- Why Is This a Game-Changer?
- So, What Will Your Money Be Invested In?
- What Does the DSP Global Equity Fund Offer?
- Onshore vs. Offshore Funds: What’s the Difference?
On June 2, 2025, DSP Mutual Fund made history by launching India’s first retail-focused offshore mutual fund, the DSP Global Equity Fund, from GIFT City, Gujarat’s International Financial Services Centre Authority (IFSCA). For the first time, everyday Indian investors like you and me can invest directly in global markets through a fund based in India’s financial hub.
But what does "offshore" mean?
Simply put, it’s a fund set up outside India’s regular system, in this case, in GIFT City, so it can freely invest in global markets like the US, Europe, and China
This is a game-changer for Indian investors. Let’s break down why this fund is groundbreaking, how it works, and why it might be a smart choice for your long-term goals, using simple examples tailored for Indian audiences.
Why Is This a Game-Changer?
Imagine you wanted to invest in a truly global mutual fund. In the past, it was like trying to get into an exclusive club, mainly open to the very wealthy. This new fund changes all that.
1. Not Affected by SEBI’s Overseas Investment Limit
Until now, investing in funds based outside India was mostly for big corporations or individuals with crores to invest. This fund is the first of its kind designed for the common retail investor.
For example, how UPI made digital payments simple for everyone, this fund aims to do the same for investing in global companies.
2. Not Affected by SEBI’s Overseas Investment Limit
Mutual funds can make overseas investments subject to a maximum of USD 1 billion per mutual fund, within the overall industry limit of USD 7 billion," Sebi said. This is like a highway with a massive traffic jam once the limit is reached; no new cars (investments) can get on. This is why you often see popular international funds stop taking new money.
The DSP fund, however, takes a special "express lane." Because it's based in GIFT City, it doesn't get stuck in that traffic jam. It uses your personal Liberalised Remittance Scheme (LRS) quota.
- Example: Imagine every Indian citizen has a personal suitcase that can carry up to $250,000 (roughly ₹2 crore) out of India each year for investments. This fund lets you use your suitcase. So, even if the main highway is jammed, your express lane is always open.
3. Minimum Ticket Size for Investors
The minimum investment is $5,000 (about ₹4.2 lakh). While this isn’t a small amount, it’s lower than the entry point for most traditional offshore investment options. This fund is aimed at serious retail investors who are ready to explore global markets but were previously held back by high barriers to entry.
So, What Will Your Money Be Invested In?
Until now, you could invest in U.S. stocks through INDmoney, but not in international mutual funds. With this new fund, your money is invested in a basket of global stocks diversified across top companies from the U.S., Europe, and other markets. These stocks are carefully selected and managed by expert fund managers, giving you professional access to global opportunities.
- Example: Instead of directly buying individual stocks like Apple or Microsoft, your investment is pooled with others and used to build a diversified portfolio. This may include global giants such as Apple, Alphabet (Google), Microsoft, or Louis Vuitton, among others.
The fund is also designed to be investor-friendly:
- Simple Fee: The fund charges an annual management fee (known as the expense ratio). Think of this as a small maintenance charge for handling your investment.
- No "Bonus" Fee for the Manager: The fund has zero performance fees. This is a huge plus! For example, if the fund delivers a fantastic 25% return in a year, you get to keep all of it (after the basic management fee). The fund manager doesn't take an extra "bonus" cut for this great performance.
What Does the DSP Global Equity Fund Offer?
Investment Focus
The fund invests in high-quality global companies with strong financials—think businesses with solid profits, steady cash flows, and attractive prices. It covers markets like the US, Europe, China, and more, giving you exposure to diverse economies.
Example: Your investment could include shares in a US tech giant like Microsoft or a European luxury brand like LVMH, all in one fund.
Flexible Withdrawals
You can buy or sell units on any working day, making it easy to access your money. If you withdraw within 12 months, there’s a 1% exit fee; after that, it’s free.
Example: If Raj invests ₹5 lakh and needs to withdraw ₹1 lakh after 6 months for an emergency, he’ll pay a small 1% fee on the amount withdrawn. If he waits a year, there’s no fee.
Low-Cost Fee Structure
- Direct Plan: ~1.50% annual fee (even lower if you invest over $100,000).
- Expense Ratio: Ranges from 1.25% to 2.5%, depending on the plan and how you invest (e.g., through a distributor).
- No Performance Fee: Unlike some funds that charge extra for beating benchmarks, all gains go to you.
Example: If you invest ₹4.2 lakh and the fund charges a 1.5% fee, she pays ~₹6,300 annually, a small price for access to global markets.
Tax Simplicity
Taxes are handled at the fund level, so you don’t need to worry about reporting gains in your Income Tax Return (ITR). Here’s how it works:
- Short-term capital gains (redeemed within 2 years): Taxed at 42% by the fund.
- Long-term capital gains (after 2 years): Taxed at 14.95% by the fund.
Other Perks
- No extra taxes: No Securities Transaction Tax (STT), stamp duty, or GST on subscriptions.
- Purpose: Ideal for long-term goals like funding children’s education abroad, global travel, or retirement in a foreign country.
Onshore vs. Offshore Funds: What’s the Difference?
Onshore Funds (India, SEBI-regulated):
- Low-cost & transparent: SEBI caps expense ratios (~2.25%) and enforces strict disclosure norms.
- Limited global exposure: Indian mutual funds can invest overseas, but within a total industry cap of USD 7 billion (USD 1 billion per mutual fund).
Offshore Funds (GIFT City, IFSCA-regulated for Indian residents)
- Global access via LRS: Investors can allocate up to USD 250,000 per year globally through the Liberalised Remittance Scheme (LRS).
- Broader investment universe: Access to global mutual funds, ETFs, and strategies beyond SEBI-approved options.
Example: An onshore fund might invest in Indian companies like Reliance or TCS, while DSP’s offshore fund lets you own shares in Tesla or Unilever.
Final Thoughts
DSP Mutual Fund’s launch of the DSP Global Equity Fund from GIFT City is a landmark moment for Indian investors. It opens the door to global markets in a way that’s accessible, tax-efficient, and flexible. Whether you’re saving for a dream vacation, your child’s overseas education, or a comfortable retirement, this fund offers a smart way to diversify your investments. By investing as little as ₹4.2 lakh, you can own a slice of the world’s best companies, all while benefiting from GIFT City’s unique advantages.
Disclaimer
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. The securities are quoted as an example and not as a recommendation.This is nowhere to be considered as an advice, recommendation or solicitation of offer to buy or sell or subscribe for securities. INDStocks SIP / Mini Save is a SIP feature that enables Customer(s) to save a fixed amount on a daily basis to invest in Indian Stock. INDstocks Private Limited (formerly known as INDmoney Private Limited) 616, Level 6, Suncity Success Tower, Sector 65, Gurugram, 122005, SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428. Refer https://indstocks.com/pricing?type=indian-stocks; https://www.indstocks.com/page/indian-stocks-sip-terms-and-condition for further details.