DSP Merrill eyes Rs 150cr from new fund in Gujarat

Asset management company DSP Merrill Lynch Fund Managers Limited is targeting to moblise around Rs 2,000 crore through its Natural Resources and New Energy Fund, an open-ended equity growth scheme. Of this, it aims to generate Rs 150 crore from Gujarat.

The scheme will invest in companies, which belong in the natural resources, energy and new energy sectors.

These sectors include base metals, other minerals and commodities, water and agriculture, and energy including oil, gas and coal. The new energy sectors include renewable energy and alternative fuels.

"The recent Union Budget will give a boost to the demand across sectors and would require huge amount of natural resources and energy. Moreover, many companies are coming to India since the country offers one of the cheapest iron ore mining operations. Such factors seem to be conducive for the fund, which we hope will mobilise funds worth Rs 2,000 crore," said Apoorva Shah, senior vice-president and fund manager.

The fund will invest a minimum of 65 per cent of the scheme's corpus in Indian companies, which form a part of these sectors, and up to 35 per cent in Merrill Lynch International Investment funds which include New Energy Fund and World Energy Fund.

Investment in Indian companies will be totally into equities. The NFO opened on March 3 and closes March 27.