Global investing, once a niche activity for a small group of sophisticated Indian investors, is fast becoming a core part of portfolio construction. A recent study by Vested Finance highlighted how both retail investors and high-net-worth individuals (HNIs) are steadily building global portfolios, investing consistently rather than opportunistically. While retail investors account for a large majority of participants, HNIs contribute disproportionately to overall investment volumes, signalling a broad-based but layered adoption of overseas assets.
This shift is being accelerated by structural changes in India’s financial ecosystem, with GIFT City’s International Financial Services Centre (IFSC) emerging as a central force reshaping how Indians access global markets.
Brokerages expand reach as investor appetite grows
Indian brokerages have played a decisive role in pulling global investing into the mainstream. Bhanu Pratap Singh, Director at Bonanza Portfolio (IFSC) Pvt. Ltd., noted that Indian brokerages responded to rising investor awareness by expanding global offerings and simplifying access through partnerships with international brokers, custodians and exchanges.
These efforts, combined with mobile-first platforms, paperless onboarding, fractional investing and smoother fund transfers, have sharply reduced entry barriers.
According to the “How India Invests Globally – 2025” report by Vested Finance, investments in overseas equity and debt
Singh observed that there is a decisive shift in portfolio construction. Participation has also broadened geographically, with investors from more than 145 cities across India now holding overseas equities.
Global technology leaders such as Tesla and NVIDIA have emerged among the most widely held stocks, reflecting growing investor familiarity with global sectors and business models, he added.
Challenges
Despite strong growth, global investing has not been without challenges. Singh explained that brokerages must navigate a complex regulatory environment spanning the Liberalised Remittance Scheme, FEMA norms and international compliance standards. Managing foreign exchange exposure, cross-border settlement cycles and technology integration across jurisdictions adds to operational complexity. At the same time, investors face currency risks, detailed tax reporting requirements and trading hours that differ from Indian markets.
It is in this context that GIFT City has emerged as a significant catalyst. By offering access to global markets within a regulated Indian framework, GIFT IFSC reduces friction and improves investor confidence. Singh described it as a secure, transparent and cost-efficient alternative to traditional overseas routes, combining international financial infrastructure with domestic regulatory oversight.
Viram Shah, Founder and CEO of Vested Finance, said, the ecosystem is still evolving, and there are conversations around minimum ticket sizes, taxation, and product variety. But these are expected challenges in a developing market and will improve as participation grows.
Investor participation in GIFT City
Investor participation in GIFT City is currently led by non-resident Indians, HNIs, family offices and institutions. Singh said NRIs have been early adopters due to the foreign-currency framework, ease of repatriation and tax-efficient structures. HNIs and family offices are actively using alternative investment funds and structured products to build diversified global portfolios, while global asset managers and banks are setting up operations to manage cross-border capital from an India-based platform.
Retail participation is still evolving but steadily increasing through IFSC mutual funds, digital onboarding and simplified access under the LRS route.
Products gaining traction
According to Bhanu Pratap Singh, Director at Bonanza Portfolio (IFSC) Pvt. Ltd, alternative investment funds account for the largest share of assets in GIFT City, driven by demand for global equity, private credit and feeder fund strategies. Derivatives, particularly index and currency contracts, are seeing rapid growth in volumes, largely from institutional participants using them for hedging and arbitrage. Global equities and ETFs are also gaining traction among NRIs and affluent retail investors as access through IFSC exchanges improves.
AMCs and platforms deepen the ecosystem
According to market experts, asset management companies are increasingly using GIFT City to launch global products for Indian investors, helping make overseas exposure feel far more mainstream. Viram Shah, Founder and CEO of Vested Finance, emphasised, “we are already seeing more AMCs such as DSP, PPFAS, Edelweiss, and Baroda BNP Paribas planning or launching products through GIFT City. As this ecosystem expands, platforms like Vested can play an important role by offering strong distribution, banking integrations, and investor education”
Looking ahead, market participants expect GIFT City IFSC to fundamentally alter how Indians invest globally in the upcoming years. Singh believed that simpler regulations, deeper product offerings, improved liquidity and digital-first access will make global markets an integral part of Indian portfolios. By reducing reliance on overseas jurisdictions, GIFT City is positioning India as an emerging global capital marketplace
GIFT City is increasingly shaping not just access to global markets, but the very mindset with which Indians approach global investing.