Wednesday, July 9, 2008

Mirae Asset Global Commodity Stock Fund

Mirae Asset has come out with a New Fund Offering (NFO) named Mirae Asset Global Commodity fund. The timing of the fund is excellent, for the commodities are in Bullish Period of a Booming Cycle. But is the cycle going to last?.
I for one, have got my doubts, Commodity boom started in 2001 around, and commodities usually last anywhere between 8 to 12 years. So, according to me, the Boom may last a maximum of 4 to 5 years. So, you can invest in the fund, but have to time your exit well. So, the Best way of investing in the fund would to go for Dividend Payout option.

Investment is recommended, especially for those who already own sizeable chuck of Diversified Funds, to provide cushion and enhance their asset allocation.
Mirae Asset have got a good name and have performed well in South Korea. But will they succedd in India?. That has to be seen. The Fund Manager, Gopal Agarwal too is quite experienced. He used to manage SBI Magnum Comma Fund when he was in SBI Mutual Fund. That should help the fund. Also, In India there are very few Pure Play Commodity Stocks available.
When I met Mr.Gopal Agarwal, the Fund Manager, during the launch of the fund in Bangalore, he seemed to be very very optimistic about the Commodity Cycle and the success of the fund. Good luck to him.
In net, my recommendation, Invest in the fund, Go for Dividend Payout option and be prepared for a volatile ride., for commodity stocks, in turn commodity funds are very volatile by nature.
Best of luck.

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