New Delhi, Oct. 22 -- Indian investors seeking exposure to overseas equities have fewer choices among conventional international mutual funds, as several schemes are not accepting fresh investments.

GIFT City funds offer an alternative to international mutual funds, many of which remain closed to fresh investments after the Reserve Bank of India (RBI) imposed a $7 billion industry-wide limit on overseas investments by domestic mutual funds. The cap has constrained fresh investments in several schemes, including those tracking the S&P 500 and Nasdaq-100.

Set up in the International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City, GIFT City funds operate under a separate regulatory framework and do not count tow...