DSP Global Equity IFSC Fund
Index-agnostic, GIFT City-based USD global equity fund holding 30-50 large-cap stocks bought at a 30-40% discount to fair value, open to Indian residents.
What This Strategy Does
CW Expert Research Notes
Valuation-Disciplined, Differentiated Global Portfolio
The fund buys quality businesses at a 30-40% discount to estimated fair value, targeting earnings growth of at least 6-7% and a shareholder yield of 2-4%. The mandate is index-agnostic, with 31 holdings led by Amazon and Taiwan Semiconductor Manufacturing at 5.8% each. China holds 15.1% of the portfolio, a meaningful allocation relative to a US-weighted global index. USD exposure also helps investors address US inflation and rupee depreciation, which has run at roughly 3.7% a year.
Cash Allocation and Cost Considerations
About 25.7% of the portfolio sits in cash, which can restrain participation in a strong market. The expense ratio is up to 1.75%, with a 1% exit fee within 24 months. Short-term gains held under 24 months are taxed at 42.74% at the fund level, against 14.95% for longer holdings, so a holding period of two years or more is important.
Performance and Risk Analysis
Historical returns, volatility patterns, and how this fund has performed relative to its benchmark.
Benchmark Performance Comparison
Detailed Risks
Concentration and Market Risk
The fund is fully invested in equities and holds a focused portfolio of 30-50 stocks, so a setback in a few large holdings can move overall returns noticeably. Technology, internet and consumer names dominate the portfolio, which increases sensitivity to a broad derating of these sectors. Meaningful exposure to China and Taiwan adds geopolitical and regulatory risk. Global equities have historically experienced deep drawdowns, and a stronger rupee can reduce returns for Indian investors even when the underlying stocks perform well.
Cost, Liquidity and Who Should Be Cautious
A substantial cash allocation cushions falls but can restrain participation in a strong market. The expense ratio, early redemption fee and high fund-level tax on short-term gains reduce net returns for investors who exit early. The fund is suitable only for investors with a long horizon and the capacity to withstand a significant temporary loss. It is not appropriate for investors who need capital protection, regular income or near-term liquidity.
Strategy Details
A closer look at the investment thesis, portfolio construction, and current holdings.
Core Investment Theme
The portfolio is built around global technology, internet and consumer platforms bought at reasonable valuations. Media and Entertainment is the largest sector at 17.1%, followed by Financial Services at 16.3%. The top holdings are Amazon and Taiwan Semiconductor Manufacturing at 5.8% each, followed by Adyen at 5.0%, reflecting a focus on durable franchises with long-term earnings growth.
Broader Market View
Market Backdrop and Opportunity
Impact on the Fund and Headwinds
Investment Style & Process
Style Classification
Portfolio Expression and Market Behaviour
Portfolio Holdings Overview
Top Stock Holdings
Fund House Management
The asset management company’s track record, AUM scale, and fund manager credentials.
Fund Manager Track Record
Natraj Sankaranarayanan
Natraj Sankaranarayanan brings over 25 years of experience across India and global equity markets. He currently leads global equity strategies at DSP, with prior experience managing India and emerging market portfolios. He is supported by Jayesh Jain, who adds strength in global research and special situations investing.
Manager's Investment Philosophy
The manager treats each investment as the purchase of a whole business and defines risk as permanent capital loss, not short-term price swings. The focus is on resilient, long-lived businesses that dominate their niches, chosen by asking what will not change over the next ten years, and narratives are avoided. Fair value estimates do not move with market cycles unless the view on a company or sector changes permanently, and positions are trimmed or exited as they reach full value. The manager stays agile, recognising that markets can defy even thorough research. Lead manager Natraj Sankaranarayanan links returns to governance, business potential, management execution, margin of safety and a measure of luck.
Giriraj Bissa
Co-Portfolio ManagerGiriraj Bissa is a Fund Manager at DSP Fund Managers IFSC Private Limited, where he is part of the team managing investment strategies at GIFT City, Gujarat. He has over 18 years of experience in the financial services industry, with expertise in equities, trading and arbitrage across equity, foreign exchange and commodity markets. Before joining DSP, he held roles at organisations including ITI Long Short Equity Fund and Edelweiss Tokio Life Insurance. He holds a Bachelor’s degree in Management Studies with specialisation in Finance and International Finance from the University of Mumbai, a Diploma in Business Management from ICFAI, and an MBA from NMIMS. His professional background includes capital markets, derivatives and currency trading
CW Expert Take
DSP applies a disciplined, valuation-led process, treating risk as permanent capital loss and avoiding market narratives. It backs this with regular management meetings, channel checks and in-house financial models, and manages over USD 700 million in global equity across its schemes. The lead manager has 25 years of experience, including five years in global emerging markets. A limitation is that the global active track record is short, with only about USD 160 million managed through active stock selection and a small team.
Firm Overview
Investment Philosophy & Approach
Core Belief and Practice
The fund holds that long-term wealth comes from owning resilient, long-lived businesses bought at sensible prices, treating risk as permanent capital loss and not short-term price swings. The mandate puts this into practice through a 30-50 stock portfolio, a US$30 billion minimum market cap and exclusions of banks, lenders, tobacco, gambling and poorly governed companies. New positions are sized at 2-6% at cost, and entry is targeted at a 30-40% discount to estimated fair value. Unlike an index-linked global fund, it follows no benchmark. Unlike a thematic or growth-led global fund, it puts valuation ahead of narrative.
Mandate Boundaries and Time Horizon
The fund invests in global stocks listed or domiciled outside India, or in GIFT City, with focus on the USA, Europe including the UK, Hong Kong, Taiwan, South Korea, Japan and Canada. It is long-only and denominated in USD. The philosophy needs a long horizon, ideally five years or more, because compounding and valuation mean reversion take time.