DSP ML launches World Gold Fund to invest in Gold mining cos

Panaji, July 23 (UNI) Investing in DSP Merrill Lynch World Gold Fund (DSPML-WGF) gives more returns than investing in the very precious metal or related Exchange Traded Funds, said Company Vice President and Head of equities Soumendra Nath Lahiri.

The open-ended mutual fund scheme, that opens to public on July 25 till August 23, invests predominantly in the units of the Merrill Lynch International Investment Fund's World Gold Fund to pass on the benefits of appreciation with demand for Gold world over on rise with a shortfall in supply.

The fundamentals of Gold continued to be stronger and upsurge in purchase of gold is expected in a year. The demand is 4,000 tonnes per annum as against the 2,500 tonnes supply by the mining companies.

The efforts of respective governments world over including India, Russia and China, trying to accumulate Gold and the rise in demand from the public had bouyed the prices of Gold and this would benefit the investors much more, Mr Lahiri told mediapersons here today.

The WGF scheme, with a 12 year track record and assets of over USD 5.4 billion, had outperformed its bench mark-FTSE Gold Mines (Cap) Index since inception. It had been managed by Gram Birch.

It has holdings in 48 mining companies, 80 per cent in gold mining shares, 12.5 per cent in platimum and 1.7 per cent in diamond shares world over, particularly in South Africa, North-S America and Canada.

The WGF, he claimed offers Indian investors with a diversity of holdings abroad. The robustness of Gold price is fuelled by strong jewellery demand out of Asia and the Middle East and hence good returns from the fund in terms of growth potential of equities and the strong fundamentals of Gold.

The minimum investment in the WGF is Rs 5,000 with 2.25 per cent entry load for the New Fund Offer and 0.50 on exit load if withdrawn within 6 months.

UNI