SBI Mutual Fund Eyes Global Expansion With Bigger GIFT City Product Portfolio

SBI Mutual Fund is accelerating its international expansion strategy, with plans to double its overseas business over the next two to three years while broadening its investment offerings through Gujarat International Finance Tec-City (GIFT City). The asset manager is also stepping up investments in portfolio management services (PMS), alternative investment funds (AIFs) and specialised investment funds (SIFs) as it looks to diversify beyond its traditional mutual fund business.

Speaking to Moneycontrol, Debasish Mishra, Managing Director and Chief Executive Officer of SBI Funds Management, said the fund house’s international business has grown to nearly $2.5 billion with the support of strategic partner Amundi. He added that the company aims to double this business over the next few years while building stronger capabilities across emerging investment segments.

Focus on Expanding GIFT City Offerings

SBI Mutual Fund said it already operates both inbound and outbound investment products through GIFT City and is working on introducing additional offerings.

During a press interaction, Deputy Managing Director and Joint CEO D.P. Singh said the company currently offers an inbound feeder fund linked to its Focus Equity Fund, one of its best-performing schemes. He added that the fund house has recently launched an outbound Fund of Funds and is evaluating three to four more international products for future rollout.

The company said expanding its GIFT City platform remains a key priority as investor interest in cross-border investment opportunities continues to increase.

Operational Challenges Remain

The fund house acknowledged that GIFT City is still a relatively small business despite growing awareness among investors. Management said the investment process remains more cumbersome than domestic mutual fund transactions, requiring additional banking and fund transfer procedures.

According to the company, greater operational efficiency and easier investment mechanisms are expected to improve participation over time. As the ecosystem develops, SBI Mutual Fund expects transaction volumes through GIFT City to rise steadily.

The expansion of international offerings is expected to complement the company’s existing mutual fund business while providing investors with a broader range of overseas investment options.

AIF and Private Credit Expansion Underway

Apart from international products, SBI Mutual Fund is preparing to expand its alternative investment business. R.S. Srinivas Jain, Chief of Strategy, Digital & Technology and Head of Investor Relations, said the company plans to introduce new Category II and Category III AIF offerings, with an initial focus on private credit strategies.
The asset manager said its ₹16.5 lakh crore fixed-income franchise and long-standing relationships with large issuers provide a strong base for growing its private credit platform. Management also confirmed that it is developing a private equity business in response to rising interest from both domestic and global investors.

The company said it is evaluating multiple approaches to strengthen these businesses, including hiring specialised talent, partnerships, co-investment structures and acquisitions. While it did not disclose a timeline for future launches, SBI Mutual Fund indicated that expanding these businesses will remain an important part of its long-term growth strategy.