Are GIFT City global funds better than buying foreign ETFs directly?

Published 19 September 2026

Kashi from Chennai

GIFT City funds look easier because I don’t have to manage a foreign brokerage account. But they are often more expensive than ETFs. Is the extra cost justified?

Sachin Kabra Co-founder Foliyo (SEBI RIA No: INA000023454), ex-Director HDFC Private Wealth, Business Head Motilal Oswal AMC LinkedIn

For passive exposure, ETFs are usually cheaper.

A passive GIFT City fund can cost more than buying a US-listed or UCITS ETF directly.

But cost is not the only factor.

GIFT City funds can offer convenience and simpler operations.

You don’t need to select ETFs yourself, directly manage a foreign brokerage account or handle foreign-asset reporting in the same way.

You also get Indian AMC governance and an Indian service-support system.

So a GIFT City passive fund is not necessarily the cheapest route. It is more of a convenience and structural choice.

“So purely on cost, ETFs of course win.”

“The GIFT City passive route is not the cheapest route. It is more of a convenience and structural choice.”

This is not personalized investment advice. Your goals, tax situation, portfolio size and risk tolerance may be different, so assess your own situation and discuss it with your financial and tax advisor.

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