DSP Global Equity Fund: What you should know about it?

Introduction

Investing is no longer limited to domestic markets. With funds like the DSP Mutual Fund Global Equity Fund, Indian investors can now participate in global growth stories and diversify beyond India.

What it is

The DSP Global Equity Fund is a global mutual fund based in India’s GIFT City. It allows Indian investors to invest in international companies across markets like the US, Europe, and Asia. Unlike traditional feeder funds, it directly invests in global equities, offering more direct exposure. (Vested Finance)

How it is shaped

The fund is structured as a USD-denominated, actively managed portfolio regulated under the International Financial Services Centres Authority (IFSCA). It typically focuses on large, high-quality companies (market caps above $30 billion) and aims to create long-term wealth through global diversification. (anandrathigiftcity.com)

What its portfolio is

1. The portfolio includes global leaders such as Amazon, Tencent, Adyen, and Booking Holdings. (Angel One)
2. A significant portion is concentrated in a select set of companies, with top holdings forming a large share of the portfolio. (Angel One)
3. The fund may also hold cash strategically during uncertain market conditions

Why is it used

Investors use this fund primarily for:

• Global diversification (reducing dependence on Indian markets)
• Exposure to global giants not listed in India
• Long-term wealth creation in USD terms
• Access to professionally managed international investments

Global equities have historically delivered steady returns with lower volatility when diversified across regions.

How an investor invests in it

Investors can invest through platforms offering GIFT City funds using the Liberalised Remittance Scheme (LRS) (Vested Finance). The process typically involves KYC, funding in USD, and investing digitally through platforms or advisors.

Are there challenges?

Yes, a few key ones:

• Currency risk (USD vs INR fluctuations)
• Global market volatility
• Limited familiarity with international companies
• Expense ratios and tax structure at the fund level

Impact of the Iran War

The ongoing Iran war in 2026 has increased global market volatility. Rising oil prices and uncertainty have led to sharp movements in global equities (Reuters). Non-US markets have been more affected than US markets, showing uneven performance across regions.

At the same time, global equity funds have seen inflows when tensions ease, indicating that long-term investors continue to stay invested despite short-term volatility.

Summary:

The DSP Global Equity Fund is a useful tool for investors looking to diversify globally, but it comes with global risks that require a long-term perspective.