DSP US Treasury Fund Of Fund (FoF)
An open-ended fund of funds scheme investing in units of ETFs and/or Funds focused on US Treasury Bonds
Why consider Investing in DSP US Treasury Fund Of Fund?
Potential High Yield (Interest Income):
US Yields are at elevated levels and are near 10 & 20-year highs. Investors can have an opportunity to park money at a relatively higher interest rate1
Mark to Market Gain/ Loss:
The quantum of Rate hikes in the US has been higher as compared to India; accordingly, the probability & quantum of decline in yields could potentially be higher in the US compared to India1
Rupee Depreciation Gain:
INR has depreciated vs USD over the years. Having exposure to USD can help investors earn from INR depreciation1
Active Management by Fund Manager:
Active Management of duration can help investors to navigate US interest rate cycles & potentially earn better returns2
Where exactly does it invest^?
More than 95% of the fund's asset will be invested in one or more of the below listed funds.
| Name of Underlying Funds | Category | Yield to Maturity (in USD terms) | Effective Duration (in Yrs) | Average Weighted Maturity (in Yrs) |
|---|---|---|---|---|
| SPDR Bloomberg 1-3 Month T-Bill UCITS ETF | Money Market | 5.39% | 0.2 | 0.2 |
| Vanguard U.S. Treasury 0-1 Year Bond UCITS ETF | Money Market | 5.20% | 0.4 | 0.4 |
| iShares Short Treasury Bond ETF | Short Duration | 5.33% | 0.3 | 0.3 |
| iShares Treasury Floating Rate Bond ETF | Floating Rate | 6.02% | 0.0 | 1.8 |
| iShares $ Treasury Bond 1-3yr UCITS ETF | Short Duration | 4.67% | 1.9 | 2.0 |
| iShares $ Treasury Bond 3-7yr UCITS ETF | Medium Duration | 4.31% | 4.4 | 4.8 |
| iShares $ Treasury Bond 7-10yr UCITS ETF | Long Duration | 4.27% | 7.4 | 8.6 |
The above ‘Yield to Maturity’ is based on the portfolio of the underlying fund which is dated and the same may or may not be relevant in future and should not be considered as the yield of the Scheme. The Scheme may or may not have exposure in all the underlying funds.
To know more about the underlying funds, click on the product presentation link towards the end of the page.
Know before you invest
Investing in DSP US Treasury Fund of Fund is a very high-risk strategy.
Expect short term return fluctuations.
Frequently asked questions
What is a Fund of Fund (FoF)?
A fund of fund is a type of mutual fund that uses its collective capital to invest in other mutual fund schemes/ETFs accessible in the market.
What is the taxation structure?
DSP US Treasury Fund of Fund follows debt taxation structure.
Can I do both SIP and lumpsum in this fund?
Yes, you can do both SIP and lumpsum.
Who are the Fund Managers of this fund?
Jay Kothari is the Fund manager of this Scheme.
Disclaimers
^ Source: Morningstar, Respective Funds Factsheet. Data as of 29 Feb 2024.
1 Source: Bloomberg. Data as on 31 Jan 2024
2 Source: Bloomberg, Internal.
FED: Federal Reserve
Past performance may or may not be sustained in the future and should not be used as a basis for comparison with other investments.
There is no assurance of any returns/capital protection/capital guarantee to the investors in above mentioned Schemes.
Investors should note that they will be bearing the recurring expenses of the scheme, in addition to the expenses of other schemes in which the Fund of Funds Scheme makes investments.
The investment approach / framework/ strategy mentioned herein are proposed to be followed by the scheme and the same may change in future depending on market conditions and other factors. For scheme specific risk factors, asset allocation details, please read the Scheme Information Document and Key Information Memorandum of the scheme available at the Investor Service Centers of the AMC and also available on www.dspim.com.
| Scheme Name and Type | Product Suitability | Scheme Riskometer | Benchmark [S&P U.S. Treasury Bond Index] Riskometer |
|
DSP US Treasury Fund Of Fund (An open-ended fund of funds scheme investing in units of ETFs and/or Funds focused on US Treasury Bonds) |
This scheme is suitable for investors who are seeking*
* Investors should consult their financial advisers if in doubt about whether the Scheme is suitable for them. |
|
|
The product labelling assigned during the New Fund Offer (‘NFO’) is based on internal assessment of the Scheme Characteristics or model portfolio and the same may vary post NFO when actual investments are made.
For scheme information document, click here.
For product presentation, click here.