US$ 100, the NAV computation is on a daily basis and purchase and redemption is on all business days.
The target investors for both these funds are – Indian resident individuals, corporates, trusts, partnership firms and other eligible investors.
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There is no lock-in period or exit load applicable. The funds offer two classes of units – A and B. A is for direct and B is for regular and the minimum initial investment in both the classes of units is US$ 5000, the minimum top-up in these funds is US$ 500. The total expense ratio of the schemes in both A and B classes of units are also the same with a difference in Max TER including Investee Funds.
PPFAS informed about these new offerings on social media platform X which said “Invest beyond borders. Two global opportunities. One launch window. The NFO for Parag Parikh IFSC S&P 500 Fund of Fund and Parag Parikh IFSC Nasdaq 100 Fund of Fund is open from 23rd February to 16th March 2026. Explore international exposure through GIFT City.”According to PPFAS, these funds offer some advantages for investors on investing through these funds compared to direct investing. These advantages include: no inheritance tax implications, ease of tax compliance for investors (tax paid at the fund level), the OPI route being allowed only through a GIFT City-based pooled vehicle, optimization of involved costs (FX conversion & transaction costs), and a strong compliance and governance framework.
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Kotak Mahindra Bank is the custodian and banker, IC RegFin Legal Partners LLP is the legal advisor, SDKD & Associates LLP is the Statutory Auditor, and Apex Fincore LLP is the fund accountant.
In November 2025, PPFAS announced it had received approval to launch two new passive, GIFT City-based outbound funds.
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