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).

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.

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.

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.