The trend, consistently observed through 2025 and sharply accelerating into early 2026, is being driven by two simultaneous forces: the rapid expansion of sophisticated IFSC-regulated investment products from India's most respected fund houses, and the mounting compliance burden and narrowing tax advantage of traditional offshore structures.
"NRIs who built Singapore structures ten to fifteen years ago are now questioning whether the cost and complexity still justifies the benefit," said Shrenik Shah, Managing Partner and Founder of Kalviro Ventures. "Gift City's IFSC has become a credible, IFSCA-regulated alternative that competes with established offshore hubs on substance — not just on patriotic appeal."
Why Singapore and Mauritius Structures Are Losing Ground
The DTAA advantages that historically made Singapore and Mauritius the default choices for Indian NRI wealth structuring have been progressively narrowed. Indian tax authorities have tightened treaty shopping provisions under FEMA, increased beneficial ownership disclosure requirements and raised scrutiny of offshore structures that lack genuine commercial substance.
The result is a cost-benefit equation that has shifted materially against traditional offshore arrangements. Annual corporate secretarial fees, audit obligations, director requirements and growing regulatory compliance costs now consume a meaningful share of the tax advantage these structures were originally built to capture. For a growing number of NRIs globally, the residual benefit no longer justifies the ongoing burden — and they are looking closer to home for alternatives.
Gift City IFSC — A Sophisticated Investment Ecosystem Built for Global NRIs
Gift City's IFSC, governed by the International Financial Services Centres Authority (IFSCA), has evolved rapidly into a world-class financial centre offering NRIs access to USD-denominated fund structures from India's leading asset managers — structures that were simply not accessible through any Indian investment channel until recently.
Kalviro Ventures currently provides NRI and HNI clients across the globe access to fifteen IFSC-regulated funds spanning equity, global investing and alternative investment strategies — all USD-denominated with minimum investments starting from USD 75,000.
Equity Funds via IFSC — NRIs seeking direct exposure to India's long-term equity growth story can access funds from Aditya Birla Sun Life (ABSL Global Bluechip Equity Fund and ABSL India Flexicap Fund), Mirae Asset (India Equity Allocation Fund), DSP (India Equity Opportunities Fund), ICICI Prudential (Smart Navigator Fund), Motilal Oswal (Gift City Fund of Funds) and Bandhan AMC — all structured through IFSC with USD 150,000 minimum investment.
Global Investing Strategy — For NRIs seeking international diversification beyond Indian equities, Parag Parikh Global Investing Strategy offers access to global equity markets through an IFSC structure with a more accessible entry point of USD 75,000 — the lowest minimum investment in Kalviro Ventures' Gift City product suite.
Category II AIFs — Private Market Access — Bharat Value IFSC Fund by The Wealth Company and Neo Secondaries Fund by Neo Asset represent Kalviro Ventures' private market offerings through Gift City. Both are six-year funds. The Neo Secondaries Fund operates in the secondary private equity space — acquiring stakes in existing PE and VC portfolios — which significantly reduces the J-curve risk that characterises traditional primary private equity investments. Both funds target a Multiple on Invested Capital of 2.5x to 3x over the fund life, subject to market conditions and fund performance. Actual returns are not guaranteed.
Category III AIFs — Active Equity Strategies Exclusively for NRIs — Carnelian India Amritkaal Fund, Motilal Oswal Alternative IFSC Trust, Alchemy India Long Term Fund, Renaissance India Growth Fund and Phillip India Billion Opportunities Fund all operate exclusively through Gift City's IFSC framework to serve NRI and foreign investors. Both Carnelian's and Motilal Oswal's strategies are flexi cap in nature — giving fund managers complete freedom to allocate across large, mid and small cap companies based on prevailing market opportunity. Operating through IFSC provides these funds a regulatory and tax framework that makes them significantly more viable for NRI participation than equivalent domestic Category III alternatives.
"What has changed in Gift City is not just the volume of products available — it is the calibre of fund managers now operating exclusively through IFSC to serve global NRI capital," said Shrenik Shah. "Names like Carnelian, Motilal Oswal, PPFAS, Alchemy, Renaissance and others have made a deliberate, long-term commitment to this structure. That level of institutional conviction tells you everything about where Gift City is headed over the next decade."
Investor Education — Understanding Private Equity Returns
A central part of Kalviro Ventures' advisory approach is ensuring NRI clients understand investment return metrics accurately before committing capital — particularly in the alternative investment space.
"The best performing Category II private equity AIFs have historically targeted IRRs in the range of 20% to 25%," said Shrenik Shah. "But IRR is an Internal Rate of Return that accounts for the precise timing and sequencing of cash flows across the fund's life — it is fundamentally different from a simple annualised return figure. Both our Category II funds deploy capital progressively over the first two to three years and return capital through years four to six. A 2.5x MOIC over a six-year period does not translate mechanically to 25% per year — the actual IRR depends entirely on when distributions are made. We always present clients with the complete cash flow model alongside any headline return figure because one without the other is an incomplete and potentially misleading picture."
Key Considerations for NRI Investors Exploring Gift City
Kalviro Ventures advises NRI investors globally to carefully evaluate four critical factors before any Gift City allocation.
Existing offshore structures with embedded gains must be modelled carefully before unwinding — the cost of restructuring without qualified tax advice can eliminate years of accumulated benefit in a single transaction. Currency risk varies significantly by product — while all Gift City funds are USD-denominated at entry, those investing in Indian equity markets retain INR-USD movement risk at the portfolio level that investors must understand clearly. Liquidity profiles differ materially across the product range — open-ended equity funds offer genuine flexibility while Category II AIF structures carry six-year lock-in periods that must be honestly matched to the investor's actual capital horizon. And every NRI investor must consult their tax advisor regarding applicable DTAA provisions, their specific country of residence and their individual tax position before making any allocation decision — Gift City's tax advantages are real but their application varies significantly by investor circumstance.
About Kalviro Ventures
Kalviro Ventures is a Chennai-based APMI-registered portfolio management firm providing NRI and HNI investors globally with access to India's most sophisticated investment opportunities across Gift City IFSC funds, Portfolio Management Services (PMS) and Alternative Investment Funds (AIF).
The firm provides curated access to IFSC-regulated funds from fifteen of India's leading asset managers including Aditya Birla Sun Life, Carnelian Asset Management, Motilal Oswal, PPFAS, Mirae Asset, DSP, Alchemy, Renaissance, Neo Asset, Phillip Capital, ICICI Prudential and Bandhan AMC.
Kalviro Ventures is led by Shrenik Shah, who holds NISM certifications in Mutual Fund Distribution (Series V-A) and Portfolio Management Services (Series XXI-A) and brings extensive experience advising NRI and HNI clients on cross-border wealth management and alternative investments.
Website: www.kalviroventures.com
Gift City Investment Guide for NRIs: https://www.kalviroventures.com/gift-city/
Contact: Shrenik Shah, Managing Partner & Founder
DISCLAIMER: This press release is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any securities or fund units. Investments in AIFs and IFSC-regulated funds are subject to market risks. Past performance is not indicative of future returns. NRI investors should consult their tax advisor regarding applicable DTAA provisions and their country of residence before making any investment decision. Fund-specific details including returns, tenure and minimum investment amounts are subject to change — refer to the respective fund's offer document or Private Placement Memorandum for current terms. Kalviro Ventures is an APMI-registered portfolio management firm regulated under SEBI.
