Neutral impactSector
GIFT City funds or direct overseas investing? Experts explain the costs, tax rules and risks investors should know
Mint 1 hr ago·11 Oct 2026, 1:45 am
Indian investors looking to tap global markets now have two primary routes: investing through GIFT City‑based international funds or opening a direct overseas brokerage account. Experts are outlining how each option works, from the fund structure in the International Financial Services Centre to the mechanics of buying foreign‑listed securities on one’s own.
The choice matters because costs, tax treatment and control differ. GIFT City funds typically bundle fees and may benefit from certain tax efficiencies, while direct investing often involves currency conversion charges and separate withholding taxes on dividends. For a company like TCS, which has both domestic listings and overseas ADRs, the route chosen can affect the tax you pay on gains and the level of ownership transparency you receive.
Investors should keep an eye on regulatory updates from the RBI and SEBI that could reshape GIFT City fund rules, any changes in India’s tax treaties that alter withholding rates, and the performance trends of the foreign markets they wish to access. Guidance from wealth managers on suitability and risk management will also be key as the landscape evolves.
Affected stocks
Neutral2 stocks
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Key takeaways
- Concerns Tata Consultancy Services (TCS).
- Category: Sector.
- Also mentions ANANDRATHI.
Why it matters
A routine update for Tata Consultancy Services. Use the price and stock snapshot to gauge how the market is responding.
