NFO review: DSP Global Innovation FoF

The international fund category is not a new kid on the block but definitely one of the most popular ones of late. The charm of overseas investing picked up, particularly after COVID made its landfall when international funds started outperforming diversified domestic equity funds such as flexi-caps. Further, there is also a growing realisation among Indian investors that investing part of their corpus in international markets can help in better diversification. Riding on the trend, there has been a flurry of international fund launches over the last year. In fact, out of the 63 funds that this category hosts as of now, around one-third were launched in 2021 alone. Now, adding another scheme to its bouquet of overseas funds, DSP Mutual Fund has rolled out a new fund offer (NFO) on January 24, 2022. It is an open-end scheme and will close for subscription on February 07, 2022. About the strategy The newly launched fund is a fund of funds (FoF) that aims to invest in marquee global active and passive funds and ETFs who, in turn, invest in innovation and technology-driven companies with a long-term horizon. As per the investor presentation, the fund seeks to invest in six funds, out of which two are passive, making nearly 30 per cent of the portfolio. As per the AMC, the weight of individual funds can oscillate between 10-50 per cent. The above indicative weightage has been decided based on multiple factors such as theme lev