News - Source MFI-AIG Investments has announced the launch of the AIG World Gold Fund – an open ended Fund of Funds Scheme investing in companies engaged in the extracting, processing and marketing of gold through an international fund. 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 based in Zurich. The New Fund Offer will be open for purchase from 15 April - 14 May 2008 and will re-open for ongoing purchase/redemption no later than 12 June 2008. The scheme will offer both the options: Growth and Dividend with Dividend Payout and Dividend Reinvestment facilities. 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/or units of debt/liquid schemes of Mutual Funds, in order to meet liquidity requirements from time to time. The scheme will invest 80% – 100% in units of AIG PB Equity Gold Fund and other similar overseas fund and the rest 0% - 20% in debt and money market securities and units of debt and liquid schemes of domestic mutual funds.
Views- This fund seems similar to DSPML world gold fund in concept. This would be a good option for those who want to diversify into Gold. This fund would be considered as a DEBT fund for taxation of dividends and redemptions.