For the first time, Non-Resident Indians (NRIs) and foreign nationals will be able to invest in Indian equities with as little as $500. Tata Asset Management will open subscriptions for its new Dynamic Equity Fund on Monday, September 22, offering a low-cost entry point into the Indian market.
The feeder fund will pool money from NRIs and foreign nationals and invest it in Indian mutual fund schemes. Until now, alternative investment options in Indian equities required a minimum investment of $150,000 (₹1.32 crore). “Our fund opens the door for retail investors abroad,” said Abhinav Sharma, international business head at Tata Asset Management.
While Gift City in Gandhinagar already facilitates outbound investments for wealthy Indians, this fund marks a shift by creating inbound opportunities for small investors. Tata AMC expects the scheme to attract $300–400 million in assets under management within six months.
However, due to regulatory norms, investor onboarding is not fully digital. “Applications must be physically signed and verified by distributors overseas. We have requested digital verification, but approval is pending with regulators,” Sharma noted.
Tata AMC has also inaugurated its office at Gift City and plans to shift other inbound funds currently managed from Luxembourg and Mauritius.