DSP Merrill Lynch eyes smaller cities

With the launch of World Gold Fund, DSP Merrill Lynch Fund Managers Ltd, hopes to garner 10-15 per cent of the total investment, under this fund, from Punjab.

It is worth noting that the fund house would retain $200 million through the scheme, and after getting approval from Securities and Exchange Board of India (Sebi), it can further raise investment through this scheme.

Also, it is targeting smaller cities in an aggressive manner and has plans to open offices in Ludhiana, Kanpur, Jamshedpur and Bhubneshwar.

Though this new fund, it would indirectly invest in gold mining companies of North America, South Africa and Australia with the primary investment objective of seeking capital appreciation by investing predominantly in the units of Merrill Lynch International Investments Fund-World Gold Fund.

The northern region, comprising Delhi, Punjab and Uttar Pradesh, is lucrative market for the company, and it hopes to attract 25-30 per cent of the total investment under this fund.

Ajit Menon, senior vice-president, Head Channel (Sales) said, "In the smaller cities lot of new investors are yet to be tapped so we are focussing on these markets."

He said, "Till December last year, we were managing assets over Rs 13,000 crore and now we are managing assets in excess of Rs 15,000 crore (assets under management)."