DSP Merrill Lynch Fund Managers to launch gold fund

DSP Merrill Lynch Fund Managers Ltd is planning a fund to invest primarily in shares of gold mining companies.

To be known as DSP Merrill Lynch World Gold Fund, it will open between July 25th and August 23rd and will invest the majority of assets through the Merrill Lynch International Investments Fund-World Gold Fund or other related schemes, Reuters reports.

It will charge an entry fee of 2.25 per cent for one-time investments and 1.0 per cent for entry through the systematic investment plan (SIP).

Investors wishing to redeem before six months would have to pay 0.5 per cent, with SIP members having to pay an exit fee of 1.25 per cent on redemption within two years.

S Naganath, the president and chief investment officer at DSP Merrill Lynch Fund Managers, said that the new fund would aim to collect around $200 million worth of investment.