Branch² Intelligence

Inside GIFT City’s first physical gold fund: How investors can redeem actual gold bars

IN · 2026-07-07

Key takeaway

GIFT City launches India's first physical gold fund for non-resident investors, redeemable in actual gold bars.

  1. Step 1 · The triggerGIFT City launches physical gold fund for NRIs, creating a new regulated channel for gold investment.
  2. Step 2 · Knock-onCustodian banks and logistics providers (HDFC Bank, India Post, MMTC-PAMP) gain fee income and handling volumes.
  3. Step 3 · Reaches youCompeting gold ETFs (SBI Gold ETF) face substitution risk as NRIs prefer physical redemption; gold import volumes may shift from Dubai to India.

The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.

Source: IN:The Hindu BusinessLine

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