AIG Gold Fund tops MF scheme last week
Bangalore: In the week ended November 6, AIG World Gold Fund tops the mutual fund (MF) scheme with a growth of 5.39 percent. The current net asset values (NAV) of the fund is 
11.54. Ruchir Parekh is the Fund Manager of this open ended scheme, which had a market size of 264.46 crore as on September 30, 2009.
The primary investment objective of the scheme is to provide long term capital appreciation by investing predominantly in units of AIG PB Equity Fund Gold. The scheme may, at the discretion of the investment manager, also invest in the units of other similar overseas mutual fund schemes. The scheme may also invest a certain portion of its corpus in debt and money market securities and units of debt schemes of mutual funds, in order to meet liquidity requirements from time to time. According to mutualfundsindia.com, other funds which followed AIG Gold Fund in top list for the last week are Birla Sun Life Commodity Equities Fund, Tata Life Sciences and Technology Fund, DSP BlackRock World Gold Fund and Birla Sun Life Mid Cap Fund with a growth rate of 5.29, 5.09, 5.03 and 4.63 percent respectively.
For many of us who have been investing in financial instruments, the relentless rise of old poses a problem because we have no easy framework in which to think of gold. Till as recently as a couple of years ago, gold lived in a completely different world from stocks, funds and debt products. There was no easy way of investing in gold except for buying it as jewellery or coins and bullion trading was a mysterious world that was inhabited by a different set of species altogether. Gold investing was very much an out-of-sight and out-of-mind phenomena.
However, it is undeniable that many investors have started buying gold-backed securities of one kind of another as short-term trading opportunities. In the mutual fund space, there are actually two distinct kinds of gold-related funds available. One is the straightforward Gold ETFs. These closely track the price of gold itself and deliver profits and losses that mirror investing in physical gold. The others are a couple of equity funds (one from AIG and the other from DSP BlackRock) that actually invest not in gold but in foreign gold-related stocks, like gold mining and processing companies. Interestingly, these funds seem to act as sort of high beta versions of the gold price itself. Over the last one year, gold has gained 44 percent but these funds have gained more than twice that. Will the gold run last? If you look around, you will see as many cheerleaders as sceptics.
11.54. Ruchir Parekh is the Fund Manager of this open ended scheme, which had a market size of 264.46 crore as on September 30, 2009.
The primary investment objective of the scheme is to provide long term capital appreciation by investing predominantly in units of AIG PB Equity Fund Gold. The scheme may, at the discretion of the investment manager, also invest in the units of other similar overseas mutual fund schemes. The scheme may also invest a certain portion of its corpus in debt and money market securities and units of debt schemes of mutual funds, in order to meet liquidity requirements from time to time. According to mutualfundsindia.com, other funds which followed AIG Gold Fund in top list for the last week are Birla Sun Life Commodity Equities Fund, Tata Life Sciences and Technology Fund, DSP BlackRock World Gold Fund and Birla Sun Life Mid Cap Fund with a growth rate of 5.29, 5.09, 5.03 and 4.63 percent respectively.
For many of us who have been investing in financial instruments, the relentless rise of old poses a problem because we have no easy framework in which to think of gold. Till as recently as a couple of years ago, gold lived in a completely different world from stocks, funds and debt products. There was no easy way of investing in gold except for buying it as jewellery or coins and bullion trading was a mysterious world that was inhabited by a different set of species altogether. Gold investing was very much an out-of-sight and out-of-mind phenomena.
However, it is undeniable that many investors have started buying gold-backed securities of one kind of another as short-term trading opportunities. In the mutual fund space, there are actually two distinct kinds of gold-related funds available. One is the straightforward Gold ETFs. These closely track the price of gold itself and deliver profits and losses that mirror investing in physical gold. The others are a couple of equity funds (one from AIG and the other from DSP BlackRock) that actually invest not in gold but in foreign gold-related stocks, like gold mining and processing companies. Interestingly, these funds seem to act as sort of high beta versions of the gold price itself. Over the last one year, gold has gained 44 percent but these funds have gained more than twice that. Will the gold run last? If you look around, you will see as many cheerleaders as sceptics.