DSP World Gold Fund-Returns Analysis

DSP Merrill Lynch World Gold Fund

An open-ended fund of funds scheme, investing in gold mining companies through an international fund, with the primary objective of seeking capital appreciation by investing predominantly in units of Merrill Lynch International Investment Funds – World Gold Fund (MLIIF –WGF). The Scheme may, at the discretion of the Investment Manager, also invest in the units of other similar overseas mutual fund schemes, which may constitute a significant part of its corpus.

Returns as on 15-Jul-2008

Period For Period less than 1 Year – Absolute Return
World Gold Fund FTSE Gold Mines (CAP) Index
Since Inception 51.49 % 36.42 %

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Past performance may or may not be sustained in the future and should not be used as a basis for comparison with other investments.

The FTSE Gold Mines (CAP) Index is the adopted benchmark of the scheme. The value of the index as on 15-Jul-2008 was as follows:

FTSE Gold Mines (CAP) Index : 142185.2

The NAV as on 15-Jul-2008 was Rs 15.1490

‘NA’ indicates Non-availability of Data for the specific period.

Note: As per the SEBI standards for performance reporting, the “since inception” returns are calculated on Rs. 10/- invested at inception. For this purpose the inception date is deemed to be the date of allotment, i.e. 14-September-2007.

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7 thoughts on “DSP World Gold Fund-Returns Analysis

  1. Hi,

    I had invested in DSP Mutual fund world gold fund in the month of March 08, in the early days this fund works finely but afterwards what happened to this fund i don’t know, even when gold prices rises fund NAV was below par now. Can any body suggest me shall i continue in this fund or come out of this fund.

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  2. @Raja

    DSP World Gold Fund invests in gold producing and minning companies. It is not linked directly to spot gold prices. Slack demand for gold might even make the NAV and the value of existing stocks in the portfolio go further downwards. Since the demand for gold is decreasing the minning companies reduce the output to support their prices. There might be even lower margins. Since the prices of spot gold have reduced it makes sense to buy phsical gold or Gold ETF to extract value or price appreciation in longer term. Alternatively, additional staggered buying in the same fund from a longer term perspective could be also considered.

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  3. I would like to know maximum how much will dsp world black rock fund perform for the month of febraury and march 2009.Priya.Please reply to my e-mail id

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    • I cannot predict that. I am not an astrologer. But it is a Gold Mining MF. If the Gold Spot prices continue to rise they benefit the most. But the time lag is there between the price of spot Gold Price and production of Gold. Gold produced at lower price and sold at a higher price can increase the NAV of the DSP BlackRock World Gold Fund.

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  4. I bought units in DSP Merril Lynch gold fund in April 2008. What are my one year returns, and should I continue holding them till markets recover, say next 2 years?

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    • @VS

      Your fund had dipped to very low levels along with the rest of the markets. However, its recovery has been very fast. I would advice you to stay put. Recover your principle amount from the investment. I think it might have the potential to deliver decent returns hereon.

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