DSP Mutual Fund: NFO for multi asset fund of funds opens today

DSP Mutual Fund has launched the new fund offer (NFO) for the DSP Multi Asset Omni Fund of Funds today. The NFO will close on February 19. It is an open-ended fund-of-fund scheme that invests across equity, debt and commodity-oriented mutual funds and exchange-traded funds (ETFs). The fund uses DSP Mutual Fund’s internal market framework, DSP Netra for analysing market data, valuations and historical trends to assess risk and adjust allocations across asset classes. DSP Multi Asset Omni Fund of Funds will invest in a mix of equity-oriented schemes, debt-oriented schemes, and gold and silver ETFs. DSP Mutual Fund said this composition aims to balance growth and risk by diversifying across multiple asset classes instead of relying on a single source of returns. The fund will also invest in funds and ETFs managed by multiple asset management companies (AMCs), enabling flexibility for the portfolio to adjust as relative opportunities change. The fund will rebalance allocations within its structure rather than requiring investors to make frequent portfolio changes themselves. The fund house stated that during elevated market volatility, the fund can trim its equity exposure to as low as 25%, The scheme expects to allocate: 25–75% to equity-oriented schemes, 15–50% to debt-oriented schemes, and 10–50% to gold and silver ETFs. However, DSP Mutual Fund clarified that final allocations will remain at the fund manager’s discretion and will adhere to the ranges specified in the Scheme Information Document (SID), which permits: Equity-oriented schemes: 25–80%, Debt-oriented schemes: 10–60%, Gold and silver ETFs: 10–65%, and Cash and cash equivalents: 0–5%. DSP Netra serves only as one input in the investment process and does not constitute investment advice, with portfolio decisions ultimately resting with the fund manager, according to DSP Mutual Fund. The fund house also noted that investors in this fund of funds will bear both its recurring expenses and those of the underlying schemes in which it invests.