A new fund named the DSP Merrill Lynch Natural Resources and New Energy Fund has recently been launched by the DSP Merrill Lynch Fund Managers Ltd. The officials of the company have informed that the new fund is actually an open ended equity growth scheme and the scheme will invest in the companies that operate in the natural resources, energy and new energy sectors. The officials added that the sectors would also include the base metals, other minerals and commodities, water and agriculture, and the energy sector, including oil, gas and coal. They said that the renewable energy and alternative fuels is also included in the new energy sectors.
According to a top executive from the company, the new DSP Merrill Lynch Natural Resources and New Energy Fund will invest at least 65 per cent of the schemes corpus in the Indian companies. The rest of the 35 per cent of its funds will be invested in the Merrill Lynch International Investment funds that include the New Energy Fund and World Energy Fund. While explaining the reasons behind launching the fund, the President and Chief Investment Officer of DSP Merrill Lynch, Mr. S Naganath said, "The current rate of GDP growth witnessed in India and other emerging economies is likely to spur significant demand for natural resources and energy".
Mr. Naganath has elaborated their thoughts further and said, "In addition the world is beginning to address concerns for the environment due to global warming which has resulted in increased interest in the areas of alternative energy. A combination of these sectors makes the theme for natural resources, energy and new energy a sustainable investment theme for the long term". He informed that the new fund offer will open on 3rd March and will close on 27th March. The companies will have to submit a minimum application amount of Rs 5,000 and in multiples of Re 1 thereafter, in case of the regular plan and it would be Rs 5 crore and in multiples of Re 1 thereafter, in case of the institutional investment.
A source related to the fund launching further informed that the scheme is having both growth and dividend options that include the payout dividend and reinvest dividend option. The sources said that the entry load for the investments, less than Rs five crore is set at 2.25 per cent and the company has not set any entry load for the investments of Rs 5 crore and above. The exit load has been set at one per cent, provided the holding period is less than 6 months and it would be 0.50 per cent if the holding period is less than 12 months. The source concluded by saying that there would be no exit load in the case of a holding period that is greater than 12 months.
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| Posted : 2/27/2008 |
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