Franklin Templeton opens first GIFT City outbound fund, $5K minimum
What's the deal? Franklin TempletonDealroom has a profile for this one. Try Dealroom → has launched the Franklin US Equity IFSC Fund, its first outbound retail fund domiciled at Gujarat International Finance Tec-City (GIFT City). The open-ended feeder fund channels capital into the FTGF Putnam US Research Fund, an actively managed US equity strategy benchmarked to the S&P 500. Its minimum investment is $5,000.
The details: The fund is managed by Franklin Templeton Asset Management (IFSC) Private Limited under the International Financial Services Centres Authority (IFSCA). Its subscription window runs from November 11 to December 11, 2026. It offers daily liquidity and a 2% exit load on redemptions within 24 months.
Why now? Domestic Indian mutual funds are constrained by the Reserve Bank of India's overseas investment caps, which forced several international schemes — including some of Franklin Templeton's — to pause fresh inflows in July 2026. GIFT City funds sidestep that limit, making the hub a fast-growing channel for Indian investors seeking exposure abroad.
What's the endgame? The fund feeds into a master scheme run by Putnam Investments, a Franklin Templeton company, which held assets of more than $10.6 billion as of September 30, 2026. Franklin Templeton is positioning the product as an actively managed, US-focused option rather than a passive index tracker.
What could go wrong? Investors still route money through the Liberalised Remittance Scheme, which carries an annual limit and remittance costs. The fund offers no systematic investment plan — only lump sums.
The signal: Established Indian fund houses are building GIFT City into another corridor for overseas diversification. Recent outbound offerings include Aditya Birla Sun Life's emerging-markets fund and, earlier this year, DSP's global-equity and PPFAS's S&P 500 and Nasdaq 100 products. Franklin's differentiator is active management, though its $5,000 minimum sits well above Aditya Birla's $500 entry point.
Read more: mfnewsdaily.in
Image credit: vicki moore
