Friday, August 03, 2007 11:11 Hrs IST
DSP ML MF to raise 10% of targeted cap from Gujarat
Expecting to raise Rs 800 crore from overall market in India
At the launch of DSP Merrill Lynch World Gold Fund the fund house expects to raise 10% from the Gujarat market of the target of Rs 800 crore it aims to raise from the Indian market.
The fund expects to raise Rs 800 crore from the overall market in India. The fund collected will be invested into the parent company’s fund — Merrill Lynch International Investments Fund - World Gold Fund (MLIF - WGF) and nearly 2-3 % will be managed by the DSP Merrill Lynch to maintain liquidity for some redemption if required.
DSP Merrill Lynch World Gold Fund is fund-of-fund scheme, where in the DSP will be investing the money raised through these mutual fund schemes into the fund of its parent company’s mutual fund ‘World Gold Fund’.
The World Gold Fund of the Merrill Lynch is a fund, where in the money is invested into the stocks of the gold mining companies and not into the gold directly. The fund is an open-ended fund-of-funds scheme investing in gold mining companies through an international fund with a primary investment objective of seeking capital appreciation by investing predominantly in the units of Merrill Lynch International Investments Fund — World Gold Fund (MLIF - WGF). This scheme is open ended and not an Exchange Traded Fund.