One of the largest AMCs in India, DSP has been helping investors make sound investment decisions responsibly and unemotionally for over 25 years. DSP is backed by the DSP Group, an almost 160-year-old Indian financial giant.
The family behind DSP has been very influential in the growth and professionalization of capital markets and the money management business in India over the last one-and-a-half centuries.
DSP Global Innovation Fund of Fund
This is an International Fund of Funds, FoFs (Overseas/ Domestic) fund with MSCI ACWI Net Total Return as its benchmark.
It was launched in February 2022 and had an AUM of more than Rs. 501 crores as on May 31, 2023. The risk level for this fund is categorized as Very High Risk.
Investment objective
The primary investment objective of the scheme is to seek capital appreciation by investing in global mutual fund schemes and ETFs that primarily invest in companies with innovation themes having the potential for higher revenue and earnings growth.
The scheme may also occasionally invest a certain portion of its corpus in money market securities and/or money market/liquid schemes of DSP Mutual Fund to meet liquidity requirements.
Investment process
- DSP Global Innovation Fund Fund invests globally in the innovation theme via companies that are either market-leading dominators, game-changing disruptors, or connecting enablers through a mix of different investing styles, market-caps & fund managers.
- It does this by investing in international funds across the active & passive space, which in turn invests in companies across multiple innovation themes and sectors such as Biotech, Aerospace & Defence, Fintech, E-Commerce, Mobility, Internet & interactive media, Semiconductors, and more.
Portfolio Composition
The fund had invested approximately 97% of the assets in equity, and the remaining were held in cash and cash equivalents.
Source: DSP MF
Performance:
If you had invested Rs.10,000 at the fund’s inception, it would now be valued at Rs 10,355.
Source: DSP MF
The fund has given a return of 15.04% in one year and has generated a CAGR (Compounded Annual Growth Rate) of 2.74% since inception.
Since the fund was launched just a year ago, investors should remain invested long-term to witness wealth creation.
Fund Manager
- Jay Kothari
Jay Kothari, Vice President & Product Strategist -Jay has been with DSP Mutual Funds since May 2005 and has been with the Investment function since January 2011.
Jay joined the firm as a Sales team (Banking) member in May 2005. Before joining DSPAM, Jay worked for Standard Chartered Bank for a year in the Priority Banking division. Jay completed his Bachelor of Management Studies (Finance & International Finance) from Mumbai University and an MBA in Finance from Mumbai University.
- Kedar Karnik
Kedar joined DSP Mutual Funds from Axis Asset Management and has over 17 years of investment experience.
He has done his Masters in Management Studies from Jamnalal Bajaj Institute of Management Studies. He has over a decade of investment experience. He has previously worked with HSBC Asset Management and CRISIL Ltd.
Who Should Invest in the DSP Global Innovation Fund of Fund?
Consider this fund if you:
- Are you an experienced Indian investor with a well-set core portfolio, looking to diversify no more than 10-15% of your portfolio internationally?
- Love the theme of innovation & its investment potential and recognize that the future is powered by those focused on re-imagining the world.
- Value international diversification & want to hedge your bets.
- Have the patience and mental resilience to remain invested for a decade or more.
- Do not always chase the highest possible returns.
Why Invest in this Fund?
- To participate in cutting-edge next-gen themes like Artificial Intelligence, Machine Learning, Robotics, Cloud Infrastructure, Social Media, OTT, Digital Transformation & more.
- To own companies that have demonstrated higher growth & also have higher earning growth expectations.
- To get access to international companies that may be difficult for Indian investors to invest in directly- especially since major innovations have happened outside India.
Time Horizon:
- One should look at investing for at least ten years or even more.
- Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.
Conclusion
The DSP Global Innovation Fund of Fund gives investors exposure to international companies engaged in the technology sector.
Thus, it is the best option for investors seeking long-term capital growth and investment in units of overseas funds that invest primarily in equity and equity-related securities of technology companies with high risks.
Investors need to stay invested long-term to reduce volatility and witness the benefits of compounding.
Disclaimer
This is not recommendation advice. All information in this blog is for educational purposes only.
