Have you ever thought about investing beyond Indian markets? DSP Mutual Fund offers a way to do just that. Their global investment strategy will let you get into international companies and sectors, help you diversify your portfolio, and potentially boost returns. In this article, let’s take a look at DSP Mutual Fund’s global investment strategy and understand why you should consider it!
What is a DSP Mutual Fund?
DSP Mutual Funds is one of India’s leading asset management companies. It was established in 1996. It’s managed by DSP Investment Managers Pvt. Ltd., which is part of the renowned DSP Group, a financial leader with roots going back to the 1860s.
The fund house manages assets worth over ₹1.5 lakh crore, serving more than 50 lakh investors across the country. They offer a diverse range of over 50 mutual funds+ schemes, like equity, debt, hybrid, and international funds, catering to various investment goals and risk-taking abilities.
What sets DSP apart is its commitment to a “professional management, family ownership” model. This approach combines the lightness and innovation of a professionally managed firm with the long-term vision and stability of a family-owned business.
Their core values emphasize putting investors first, maintaining honesty and transparency, and setting realistic expectations to build trust and deliver consistent performance.
What is DSP’s Global Investment Strategy?
DSP Mutual Fund gives Indian investors access to global markets through its international funds. These funds invest in overseas companies and sectors, allowing you to benefit from global growth trends.
It adopts a Fund of Funds (FoF) approach for its global investments. This means they invest in other mutual funds or ETFs rather than directly in individual stocks. This strategy allows investors to gain exposure to a diversified portfolio managed by global experts.
For instance, the DSP Global Innovation Fund of Fund invests in a mix of global funds focusing on innovation-driven companies. The DSP Global Allocation Fund of Fund also seeks to provide a balanced investment by allocating assets across global equities, fixed income, and money market instruments.
This fund aims to adapt to changing market conditions by adjusting its asset allocation strategy accordingly.
By leveraging the expertise of established global fund managers and diversifying across sectors and geographies, DSP’s global investment strategy provides Indian investors with opportunities for long-term capital appreciation while managing risk effectively.
Key Funds in DSP’s Global Portfolio
DSP Global Innovation Fund of Fund
This fund focuses on companies leading in innovation. It invests in sectors like biotech, fintech, e-commerce, and more. The fund includes holdings in companies such as Tesla, Apple, and Microsoft.
DSP Global Allocation Fund of Fund
A diversified fund that invests in global equity and fixed income funds/ETFs. It aims to balance risk and return by allocating assets across various sectors and geographies.
DSP US Flexible Equity Fund
This fund provides exposure to the US mutual funds. It invests in funds/ETFs that focus on US companies, offering a way to participate in the growth of the world’s largest economy.
Why Consider Investing Globally?
Investing globally will help spread risk. If one market underperforms, gains in another can balance your losses. Global funds will allow you to invest in sectors and companies not available in India, like advanced tech firms and global innovators. Investing in foreign assets can also provide a hedge against the depreciation of the Indian rupee.
However, you should keep in mind that global investments can be volatile. Market fluctuations, currency changes, and geopolitical events can impact returns.
SEBI has also set limits on overseas investments. For example, DSP had to adjust its Global Innovation Fund’s investments due to these caps.
Conclusion
DSP Mutual Fund’s global investment strategy is like a gateway to international markets. By investing in their global funds, you can diversify your portfolio and make your way into global growth opportunities.
However, it’s essential to understand the risks and have a long-term investment approach. Always do your research before investing.
Leave a Comment
You must be logged in to post a comment.