DSP Mutual Fund launches DSP Global Innovation Fund of Fund

DSP Investment Managers has launched DSP Global Innovation Fund of Fund (DSP GIF). DSP GIF is a fund of funds that will invest in a combination of active and passive funds managed by experts in their respective spaces. The offer of the new program fund will open on January 24 and close for subscription on February 7.

DSP GIF’s underlying funds include iShares PHLX Semiconductor ETF, BGF World Tech fund D2 USD, iShares NASDAQ 100 UCITS ETF, Nikko AM ARK Disruptive Innovation Fund, Morgan Stanley US Insight Fund and Bluebox Global Technology Fund.

According to the fund house, this fund will focus on innovation as a primary driver and identify companies that have innovative thinking at their core. These include emerging innovation themes such as Metaverse, Semiconductors, Blockchain, 5G, Gene Technology, Artificial Intelligence, Space Exploration, Electric Vehicles & Robotics, among others. Currently, there are very few opportunities in the listed Indian space to participate in these emerging sectors.

DSP GIF is looking for companies that fall into all three categories: Core Dominators, Young Disruptors, and Connection Facilitators, the press release says. The “dominators” in their space, such as Amazon, Tesla, Apple1, are those who dominate in terms of market capitalization, market share and revenue and who have provided above-average returns to their investors. “Young Disruptors” are innovative companies that have the ability and foresight to become the next “Dominators”. Identifying and investing in those early-stage companies that have the chance to become the next Apple/Google/Tesla is a key theme of this fund. “Enablers” help dominators and disruptors scale further and faster by providing connecting products such as semiconductors or services such as programming/development that are best in class.

“Dominant firms and enablers today saw significant price appreciation due to post-Covid earnings growth. On the other hand, the disruptive innovation space is experiencing strong price corrections after running too fast. Innovation is profitable in the long term and volatile in the short term. We are on the cusp of such volatility in this space and so we want to recommend the fund through a SIP targeted NFO, helping our investors take advantage of price swings while building a long-term portfolio of focused businesses. on innovation, which are not otherwise. available in India,” says Kalpen Parekh, MD and CEO, DSP Investment Managers.

“SIP is now a proven way to invest for young Indians and they are gradually embracing global funds to diversify their fund portfolios. Through our SIP-focused GIF, we want our investors to invest in the best global companies in their In partnership with experts in the field such as BlueBox, BlackRock, Ark and Morgan Stanley funds in the field of investment in innovation and technology, we aim to offer our investors a strategic mix of various styles of funds in a single fund over 20 years, history also shows that SIP returns are better than lump sum returns, especially when these themes are reasonably priced,” adds Kalpen Parekh.

Dolores W. Simon