NFO: DSP Global Innovation FOF

By Morningstar |  19-01-22 | 

DSP Mutual Fund has launched DSP Global Innovation Fund of Fund (DSP GIF). 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.

This fund focuses on innovation as its key driver and identifies companies that have innovative thinking at their core, are likely to remain relevant and have the potential to succeed in the long term. These include emerging innovation themes like Metaverse, Semiconductors, Blockchain, 5G, Gene Technology, Artificial Intelligence, Space Exploration, Electric Vehicles & Robotics, among others. Currently, there are very limited opportunities in the Indian listed space to participate in these emerging sectors.

DSP GIF looks for companies that fall within the three categories: leading Dominators, young Disruptors and connecting Enablers. ‘Dominators’ in their space, such as Amazon, Tesla, Apple1 are those who lead in terms of market cap, market share & revenue and have delivered above-par returns to their investors. ‘Young Disruptors’ are innovative companies with the ability & foresight to become the next ‘Dominators’.

Identifying and investing in these early-stage companies that have the chance of becoming the next Apple/ Google/ Tesla is a key theme of this fund. ‘Enablers’ help the dominators & disruptors scale further & faster by providing connecting products like semiconductors or services such as programming/ development, that are best-in-class, states the fund house.

The underlying funds for DSP GIF 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. These funds provide a good balance between disruptive innovators and well-established, innovative dominators.

DSP GIF endeavours to give investors an exposure to ~200 stocks through its underlying portfolio of active & passive funds.

The New Fund Offer for DSP GIF opens on January 24, 2022, and closes on February 7, 2022.

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