DSP Mutual Fund will launch a global innovation fund of funds. details here

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

The New Fund Offer (NFO) for DSP GIF will open on January 24 and close on February 7.

DSP GIF is a corpus of funds (it will itself invest in various international funds), investing in a healthy mix of active and passive funds operated by experts in their respective fields.

Underlying funds for DSP GIF include iShares PHLX Semiconductor Exchange-Traded Fund (ETF), BGF World Tech Fund D2 USD, iShares NASDAQ 100 UCITS ETF, Bailey Gifford Worldwide Long Term Global Growth Fund, Nikko AM ARK Disruptive Innovation Fund, Morgan Stanley US Are included. 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. According to DSP MF, at present, there are very limited opportunities in the Indian listed space to participate in these emerging sectors.

DSP GIF will be looking for companies that fall into three categories: Major Dominators, Young Disruptors and Connecting Enablers. The fund will allow investors to invest in around 200 stocks through its underlying portfolio of active and passive funds.

“Key companies and backers have seen significant price appreciation today due to rising profits due to Covid. On the other hand, the disruptive innovation space is seeing a sharp price correction after a very steep run. Innovation is profitable in the long run and unsustainable in the short run. We are on the verge of such volatility in this space and hence we would like to recommend funds through SIP centric NFOs, thus helping our investors to take advantage of price volatility, yet be innovative. This creates a long-term portfolio of companies, which are not otherwise available in India,” said Kalpen Parekh, Managing Director and Chief Executive Officer, DSP Investment Manager.

According to the fund house, Indians have started diversifying globally to take advantage of the innovative companies present in India. However, SIP inflows into Global Fund of Funds are just around 200 crore out of total 12,000 crores every month.

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

Minimum investment during NFO period will be 500, and thereafter in multiples of Rs. There will be zero exit load on the scheme.