DSP Merrill to launch $100 million gold fund
07 May 2007
New Delhi: DSP Merrill Lynch Mutual Fund plans to launch an open-ended gold-linked fund in June this year to raise $100 million (over Rs 400 crore), which it will invest in its World Gold Fund programme.
The United States-based Merrill Lynch launched the World Gold Fund, with a size of more than $6 billion in 1994. It invests predominantly in global conglomerates engaged in mining of gold and other precious metals.
RBI recently raised the limit of overseas investments by domestic mutual funds to $4 billion from $3 billion, in a bid to manage over $200 billion of forex reserves.
Lahiri said DSP Merrill Lynch is also planning to launch a Focus 25 fund during this year.
The fund would invest the money in select 25 stocks across different sectors with high growth potential.
Global fund house Merrill Lynch owns about 90 per cent in DSP Merrill Lynch. Hemendra Kothari, HMK Investment and Adiko Investment together have a 10 per cent stake.
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