DSP Mutual Fund to launch global innovation fund of funds. Details here

The scheme will look to focus on innovation as its key driver and identify companies that have innovative thinking at their core, are likely to remain relevant and have the potential to succeed in the long term.

The new fund offer (NFO) for DSP GIF will open on 24 January and close on 7 February.

DSP GIF is a fund of funds (it will itself invest in different international funds), which will invest in a healthy mix of active & passive funds run by experts in their respective spaces.

The underlying funds for DSP GIF include iShares PHLX Semiconductor Exchange-Traded Fund (ETF), BGF World Tech fund D2 USD, iShares NASDAQ 100 UCITS ETF, Baillie Gifford Worldwide Long term Global growth fund, Nikko AM ARK Disruptive Innovation Fund, Morgan Stanley US Insight Fund and Bluebox Global Technology Fund.

These funds include emerging innovation themes such as metaverse, semiconductors, blockchain, 5G, gene technology, artificial intelligence, space exploration, electric vehicles and robotics, among others. As per the DSP MF, currently, there are very limited opportunities in the Indian listed space to participate in these emerging sectors.

DSP GIF will look for companies that fall within the three categories: leading dominators, young disruptors and connecting enablers. The fund will give investors exposure to about 200 stocks through its underlying portfolio of active & passive funds.

“The dominant companies and the enablers today have seen significant price appreciation due to their growing profits post Covid. On the other hand, the disruptive innovation space is seeing sharp price corrections after running up too fast. Innovation is profitable in the long term and volatile in the short term. We are at the cusp of such volatility in this space & hence we want to recommend the fund via a SIP focussed NFO, thus helping our investors take advantage of price fluctuations yet building a long-term portfolio of innovation led companies, that are otherwise not available in India,” said Kalpen Parekh, managing director and chief executive officer, DSP Investment Managers.

As per the fund house, Indians have started to diversify globally to take advantage of innovative companies that are not present in India. However, SIP flows into global fund of funds are just around ₹200 crore out of the entire ₹12,000 crore every month.

The fund managers to DSP Global Innovation Fund of Fund would be Jay Kothari and Kedar Karnik, and the scheme would be benchmarked against MSCI All Country World Index-Net Total Return.

The minimum investment during the NFO period would be ₹500, and in the multiples of Re 1, thereafter. There would be nil exit load on the scheme.