Mutual Fund News : DSP Mutual Fund Launches DSP Global Innovation Fund of Fund

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DSP Mutual Fund has launched DSP Global Innovation Fund of Fund.

It is an open-ended fund of fund scheme investing in Innovation theme.

DSP Global Innovation Fund of Fund (the Scheme) is a Fund of Funds scheme with the primary objective to seek capital appreciation by investing in global mutual funds schemes and ETFs that primarily invest in companies with innovation theme having potential for higher revenue and earnings growth and the Scheme may also invest a certain portion of its corpus in money market securities and/or money market/liquid schemes of DSP Mutual Fund, in order to meet liquidity requirements from time to time.

Under normal circumstances, DSP Global Innovation Fund of Fund will hold an allocation of 95% to 100% of its assets in Units of Innovation funds as listed below, and 0% to 5% of its assets in Money market securities and/or units of money market/liquid schemes of DSP Mutual Fund.

The Scheme intends to invest in the following Innovation Funds:

  1. iShares PHLX Semiconductor ETF [seeks to track the investment results of the PHLX Semiconductor Sector Index (the “Underlying Index”), which measures the performance of U.S.-traded securities of companies engaged in the semiconductor business, as determined by Nasdaq, Inc. (the “Index Provider”). The Underlying Index includes companies engaged in the design, distribution, manufacture and sale of semiconductors. The Underlying Index may include large-, mid- or small capitalization companies]

  2. BGF World Tech fund D2 USD [offers a diversified exposure across all the sub-sectors in the technology space including hardware, software and internet and across multiple geographies. It is the flagship Active Technology sector fund managed by the team at BlackRock. invests globally at least 70% of its total assets in the equity securities of companies whose predominant economic activity is in the technology sector.]

  3. iShares NASDAQ 100 UCITS ETF [The Nasdaq 100 index since its inception in 1985 is a large-cap “growth equities” index and includes 100 of the top domestic and international nonfinancial companies based on market capitalization. It seeks to track the performance of an index composed of 100 of the largest non-financial companies listed on the NASDAQ Stock Market]

  4. Baillie Gifford Worldwide Long term Global growth fund [The UCITs based fund is a purely stock-driven, unconstrained global equity strategy focused on investing in exceptional growth companies. The fund looks to invest in companies having scope to grow to multiples of their current size and has the potential to transform the returns for investors over time.]

  5. Nikko AM ARK Disruptive Innovation Fund [Nikko AM ARK Disruptive Innovation fund is an actively managed fund that seeks long-term growth of capital by investing under normal circumstances primarily (at least 65% of its assets) in domestic and foreign equity securities of companies that are relevant to the Fund’s investment theme of disruptive innovation. Companies within ARKK include those that rely on or benefit from the development of new products or services, technological improvements and advancements in scientific research relating to the areas of DNA technologies (‘‘Genomic Revolution”), industrial innovation in energy, automation and manufacturing (‘‘Industrial Innovation’’), the increased use of shared technology, infrastructure and services (‘‘Next Generation Internet’), and technologies that make financial services more efficient (‘‘Fintech Innovation’’).]

  6. Morgan Stanley US Insight Fund [The investment philosophy of the fund revolves around evolution and innovation as it seeks to investment in companies focused on innovation. Disruptive innovation is one of the primary focus areas of the fund. With global business landscape witnessing disruption in technology, customer engagement, inventory management and advent on new sectors this fund is geared towards investing in such opportunities as they arise.]

  7. Bluebox Global Technology Fund [Its investment style is focused more on “Enablers” in Innovation space over “Disruptive companies”. The Direct Connection of computers to the real world has enabled the technology revolution of the past 15 years, driving an acceleration in tech adoption simultaneously across all industry verticals. With every other industry investing its excess returns in technology, IT sector can continue to outperform the broader market as it steals the growth from the rest of the economy. The Fund focuses on the companies enabling Direct Connection, giving it exposure to the most exciting developments in the sector without needing to chase over-hyped themes or invest in over-valued stocks.]

As per the Scheme Information Document, DSP Global Innovation Fund of Fund will invest predominantly in units of global mutual funds schemes and ETFs that primarily invest in companies with innovation theme.

The Scheme may also invest a certain portion of its corpus in money market securities and/or money market/liquid schemes of DSP Mutual Fund, in order to meet liquidity requirements from time to time.

DSP Global Innovation Fund of Fund’s performance will be benchmarked against MSCI All Country World Index-Net Total Return.

The MSCI All Country World Index - Net Total Return is a market capitalization weighted index designed by by Morgan Stanley Capital International (MSCI) to provide a broad measure of equity-market performance throughout the world. Index comprises of stocks from 23 developed countries and 26 emerging markets capturing the investible universe of global companies.

DSP Global Innovation Fund of Fund will be managed by Mr Jay Kothari and Kedar Karnik.

The NFO opens for subscription on January 24, 2022 and closes on February 07, 2022. The scheme will reopen for continuous Sale and Repurchase within 5 business days from the date of allotment.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 500 and any amount thereafter.

The fund offers Regular Plan and Direct Plan having Growth Option and Payout of Income Distribution cum Capital Withdrawal Option (Re-investment and Pay-out facility).