Wednesday, August 06, 2008

Investments in tune with nature

Natural resources funds may become sustainable investments in the long run

Alladin’s magic lamp used to do it and now asset management companies (AMCs) are doing it – fulfilling wishes. With the stock market rollercoaster giving nightmares to investors; many are seeking alternative investment options. And AMCs are continuously providing them with new opportunities like real estate funds, infrastructure funds, commodities fund, world gold fund, et al. Now (thanks to the tightening of oil supply and concerns for the environment due to global warming) AMCs have found an opportunity in natural resource sector and the alternative energy sector. While Reliance and DSPML were the early birds to come out with such innovative schemes; more AMCs are now joining the fray. Such funds with focus on energy and natural resources sector are set to explore potential investment opportunities in such sectors. Also, these are “innovative products to complement the current portfolio of funds,” feels Ashwani Kumar, Fund Manager, Reliance Capital Asset Management.

At least five such funds (two from ING and one each from Tata AMC, HSBC MF and Mirae AMC) are set to hit the market in coming weeks. These funds seek to invest in companies primarily engaged in the discovery, development, production, drilling, and exploration of natural resources and capitalise on the strong demand for natural resources in the emerging economies. As per S. Naganath, President and CIO, DSPML Fund Managers.

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Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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