AIG WORLD GOLD FUND
FUND FACTS
Offer open: Till 15 May 2008
Scheme type: Open-ended fund of funds equity
Minimum investment: Rs 5,000; unit price: Rs 10
Loads: Entry load: 2.25%. Exit load: 1% (if less than one year)
Options: Growth and dividend (payout and reinvestment)
Investor grievances: Sonal Barot. Tel: (022) 40930000.
FUND STATS
Objective: To provide long-term capital appreciation by investing in the AIG PB Equity Gold Fund and other similar overseas mutual fund schemes.
Benchmark: Financial Times Gold Mines Total—Price Index, in US dollar is the benchmark of AIG PB Equity Gold Fund. The above converted to rupee using the RBI reference rate will be the benchmark of the AIG World Gold Fund.
Fund manager: Ruchir Parekh (Domestic investments)
70-100% Units of AIG PB equity gold fund or similar overseas mutual fund schemes
0-30% Debt
Comparable existing scheme:
Fund Name: DSPML World Gold Fund
NAV* (Rs): 14.98
3-month return(%): 11.06
Returns since inception(%): 49.78
*NAV as on 21 April. Source: NAVIndia
FUND PROGNOSIS
Idea distiller: Gold has been the fastest appreciating asset in recent times. The primary participants, gold mining companies, will benefit from the demand.
Fund house report: 14-month old AIG Asset Management Company manages funds worth Rs 3,131 crore (as on 31 March).
Returns profile: 3/5
Risk profile: 3/5
Scheme DNA:
Four fundamentals of the fund scheme:
Unique Idea - High
Return Possibility - High
Risk - High
Operability/Complexity - Medium
INVESTOR TAKEAWAYS
Who should apply: Investors who want to benefit from the global demand for gold by investing in the precious metal and in companies involved in its production.
Remember: The only other fund in India with a similar idea has in its short life span generated very good returns. But there is no assurance that this scheme would generate the same kind of returns.
