PPFAS GIFT cuts minimum investment in Nasdaq-100, S&P 500 funds from $5,000 to $500: What investors need to know

Investors looking to gain exposure to US equities through PPFAS GIFT can now start with a much lower investment. PPFAS Alternate Asset Managers IFSC Private Limited has cut the minimum initial subscription for its Nasdaq-100 and S&P 500 fund of funds from $5,000 to $500, reducing the entry requirement by 90%.

The change cuts the minimum investment by $4,500, or about ₹4.3 lakh. The revised minimum will apply prospectively to new subscriptions from the effective date specified by the Fund Management Entity (FME).

Minimum investment drops from $5,000 to $500

In separate notice-cum-addendums dated 21 August 2026, PPFAS GIFT said the minimum initial subscription for the Parag Parikh IFSC Nasdaq 100 Fund of Fund and the Parag Parikh IFSC S&P 500 Fund of Fund has been revised from $5,000 to $500.

PPFAS GIFT has also reduced the outstanding investment threshold linked to its right to redeem all units when an investor makes a partial redemption. The threshold has been cut from $1,000 to $100.

Both changes will apply prospectively from the effective date specified by the FME.

Hema Thakkar, Head – Business Development (Alternatives), PPFAS, said the lower minimum investment is intended to make global diversification accessible to a wider set of eligible investors.

“When we launched our outbound passive funds, the objective was to provide investors with a simple and transparent route to participate in global markets through GIFT City. Reducing the minimum investment from US$5,000 to US$500 is a natural next step in that journey,” Thakkar said.

She added that the change would allow more eligible investors to gradually build international exposure through index-based strategies without having to commit a larger amount at the outset.

What investors get through PPFAS GIFT’s Nasdaq-100 fund

The Parag Parikh IFSC Nasdaq 100 Fund of Fund provides exposure to the Nasdaq-100 index, which comprises the 100 largest non-financial companies listed on the Nasdaq Stock Exchange.

PPFAS GIFT says the fund will invest all monies into accumulating exchange-traded funds and UCITS tracking the Nasdaq-100. It follows a passive investment strategy and gives investors exposure to the index without requiring them to open a foreign brokerage account.

The Nasdaq-100 includes companies across sectors such as technology, communications and consumer services and is commonly used as a benchmark for large non-financial companies listed on Nasdaq.

S&P 500 fund gives exposure to 500 major US companies

The Parag Parikh IFSC S&P 500 Fund of Fund provides exposure to the S&P 500 index, which comprises 500 leading publicly traded US companies.

The S&P 500 is a float-adjusted, market-capitalisation-weighted index designed to represent the large-cap segment of the US equity market.

According to PPFAS GIFT, the fund will directly invest the money received from investors into accumulating ETFs and UCITS tracking the S&P 500. Like the Nasdaq-100 fund, it follows a passive strategy and provides exposure to the underlying US index without investors having to open a foreign brokerage account.

The lower minimum subscription applies to new subscriptions prospectively from the effective date specified by the FME. Investors should therefore check the applicable effective date and transaction documents before making a fresh investment.