DSP MF launches Multi Asset Omni Fund of Fund; NFO opens February 5

The new fund opens for subscription on February 5 and closes on February 19.

• DSP launches Multi Asset Omni Fund of Funds with dynamic asset allocation
• Fund invests across equity, debt, and commodity ETFs, using DSP Netra framework
• Subscription opens February 5 and closes February 19

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DSP Mutual Fund has announced the launch of  the DSP Multi Asset Omni Fund of Funds, a unique open-ended scheme that combines dynamic asset allocation, external fund manager selection and selective opportunistic positioning within a single portfolio.

“This is not about taking extreme or binary calls,” said Sahil Kapoor, Head – Products, DSP Mutual Fund at a media event. “The objective is to invest with marginal safety across assets, avoid known mistakes and still have the flexibility to act when opportunities are clearly visible," he said.

The fund, Kapoor explained is powered by DSP Netra, the AMC’s in-house market intelligence framework that guides decisions on asset mix, sector exposure and fund selection. Under its stated framework, the scheme will typically allocate 25–75 percent to equity-oriented schemes, 15–50 percent to debt-oriented schemes, and 10–50 percent to commodities, primarily gold and silver ETFs.

Equity exposure can be cut to the lower end of the band during periods of heightened volatility, allowing the fund to reduce risk rather than remain fully invested through market drawdowns. Asset allocation decisions are reviewed periodically, while fund manager changes are typically evaluated annually or triggered by events such as manager exits.

Unlike traditional multi-asset funds, the scheme follows a multi-manager fund-of-funds structure, investing across equity, debt and commodity ETFs, while allowing allocations across different AMCs. “Two-thirds of the active equity exposure will always be invested in non-DSP funds if that’s where the best managers are,” Kapoor said. This means that if DSP's own funds don’t qualify under the framework, they are comfortable allocating entirely to external schemes.

Fund selection, he explained will be driven by an internal scoring framework that evaluates managers on investment philosophy, consistency and portfolio construction, with valuation acting as the final filter. “If we like two or three funds in a category, we will choose the one that is cheapest on a look-through basis,” Kapoor said. “NAV discipline matters even at the fund level," he said.

On themes and sectoral ideas, Kapoor said the fund would avoid concentrated bets on narrow narratives such as defence, chemicals, EVs or tourism. “Most investors enter thematic funds at the wrong time. Even if a theme performs well, poor timing means a majority of investors don’t benefit," Kapoor explained.

Instead, thematic participation, if any, will be limited and opportunistic, typically forming a small part of the overall portfolio.

“If we participate, it will be in small doses—five to seven percent, maybe 10 percent at most if the opportunity is broader,” Kapoor said.

The scheme will invest only in active funds, index funds and ETFs, without exposure to individual stocks or derivatives. Rebalancing will be carried out within the fund structure, helping reduce tax friction for investors.

The new fund opens for subscription on February 5 and closes on February 19.

DSP said the product is aimed at investors seeking a disciplined, all-weather allocation framework rather than those looking to time markets or chase themes.