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 World Mining Fund
DSP World Mining Fund Direct Plan-Growth is an International Fund of Funds. It primarily invests in leading international companies in the mining and metals sector. It does this by investing in BGF World Mining Fund.
Investment Objective
The primary investment objective of the world mining fund Scheme is to seek capital appreciation by investing predominantly in the units of BlackRock Global Funds & World Mining Fund (BGF – WMF).
Investment Process
- This Fund of Fund scheme invests in the units of the BGF World Mining Fund.
- BGF World Mining Fund invests in the equity securities of mining and metals companies worldwide, predominantly in producing base metals and industrial minerals.
Portfolio Composition
The portfolio holds significant exposure in copper stocks at 17.60% and Gold, which accounts for roughly 15.30% of the portfolio. The top five sectors hold more than 75% of the portfolio.
Source: DSP MF
Top 5 Holdings
| Name | Weightage % |
| Bhp Group Ltd | 8.80 |
| Vale Sa | 7.60 |
| Glencore Plc | 7.60 |
| Teck Resources Ltd | 5.20 |
| Freeport-McMoRan Inc | 4.90 |
Source: DSP MF
Performance
If you had invested 10,000 at the fund’s inception, it would now be valued at Rs 16,093.
Source: DSP MF
Since its inception, the fund has generated a CAGR (Compounded Annual Growth Rate) of 4.75%.
Fund Manager at DSP World Mining Fund
Jay Kothari
Jay Kothari, Vice President & Product Strategist – Jay has been with DSP Asset Managers 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. He has a total work experience of 19 years and has been managing this scheme since March 2013. 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.
Jay is currently the Dedicated Fund Manager for overseas investments for the following schemes of DSP Mutual Fund.
Who should invest in DSP World Mining Fund?
Consider this fund if you:
- Strongly believe in the future growth potential of international mining, metals & industrial companies.
- Have the sectoral understanding to ‘extract value’ from changing international mining, metals & industrial sector cycles.
- Value international diversification & want to hedge your bets.
- Informed investors who can take a tactical view of the sector & know when to enter & exit.
- This scheme is suitable for investors seeking Long-term capital growth and investment in units of overseas funds that invest primarily in equity and equity-related securities of mining companies.
Why invest in this Fund?
- Offers the potential to grow your wealth by investing in the global mining sector.
- Get access to sector-leading companies that are difficult to invest in directly for Indian investors.
- It can generate high returns in the short term if the investor can take tactical bets & know when to enter & exit.
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 World Mining Fund has existed for more than ten years and has delivered a CAGR (Compounded Annual Growth Rate) of 16.63% over the last five years.
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 mining companies with high risks.
Investors need to stay invested long-term to witness the benefits of compounding.
Disclaimer:
This is not recommendation advice. All information in this blog is for educational purposes only.
