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Shashi Ashiwal

Searching gold mines: Mr Hemendra Kothari, Chairman, DSP Merrill Lynch Fund Managers Ltd, and Mr S. Naganath, President and Chief Investment Officer, at a press conference the launch “DSP Merrill Lynch World Gold Fund” in Mumbai on Thursday. –

Our Bureau

Mumbai, July 19 DSP Merrill Lynch Fund Mangers Ltd has launched a feeder fund called DSP Merrill Lynch World Gold Fund, an open-ended fund of funds scheme, to invest in equity shares of gold mining companies through the units of Merrill Lynch International Investments Fund – World Gold Fund (MLIIF – WGF). The scheme, which is unlike the recent gold exchange traded funds launched in the country, opens on July 25 and closes on August 23.

MLIIF-WGF, an open-ended scheme, was launched in 1994 and manages assets of over Rs 21,000 crore. The scheme has been AAA rated by S&P fund Research and Forsyth Partners and is managed by Mr Graham Birch and Mr Evy Hambro.

The fund management team at DSP Merrill Lynch said as gold prices witness a steady rise due to the increasing demand – supply gap, the profitability of gold mining companies tends to increase. “The investing in gold mining companies offers investors the upside opportunity through organic or M&A growth and leverage on the increasing price of the gold,” a statement said. The minimum investment in the fund is Rs 5,000. The fund will be capped at the RBI limit of $200 million. The fund will offer the systematic investment plan (SIP) route only after the NFO period and all the SIPs will be stopped once the fund reaches the $200- million limit.

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DSP’s new fund to invest in gold mining companies

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