Thursday, October 19, 2006 10:42 Hrs IST
DSP-ML plans to unveil gold fund
To be launched in November 2006
DSP-Merrill Lynch (DSPML) has applied to the Securities and Exchange Board of India for introduction of their Gold Fund in Indian markets. To be launched in November of this year, this will act as a feeder to Merrill Lynch's existing global Gold Fund that invests in gold stocks. Merril Lynch (ML) will raise $ 100 million or Rs 450 crore from the Indian market through this open-ended scheme to fund gold-based companies.
The money will be invested in mid-sized companies with market capitalisation of less than Rs 4,500 crore. DSPML will focus on the agrispace, auto ancillaries, media and pharma companies in this segment. While DSPML's asset under management (AUM) has risen from Rs 170 crore in 2002 to Rs 11,466.85 crore in September 2006.