DSP Merrill awaits nod for gold fund

Indian retail investors can own shares of global gold mining companies, if a proposed mutual fund scheme of the DSP Merrill Lynch Fund Managers gets regulator's approval.

Leading fund house DSP Merrill Lynch Fund Managers, which has filed draft document for a World Gold Fund, is exploring opportunities in non-conventional fund ideas like investing overseas in gold, gold mining, energy and alternative energy and related sectors.

DSPML Fund Managers proposes to raise funds from Indian markets and invest in global gold minining companies under its Merrill Lynch Gold Fund.

"There can always be opportunities for non-conventional funds that include investing in sectors like gold, energy and alternative energy sources located in other geographies like Latin America or Eastern Europe. It depends on fund manager's view which sectors he wants to add in his portfolio.

With overseas investment limits for MFs expanding, the fund houses can tap these sources," S Naganath, president and chief investment officer of DSP Merrill Lynch Fund Managers Ltd said.

Currently, there are only two funds, which have launched schemes initiating overseas investment. In its mid-term review of the annual credit policy, the Reserve Bank of India recently allowed the mutual funds to invest $ 3 billion overseas, raising the earleir limit of $ 2 billion.

Naganath said: "It is true that the limit has not been completely used. But, as we see growth in economy, the share of equity investment amongst total savings is on the rise. It means as the equity exposure will rise, more funds can tap market and come up with other investment ideas like investing in BRIC countries."

Rakes in Rs 1400 crore from mid-cap fund

Meanwhile, the fund house today said that it moped up Rs 1,400 crore from its recently-launched Small and Mid-cap fund, the biggest ever collection by any similar fund and also the highest by the fund house.

DSPML, which launched the Small and Mid-cap fund almost after two and half years following its TIGER (The Infrastrcture Growth and Economic Reforms) fund, hopes to launch its two funds (World Gold fund and ELSS fund) by end of the year.