💥 Unpopular Opinion:
If you think the smartest way to invest globally is through GIFT City, you might be walking into a trap without realising it.
Everyone loves the tax-free marketing.
But here’s the part nobody tells you 👇
1️⃣ “Tax-free” isn’t tax-free at all.
The AIF/AMC pays 42.74% on short-term gains & 14.95% on long-term gains before money reaches you. Your control = 0.
2️⃣ Compounding gets killed.
The fund pays tax every year… so your wealth engine slows down even before it starts.
3️⃣ You lose set-off benefits.
Your own capital losses can’t be adjusted against AIF gains. Silent leak… big impact.
4️⃣ No benefit of lower tax slabs.
Even if you qualify for 0% capital gains tax, the AIF has already paid tax on your behalf.
5️⃣ And the cost? Brutal.
LRS remittance in USD,
20% TCS above ₹10 lakh,
1% forex conversion charges,
2%+ fund management fees.
All before your money even begins its journey.
✔️ Truth:
For most investors, global exposure via Indian Mutual Funds is cleaner, cheaper, and far more tax-efficient.
To save you time, here’s the full list of Indian MFs still accepting investments into overseas funds 👇 (image attached)
If you’re planning global investing in 2025, read this twice. It may save you lakhs.
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