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Shashi Ashiwal

Mr Sunil Mehta, Country Head and Chief Executive, India American International Group, addressing a press conference at the launch of “AIG World Gold Fund” in Mumbai on Monday. —

Our Bureau

Mumbai, April 7 AIG Investments, the asset management arm of the American International Group, on Monday launched global gold fund called the AIG ‘World Gold Fund’. This open-ended fund of funds scheme, will invest in companies engaged in extracting, processing and marketing gold, through an international fund.

The new fund offer will open for purchase from April 15 and close on May 14. It will reopen for ongoing purchase/redemption no later than June 12.

The minimum investment amount is Rs 5,000.

The primary investment objective of the scheme is to provide long-term capital appreciation by a minimum investment of 80 per cent in units of AIG PB Equity Fund Gold based in Zurich.

The maximum exposure in this fund or other similar overseas fund can be up to 100 per cent.

The scheme may also invest 0-20 per cent of its corpus in debt and money market securities or units of debt/liquid schemes of domestic mutual funds.

The underlying fund AIG PB Equity Fund Gold invests primarily in shares of gold mines worldwide and in addition, up to a maximum of 25 per cent of the assets can be invested in companies engaged in extracting, processing or marketing other precious metals, gems and coloured metals.

“When gold prices rise, the profitability of gold companies tend to increase more than proportionately, thereby providing long-term capital appreciation as stocks of gold companies have the potential to outperform gold prices by a significant margin over the long run,” said Mr Saurabh Sonthalia, CEO-AIG Investments.

“The AIG World Gold Fund is an ideal investment opportunity as it will seek to provide value to investors based on the strong fundamental growth prospects of gold,” he added.

More Stories on : New Fund Offer | Gold & Silver

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