DSP BlackRock has launched the World Mining Fund, an open-ended fund of funds that will invest in BlackRock Global Funds’ World Mining Fund. For Indian investors this new fund offers an opportunity to invest in the world’s premier mining companies. As Kolkata-based mutual fund analyst Prasun Mukherjee says: “The biggest companies in the mining sector are not Indian. If you want exposure to this sector, the best option is to go for global companies.”
Investment rationale
According to the fund house, the rationale for investing here is as follows:
Demand drivers. The world economy is recovering after the debacle of 2008. Soon while the developed economies are expected to show expansion, countries like China and India are expected to revert to their trend level of growth since 2000. Initially growth will be supported by the fiscal stimulus that countries have launched. “Close to 75 per cent of the stimulus was to be spent on areas like infrastructure creation that would consume commodities,” says Pankaj Sharma-executive vice president, DSP BlackRock Mutual Fund. By next year private consumption is expected to revive. As world economic growth gathers pace, industrialisation and infrastructure creation will drive the demand
Article source: http://www.indianexpress.com/news/ride-the-commodity-boom/547697/
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