New Delhi, Feb. 25 -- Gift City is currently dominated by non-retail funds, requiring a minimum investment of $150,000 (about Rs.1.3 crore). Over the past one year, the number of Category III (CAT-3) funds has more than doubled to 116, with investments in Indian markets increasing 2.5 times to $1.9 billion.

These funds are primarily attracting foreign and NRI investors; however, their widespread adoption is limited by the high minimum investment requirement. Retail funds, which can accept investments as low as $100, are yet to be launched.

In the previous Union budget, the government extended favourable tax treatment to retail funds in Gift City, similar to what was earlier extended to non-retail funds. However, no asset manager has lau...