DSPML World Gold Fund invests in stocks of companies engaged in gold mining & production. The fund's assets have more than doubled in a span of 6 months, all thanks to the returns it earns...
DSPML Gold Fund's returns have given investors reasons to cheer
The previous year gave investors of the DSPML World Gold fund many reasons to smile. The fund, which listed in September, last year, has delivered 42 per cent returns since its launch. This year (till February 1, 2008), the fund, which is part of the Equity Specialty category has delivered around 8 per cent returns compared to the category's 11 per cent loss during the same period. The Sensex and Nifty were down 10 per cent and 13.4 per cent respectively during this period. In the December 2007 quarter, the fund's returns at 16 per cent were much ahead of the benchmark FTSE loss of 0.15 per cent. However this is less than the Sensex's gain of 17 per cent in that quarter.
The DSP World Gold fund does not buy gold directly but invests in stocks of companies engaged in gold mining and production world over. It does so by buying units of Merrill Lynch International Investment Funds-World Gold Fund (MLIIF-WGF). In fact MLIIF -WGF forms over 97 per cent of the fund's portfolio. The fund's good returns can be attributed more to the fact that the gold prices have peaked to a 30-year high, resulting in a bonanza for the companies in this field. A weakening US dollar and an unprecedented rise in oil prices have also made gold an attractive investment avenue. However, investors looking to invest in gold must not confuse this fund with gold exchange traded funds (ETFs), which invest directly in gold. Another difference between DSPML Gold Fund and other ETFs is that the former is managed actively.
According to the DSPML website, DSPML World Gold Fund has invested over 80 per cent in gold followed by platinum (9 per cent) and silver (5.10 per cent). As per the December 2007 portfolio, Australia based Newcrest Mining is the top holding of the fund accounting for 8.4 per cent of the fund's assets, followed by Barrick Gold (7.50 per cent), Kinross Gold (5.50 per cent) and Lihir Gold (5.20 per cent).
So far, many investors have flocked to this fund. The fund's assets under management, which stood at Rs 692 crore in September 2007, have more than doubled to over Rs 1487 crore in December 2007.
DSPML Gold Fund's returns have given investors reasons to cheer
The previous year gave investors of the DSPML World Gold fund many reasons to smile. The fund, which listed in September, last year, has delivered 42 per cent returns since its launch. This year (till February 1, 2008), the fund, which is part of the Equity Specialty category has delivered around 8 per cent returns compared to the category's 11 per cent loss during the same period. The Sensex and Nifty were down 10 per cent and 13.4 per cent respectively during this period. In the December 2007 quarter, the fund's returns at 16 per cent were much ahead of the benchmark FTSE loss of 0.15 per cent. However this is less than the Sensex's gain of 17 per cent in that quarter.
The DSP World Gold fund does not buy gold directly but invests in stocks of companies engaged in gold mining and production world over. It does so by buying units of Merrill Lynch International Investment Funds-World Gold Fund (MLIIF-WGF). In fact MLIIF -WGF forms over 97 per cent of the fund's portfolio. The fund's good returns can be attributed more to the fact that the gold prices have peaked to a 30-year high, resulting in a bonanza for the companies in this field. A weakening US dollar and an unprecedented rise in oil prices have also made gold an attractive investment avenue. However, investors looking to invest in gold must not confuse this fund with gold exchange traded funds (ETFs), which invest directly in gold. Another difference between DSPML Gold Fund and other ETFs is that the former is managed actively.
According to the DSPML website, DSPML World Gold Fund has invested over 80 per cent in gold followed by platinum (9 per cent) and silver (5.10 per cent). As per the December 2007 portfolio, Australia based Newcrest Mining is the top holding of the fund accounting for 8.4 per cent of the fund's assets, followed by Barrick Gold (7.50 per cent), Kinross Gold (5.50 per cent) and Lihir Gold (5.20 per cent).
So far, many investors have flocked to this fund. The fund's assets under management, which stood at Rs 692 crore in September 2007, have more than doubled to over Rs 1487 crore in December 2007.
