Parag Parikh Flexi Cap Fund: GIFT City sibling to invest in domestic scheme; check NFO dates, NRI, FII access and more

Parag Parikh Flexi Cap Fund, India's largest open-ended domestic equity scheme by assets under management (AUM), has launched its GIFT City sibling fund.

The new Parag Parikh India Flexi Cap Fund will provide FIIs and NRIs with a route to access the Indian equity market through the International Financial Services Centre (IFSC) at GIFT City.

According to a post on X by PPFAS GIFT, the new fund offer (NFO) opens today, 6 November, and will close on 27 November 2026. An NFO is the initial subscription period during which investors can apply for units of a newly launched fund. Here is what investors need to know about the new scheme and how it differs from the domestic fund.

GIFT City mutual funds are classified into two categories: inbound and outbound. Inbound funds allow foreign investors to invest in Indian markets, while outbound funds are open only to Indian investors with access to overseas markets.

The Parag Parikh India Flexi Cap Fund is a retail inbound feeder fund. It will invest in the domestic Parag Parikh Flexi Cap Fund. According to the scheme documents, Parag Parikh India Flexi Cap Fund is a passive feeder fund that invests directly in this actively managed flexi cap fund.

This means the GIFT City fund does not independently select stocks but derives its exposure from the underlying domestic scheme.

*Source: Parag Parikh India Flexi Cap Fund - Presentation

Non-resident Indians (NRIs), overseas citizens of India (OCIs), and eligible foreign investors, including individual and non-individual residents and non-resident entities, can invest in the scheme. Indian resident investors are not allowed to invest in this GIFT City fund.

• Purchase and redemption: All business days
• NAV computation: Daily
• Base currency (USD): Investments, redemptions, and NAV are denominated in US dollars.
• Bank account: No Indian bank account is required. Investors can transfer money directly from their foreign bank accounts.
• Minimum investment: $10,000, with additional investments of $1,000 per transaction.
• Exit load and lock-in: 2% for exits within 365 days; 1% for exits between 366 and 730 days. There is no lock-in period.

The key difference is that the domestic Parag Parikh Flexi Cap Fund is an actively managed equity scheme, while its GIFT City sibling is a passive feeder fund investing in the domestic scheme.

The domestic Parag Parikh Flexi Cap Fund is an open-ended dynamic equity scheme investing across large-cap, mid-cap and small-cap stocks. It has a mandate to invest at least 65% of its assets in equities, without restrictions on market capitalisation.

Apart from equities, it also invests in debt instruments and REITs, while maintaining cash holdings. The scheme also has exposure to four overseas-listed stocks: Alphabet, Meta Platforms, Microsoft Corp. and Amazon.

They are managed by different entities. The domestic scheme comes under PPFAS Asset Management Private Limited, while the GIFT City fund comes under PPFAS Alternate Asset Managers IFSC Private Limited.

For NRIs and FIIs, the new fund offers a direct route to access India's largest domestic equity scheme. They can invest in the feeder fund in US dollars, with their money routed into the domestic Parag Parikh Flexi Cap Fund.

For Indian retail investors, the launch could mean additional inflows into the existing Parag Parikh Flexi Cap Fund.

Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance. <br><br> She holds a degree in Economics (Hons.) along with an MBA in Finance, which has helped her develop a strong foundation in financial analysis, market understanding, and business reporting. Before joining journalism, she worked with finance and broking firms, where she closely followed market developments, investment strategies, and evolving industry trends. This practical exposure strengthened her understanding of financial markets. She has also written content across multiple formats and platforms, including YouTube, LinkedIn, and Instagram. <br><br> Over time, she has developed expertise in covering market-linked stories, investor-focused topics, and regulatory updates in a simplified yet informative style. She also enjoys reading and listening to Hindi poetry, reflecting her appreciation for literature and creative expression beyond the world of markets and numbers.

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