Merrill Lynch launches New Energy fund

Mumbai, Feb 25: DSP Merrill Lynch Fund Managers today announced the launch of DSP Merrill Lynch Resources and New Engergy Fund, an open ended equity growth scheme investing in companies which form part of the Natural Resources, Energy and New Energy sectors.

Speaking to reporters here today, President and Chief Investment Officer S Naganath said a minimum of 65 per cent of the sechme's corpus will be invested in Indian companies which form a part of these sectors. The scheme also has a provision to invest a maximum of 35 per cent of its corpus in Merrill lynch International Investment Funds - New Engergy Fund and Merill Lynch International Investment Funds - World Engergy Fund and or through securities of companies domiciled overseas and principally engaged in the sectors of natural resources and alternative energy. The New Fund Offer (NFO) will commence on March 3 and close on March 27.

He said the current rate of GDP growth witnessed in India and other emerging economies is likely to spur significant demand for Natural Resources and Energy. In addition the world is beginning to address concerns for the environment due to global warming which has resulted in increased interest in the areas of alternative energy.

''A combination of these factors makes the theme for natural resources, energy and new energy, a sustainable investment theme for the long term,'' he said.

The primary investment objective of the scheme is to seek to generate capital appreciation and provide long-term growth opportunities by investing in equity and equity-related securities. In this new scheme, investors would invest minimum of Rs 5,000 and multiples of Re one thereafter, he added.

UNI