GIFT IFSC-based fund commitments top $45 billion in April-June quarter

Cumulative funds raised by non-retail schemes rose to $22.93 billion, while the number of fund management entities increased to 235 at the end of the June quarter

The fund management ecosystem at Gujarat International Finance Tec-City (GIFT City) expanded in the April-June quarter, with cumulative funds raised by non-retail schemes in the International Financial Services Centre (IFSC) rising to $22.93 billion as of June 30, from $19.51 billion at the end of March. 

Cumulative commitments increased to $45.08 billion from $39.09 billion, while investments rose to $21.05 billion from $19.67 billion. Fund Management Entities (FMEs) increased to 235 from 217 in the January-March quarter. The number of funds and schemes rose to 401 from 360, according to the latest quarterly bulletin of the International Financial Services Centres Authority (IFSCA). 

Investor participation recorded a sharper increase, driven largely by retail investors. The total number of investors across IFSC fund schemes rose to 16,150 in June from 9,594 in March. 

Retail scheme investors more than doubled to 8,467 from 3,438, accounting for more than half of the total increase during the quarter. Retail fund management activity itself remained relatively small in absolute terms but expanded during the quarter. 

 

Investments by retail schemes totaled $87.32 million, of which $18.78 million was invested in India and $68.54 million in foreign jurisdictions. The quarter also saw a sharp expansion in the client base of Global Access Providers (GAPs), which facilitate access to overseas securities through the IFSC.  

The number of clients onboarded by GAPs stood at 2.99 million as of June, compared with 2.51 million at the end of March, indicating that the GAP channel is emerging as a significant route for investors seeking access to international markets through GIFT IFSC. There were 18 GAPs operating in the IFSC at the end of June.