DSP Gold Fund offers dual benefit to investors

Bangalore, July 20 (UNI) For investing in DSP Merrill Lynch 'World Gold Fund', the Company offers the investor the dual benefit of growth potential of equities as well as the strong fundamentals of gold.

Talking to newspersons here, DSP President and Chief Investment Officer S Naganath said every per cent of rise in gold prices would result an increase of two per cent in gold share prices.

He said the World Gold Fund offered by DSP Merrill Lynch would opens on July 25 and close on August 23, could bring much better returns than investments in NIFTY or physical GOLD. ''While Rs one lakh invested in 1994 in NIFTY had grown to Rs 3.65 lakhs and physical gold to Rs 2.2 lakhs, the 12-year-old DSP gold fund had gained Rs 4.9 lakh to its investors,'' he said.

The official said the open ended actively managed fund would be capped at USD 200 million or at around Rs 800-810 crore and it would be invested in the global gold mining companies.

''Demand of gold is increasing while supply is stagnant and showing a slightly declining trend. Hence the outlook for gold equity is very positive,'' he added.

UNI