DSP BlackRock brings its foreign funds to India

Apart from gold funds, foreign funds—especially those that invest in Brazil—seem to have become the flavour of the season

DSP BlackRock Mutual Fund has filed an offer document with the Securities and Exchange Board of India (SEBI) to launch three global funds—DSP BlackRock Latin American Fund, DSP BlackRock World Agriculture Fund and DSP BlackRock New Energy Fund. All three are open-ended fund of funds (FoF) schemes investing in international BlackRock funds.

Global funds offer diversification benefits, by investing in stocks (bio-tech, technology, energy, agriculture and mining etc.) which an Indian investor may not be able to buy by just investing in domestic schemes. However, funds that put your money in other countries don’t necessarily offer another round of diversification. In fact, markets in countries around the world have been moving in sync. In April 2009-March 2010 the Sensex was up 77% while the MSCI Emerging Markets Index was up 74%. Non-correlated market movement is not easy to find. This is because an enormous pool of global capital is sloshing around the world looking for a slightly higher return. As with other kinds of products, foreign funds are not about returns alone. There are risks too. You are exposed to all kinds of risks unique to different countries, plagued with their own set of issues.

In 2007, as many as eight funds were launched that planned to invest overseas. These eight funds, on an average, have given returns as low as 0.1%. These include ICICI Prudential Indo Asia Equity Fund-Ret with 2.6% return; Birla Sun Life International Equity Fund-Plan A (-0.7% return); Birla Sun Life International Equity Fund-Plan B (-1.6% return); Kotak Global Emerging Market Fund (0.4% return), Fidelity International Opportunities Fund (8.7% return); Tata Indo-Global Infrastructure Fund (-7.5% return) and BNP Paribas China-India fund with -3.4% return.

DSP BlackRock Latin American Fund plans to invest in units of BlackRock Global Funds Latin American Fund (BGF-LAF). It has given a return of 14.61% over the last 5 years and 15.27% since inception (3 January 1995). This fund is in turn benchmarked to an index known as DAX Global Agribusiness which has given a return of 13.37% in the last 5 years and 13.31% since inception while the Sensex and Nifty have returned 11% (CAGR, Compounded Annual Growth Rate) over the past 5 years. And the Sensex and Nifty have returned 10% (CAGR) since January 1995.

DSP BlackRock World Agriculture Fund plans to invest in units of BlackRock Global Funds World Agriculture Fund (BGF WAF). It has given a return of 20.29% since inception. This fund is benchmarked to an index known as DAX Global Agribusiness, which has given a return of 21.14% since inception.

DSP BlackRock New Energy Fund plans to invest in units of BlackRock Global Funds New Energy Fund (BGF-NEF). It has given a return of -4.32% in last 5 years and -5.76% since inception. This fund is benchmarked to an index known as MSCI World Net Index which has given a return of -0.03% over the last 5 years and 3.75% since inception. As you can see, the performance of BlackRock New Energy Fund is not very exciting, to say the least.

Another issue is that it is hard to find the details of where exactly your money is being invested. Even Moneylife could not find sufficient data to analyse these international funds. We could only get the details of BlackRock Latin America fund. The top five holdings of BlackRock Latin America Inv A are Vale S.A. ADR, Petroleo Brasileiro SA Petrobras ADR, Itau Unibanco Holding SA ADR, Bank Bradesco ADR (all from Brazil) and America Movil S.A.B. de C.V. ADR L of Mexico.

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COMMENTS

Kunal

6 years ago

This is a good opportunity for Indian investors to get some diversification to other emerging markets like Brazil and particularly Chile.

Himanshu Chakrawarti takes over as CEO of The MobileStore

Himanshu Chakrawarti replaces Srikant Gokhale

Mumbai-based The MobileStore, a mobile solution retail chain of multi-brand and multi-service telecom outlets and part of the Essar Group, today announced that Himanshu Chakrawarti has taken over as the new chief executive officer of the retail chain.

An alumnus of IIT Kanpur and IIM Bangalore, Himanshu joins the Essar Group from Tata-owned retail chain Landmark, where he served as the chief operating officer.  He replaces Srikant Gokhale, who has moved on to pursue his other professional interests.
 
“We are very happy to welcome Himashu to the Essar family. Himanshu brings with him a rich exposure of multi-category retail, having handled a purely private label business (Westside), a supermarket/hypermarket foray (Star Bazaar) as well as a niche retail segment (Landmark books).

Himanshu will provide vital strategic lead to take The MobileStore to the next level of accelerated growth, which now includes consumer durables and information technology retail also,” said Alok Gupta, CEO, Essar Retail.

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CWG scam: Kalmadi, two others sent to 14 days judicial custody

The court accepted the CBI’s plea which said that the accused may be remanded to judicial custody in the “interest of effective and proper investigation of the case”

New Delhi: A Delhi court on Wednesday remanded sacked Indian Commonwealth Games (CWG) Organising Committee (OC) chairman Suresh Kalmadi and two others, arrested on charges of cheating, conspiracy and corruption in the award of Games related contracts, in 14 days judicial custody, reports PTI.

Special judge Dharmesh Sharma sent Mr Kalmadi, OC joint director general (sport) ASV Prasad and OC deputy director general (procurement) Surjit Lal to judicial custody till 18th May after the CBI said that some important witnesses are yet to be examined.

“The investigation of this case is at crucial stage.

Some important witnesses are yet to be examined. The role of accused persons Mr Kalmadi, Mr Prasad and Mr Lal is of serious nature,” the Indian premier investigative agency, Central Bureau of Investigation (CBI) said.

The court accepted the CBI’s plea which said that the accused may be remanded to judicial custody in the “interest of effective and proper investigation of the case”.

Mr Kalmadi, Mr Prasad and Mr Lal were arrested by the CBI on 25th April for allegedly awarding illegal contract to a Swiss firm for Timing-Scoring-Result (TSR) system for the mega sporting event last year causing a loss of Rs95 crore to the exchequer.

Earlier, the court had remanded the trio to eight days of CBI custody after the agency had submitted that various incriminating documents regarding their role in awarding the contract had been collected and they needed to be confronted with them.

The CBI had said that Mr Kalmadi and his two associates were evasive and not co-operating with the probe agency.

Mr Kalmadi, suspended Congress MP from Pune, and the two other officials have been booked under sections 120 B (conspiracy), 420 (cheating), 467 (forgery of valuable security), 468 (forgery for purpose of cheating) and 471 (using as genuine a forged document) of the IPC besides other relevant sections of the Prevention of Corruption Act.

Mr Kalmadi’s arrest had come weeks after his close aide and OC secretary general Lalit Bhanot and director general VK Verma were taken into custody in the same case. Mr Bhanot and Mr Verma are presently in judicial custody.

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COMMENTS

Paul

6 years ago

Belated arrest of Mr.Kalmadi.
When will Ms.Sheila Dixit be arrested?

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