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DSP BlackRock World Mining NFO

The fund house says the scheme will invest in international mining companies

DSP BlackRock Mutual Fund will be launching a new fund offer (NFO) in the form of the World Mining Fund. It is an open-ended fund of funds (FoF) scheme.

The fund house says the scheme will be predominantly investing in the units of BlackRock Global Funds - World Mining Fund (BGF-WGF), which invests in equity securities of mining and metals companies globally, whose predominant economic activity is the production of base metals and industrial minerals such as iron ore and coal.

Slated to commence on November 23, 2009 and close on December 18, the NFO offers Indian investors a chance to diversify their portfolios by investing away from country-based asset allocation strategies. The fund invests in mining companies spread across various geographies.

BGF-WGF is one of the largest funds in its category in the world and has a long term performance track record.

In India, DSP BlackRock is known for its ability to retain its managerial talent as well as having delivered impressively through its conservative investment philosophy.

Its total assets add up to Rs 17,587 crore as of October 31, 2009. Its investments tilt towards equity is by as much as 68.57 per cent. Its position in the pantheon of Indian mutual funds is 12th as of August. In recent times it has seen its market share fall from 3.57 per cent in August, 2008 to 2.29 per cent in September, 2009.

The per unit cost is Rs 10 during the NFO. The minimum investment in the regular plan is Rs 5,000, while for the institutional plan it is Rs 5 crore. The applicable exit load is 1 per cent, if redeemed under 12 months and nil thereafter.

SIP, SWP, STP (during continuous offer) and nomination facilities are also available.

The fund house has one 5-star, rated by Value Research, five 4-star, five 3-star and three 2-star funds.

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