First SIP-focused NFO: DSP Investment Managers launches DSP GIF - Important pointers that investors must know

DSP Investment Managers announced the launch of the first SIP focused NFO for DSP Global Innovation Fund of Fund (DSP GIF).

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Now, the investors must be aware of certain things related to DSP GIF. They are as follows:

1) DSP GIF is a Fund of Funds (it will itself invest in different international funds) which will invest in a healthy mix of active and passive funds run by experts in their respective spaces.  

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

3) 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.

4) The Indian investors have matured and adopted SIPs as the right way of long-term investing. They invest around Rs 12000 crore every month as SIPs. Another emerging trend is diversifying globally to take advantage of innovative companies that are not present in India. However, SIP flows in Global Fund of Funds are just around Rs 200 crore out of the entire Rs 12000 crore every month.

5) 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, Apple are those who lead in terms of market cap, market share and revenue and have delivered above-par returns to their investors. ‘Young Disruptors’ are innovative companies with the ability and  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 and disruptors scale further and faster by providing connecting products like semiconductors or services such as programming/ development, that are best-in-class.

6) 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.

7) The concept of innovation is entrenched today widely across countries and sectors and it is not limited only to technology. Innovative companies are disrupting traditional models as well and gaining market cap from traditional businesses that aren’t adapting. Hence, DSP GIF has been designed as a well- diversified product, which endeavour to give investors an exposure to ~200 stocks through its underlying portfolio of active and passive funds.