Skip to main content

DSP Blackrock World Agriculture Fund

DSP BlackRock's new fund offer (NFO), the World Agriculture Fund, is a fund of funds (FoF) scheme. The scheme will invest in the BlackRock Global Fund-World Agriculture Fund (BGF-WAF), that invests in equities of agricultural companies globally.

The BGF-WAF is benchmarked against Luxembourg's DAX Global Agribusiness Index. The scheme has performed in line with the benchmark in the past year (as on August 31) with returns of 20.5 per cent, whereas its benchmark has gone up 21 per cent. In the past six months, the fund's returns have fallen 7.5 per cent and its benchmark was down 6.6 per cent.

SNaganath, president and chief investment officer of DSP BlackRock, said, "Agriculture is a sector represented globally, which has sound fundamentals over the long term, given the rising imbalance between food demand and supply. We believe agriculture is an investment opportunity, with the potential for growth in the long-term." There are two more international feeder funds in India that invest in shares of agri-commodities companies abroad. Deutsche Asset Management, the mutual fund arm of Deutsche Bank, had a fund —DWS Global Agribusiness Offshore —launched in April 2010. This returned 2.49 per cent in the past year. Birla Sun Life Asset Management Companys Global Agri Fund has returned a negative 9.34 per cent. In comparison with equities, it has done better in recent times. The Sensex in the past year dipped 19 per cent.

The charges for international feeder funds are no different from what domestic fund investors would pay. The overall asset management charges are capped at 2.25 per cent. The fund invests in agricultural science companies, fertilisers, agricultural equipment, agribusiness, food processors, land & farming, forestry and allied sectors.

For investors wanting to take advantage of the agri-commodities story, this fund is a good opportunity. The international trend of investing in scrips such as Monsanto, Potash Corp, Deere, ArcherDaniels-Midland, Wilmar International etc. is an added attraction.

The move seems timely, as analysts feel prospects for the agriculture sector look bright. The agri-commodities space looks promising, as prices are likely to rise.

The disadvantage of investing in a global feeder fund is that it is treated as a debt fund and you have to pay capital gains tax. The shortterm capital gains tax (less than 12 months) is 30 per cent. The longterm capital gains tax (more than 12 months) is lower, at 10 per cent without indexation or 20 per cent post it.

A fund such as this is meant for those with a large portfolio and a capacity to bear risks and the volatility associated.

The exposure to thematic funds should be 5-10 per cent. And, to invest in these requires a more active management by the investor.

Besides the usual risk of investing in equities, there is a foreign exchange risk as well on investing in an international feeder fund.
 

Popular posts from this blog

ICICI Pru Mutual Fund Dividend

ICICI Prudential Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( Rs /unit) ICICI Pru Capital Protection Oriented Ser V Plan B-D 0.03611325 ICICI Pru Capital Protection Oriented Ser V Plan B Direct-D 0.03611325 ICICI Pru Balanced Advantage Direct-DM 0.06 The record date has been fixed as February 08, 2017. ------------------------------ ------ Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave y...
Read more

What is Financial Freedom?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)     There were many things common between our Freedom fighters. All had the Single vision (Free India), common goal (independence) and had a disciplined and focused approach. They were ready to do anything and everything and had made so many sacrifices to see India free . But the road to freedom was not easy .They had faced lot many hardships, went to jail so many times and even confronted physical and mental torture from the British. There was one more thing which proved to be an advantage to our fighters that most of them were professional lawyers. The knowledge of legal issues and its impact on our country at large has helped them counter various bills and proposed new laws by the then government. It is due to their continuous effort that we are able to achieve the goal of Independent Indi...
Read more

Hidden Bank Fees

  What Banks Hide From Customers Imagine after a peaceful and exciting holiday you receive your bank statement with steep charges. You then rush to your bank and start confronting staff members and to your dismay, you come to know that the high end debit card was charged very heavily. Wouldn't this cause damage to your finances? So remember, the world outside is full of deceptive and double cheating people. Unethical practices are always used by company sales person in order to meet the target. Credit card companies, mutual funds and bank institutions always play dirty tricks to lure customers and the practices are rampant. So here's how you should be careful while dealing with your banks: High End Debit Card Charges While opening an account with a bank you opt for a debit card with minimal charges. But later on when you upgrade your card and opt for high end debit card the annual charge rise by a good amount. Though such a card has slew of features but it all comes at a high ...
Read more

Partial withdrawal from PPF

  Public Provident Fund (PPF) account has a lock in period   If you opened a PPF account to meet your retirement needs,, think twice about withdrawing from this fund before retirement. But provided it's an emergency here are the rules. Public Provident Fund (PPF) account has a lock in period before which you cannot withdraw your money.   The partial withdrawal is allowed after the completion of 6 financial years . This means that you will be allowed a partial withdrawal from 1 April 2017. The maximum partial withdrawal allowed is the least of the following: 50 percent of the account balance at the end of fourth financial year, 31 March 15 50 percent of the account balance of the end of previous financial year, 31 March 17.   There's a loan option available on your PPF account between the fourth and the sixth financial year. You can obtain a loan of up to 25 per cent of the balance in your account. However, this will attract interest of 2 percent more than the prevailing ...
Read more

Updating a minor PAN card upon becoming adults

  Updating a minor's PAN card once they become adults A PAN card issued in the name of a minor does not contain the minor's photograph or signature, and therefore, cannot be used as a valid proof of identity. Once a minor PAN card holder turns 18, the relevant changes must be made in the PAN records. A new card is then issued bearing a photograph and signature. Application The applicant is required to fill up the "Request for new PAN card andor changes or correction in PAN data" form. The form can be filled up online by accessing NSDL's Tax Information Network website and clicking on the online PAN application tab. Information The applicant must mention the existing PAN number in the application and check the `photo mismatch' and `signature mismatch' boxes, and submit the online form. The form must also be printed out, signed by the applicant, and submitted along with two photographs. Documents Identity and address proof in the form of a copy of the app...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now