Mar 21, 2008

Mutual Fund - NFO Details - DSP Merrill Lynch Natural Resources & New Energy Fund

DSP Merrill Lynch Natural Resources & New Energy Fund

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The growing economies like India, China and Vietnam have increased the demand for energy and natural resources. The supply of these resources is not commensurate to its demand and almost negligible hope of new discoveries, should take the prices of these resources to new highs.

Investment Strategies: DSPML has brought out many new and innovative products in the past like DSP TIGER Fund which have surpassed all expected returns. Now it plans to tap the energy sector world wide and plans to invest major chunk of its funds in India which is growing at a very fast pace. Other than India it also plans to harness good returns by tapping International Energy and Natural resources market by putting 35% of its funds in BlackRock Energy fund which is the largest quoted asset management company in the world and has a successful past of launching many Energy funds and manages natural resources sector funds in excess of $42.2 billion.

Key Features :

  • Investment in growing energy sectors
  • Demand High, Supply Low-Positive outlook
  • Growing economies are nurturing more demand for energy

The various areas of Investment

Major focus areas of investment that the fund will look at are

1 Natural resources Theme:

  • Base Metals
  • Water
  • Agriculture
  • Commodities

2. Energy

  • Oil
  • Gas
  • Coal

4. New Energy

  • Renewable Energy
  • Alternative Fuels


Its main strategy is to take advantage of strong growing economy of India which will be fuelled by high energy demands. As more and more people are moving to urban areas, demand for energy has increased and increased participation of private sector has also improved the prospects of this sector. The Fund aims to benefit from the consumption story of India and other emerging markets. As these economies grow, the demand for natural resources and other forms of energy will also increase.

Mergers and acquisitions in these sectors has also led to consolidation and the values of these companies have also improved

Target Investors:

Investors with moderate risk appetite who are looking at long term investment horizon and also those investors who believe in the long term growth story of India should consider investing.

Fund Facts:

Options available:

  • Growth
  • Dividend


Payment Plans:

Minimum Rs.5000/- in regular plan

Minimum Rs.5 crores in Institutional Plan

Load structure:

Entry Load: 2.25% for investments less than Rs.5 Crores

Exit Load :

< 6 months:1%

>=6 months to <12 months: 0.50%

>=12 months: Nil

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