How is the DSP Global Innovation Fund of Fund?

DSP Global Innovation Fund of Fund or DSP GIF is a Fund of Fund which will invest in a mix of active and passive funds run by experts in their respective spaces. The New Fund Offer of the scheme will open on January 24 and close for subscription on February 7.

The scheme will look to focus on innovation as its key driver and identify companies that have innovative thinking at their core, are likely to remain relevant, and have the potential to succeed in the long term. The underlying funds for DSP GIF include iShares PHLX Semiconductor Exchange-Traded Fund (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 include emerging innovation themes such as metaverse, semiconductors, blockchain, 5G, gene technology, artificial intelligence, space exploration, electric vehicles, and robotics, among others. As per the DSP MF, currently, there are very limited opportunities in the Indian listed space to participate in these emerging sectors.

DSP GIF will look for companies that fall within the three categories: leading dominators, young disruptors, and connecting enablers. The fund will give investors exposure to about 200 stocks through its underlying portfolio of active & passive funds.

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

The minimum investment during the NFO period would be Rs500, and in the multiples of Re 1, thereafter. There would be a nil exit load on the scheme. One of the best investments for a 5-7 yrs horizon.