GIFT City witnesses surge in fund commitments, investor base in Q3

Fund management at GIFT-IFSC accelerated in FY26 Q3, with higher commitments, rising investor participation and growing traction in newly launched retail schemes

Fund management activity at GIFT-IFSC gathered pace in the third quarter of fiscal 2026 (FY26), with cumulative commitments for non-retail schemes rising to $32.13 billion from $26.30 billion in the preceding quarter. Investor participation also strengthened, with the overall investor count surging 42 per cent during the quarter, aided by growing traction in recently approved retail schemes. 

Data released by the International Financial Services Centres Authority (IFSCA) showed that total funds raised through the financial hub increased to $17.34 billion from $12.27 billion sequentially. 

Of the $15.5 billion deployed by non-retail schemes, $13.9 billion has been invested in India, while the remainder has been allocated to overseas jurisdictions. The number of registered fund management entities rose to 202, up from 194 in the previous quarter. 

Retail schemes, which commenced operations in the September 2025 quarter, are beginning to gain traction as well. Nine retail schemes that have been authorised at GIFT-IFSC so far have raised $12.74 million. Of the $9.04 million invested by these schemes, $6.51 million has been deployed in foreign jurisdictions. 

Investor interest in retail schemes rose sharply, with the investor base expanding to 1,239 as of December 2025, compared with 255 in the September quarter. The recent regulatory approvals have encouraged several asset management companies to enter and diversify within the segment. 

Overall investor count at GIFT-IFSC climbed to 6,721, with Category III alternative investment funds (AIFs) — which are permitted to undertake complex trading and hedging strategies — accounting for the bulk of participation. 

“The data underscores sustained growth momentum and deepening investor participation in the fund management space,” IFSCA said.