Investing in gold has always been seen as a safe haven strategy, especially during economic uncertainty. But in today’s time, instead of simply buying physical gold or gold ETFs, investors have a new option – investing in global gold mining companies through mutual funds. At present, gold investment can be very profitable as gold prices are rising.
One such fund is DSP World Gold Fund of Fund – Regular Plan Growth, which provides diversified exposure to the international gold equity market. Heavy investment from global giants like BlackRock makes this fund highly interesting. Due to its consistent performance, it has successfully attracted the attention of investors.
Fund Overview
DSP World Gold Fund of Fund is an open-ended Fund of Fund scheme. It mainly invests in BlackRock Global Funds. At the fund manager’s discretion, it may also invest in other overseas gold-focused mutual funds. With over 70% investment in BlackRock, the fund falls under a high-quality category and is considered a premium-grade fund.
Through this structure, Indian investors can invest in global gold mining companies without dealing with the complexity of foreign markets.
- Fund House: DSP Asset Managers Pvt. Ltd.
- Fund Manager: Mr. Jay Kothari (since March 2013)
- Launch Date: 14 September 2007
- NAV (as on 5 June 2025): ₹31.65
- AUM: ₹11,627.94 million (April 2025)
- Minimum Investment: ₹100
- Expense Ratio: 2.35%
- Exit Load: NIL
Investment Objective of DSP World Gold Fund
The fund’s main objective is long-term capital appreciation and investor growth, which it achieves by investing in international mutual funds focused on gold mining companies.
By investing in well-managed funds like BGF World Gold Fund and VanEck Gold Miners ETF, DSP offers exposure to gold exploration, mining, and production companies. Thus, it is viewed as a viable gold investment option.
Fund Performance
The DSP World Gold Fund has performed well in recent months and years – mostly due to rising gold prices and favorable global trends.
Trailing Returns:
- 3 Months: 30.82%
- 6 Months: 45.13%
- 1 Year: 66.61%
- 3-Year CAGR: 22.82%
- 5-Year CAGR: 12.76%
In Q1 of 2025 alone, the fund delivered 31.17% returns, which is quite impressive.
Past Annual Returns:
- 2020: 31.41%
- 2021: -8.99%
- 2022: -7.65%
- 2023: 6.97%
- 2024: 15.94%
- 2025 (YTD): 47.06%
This clearly shows that the fund is cyclical – it gives high returns in a gold bull market but also undergoes correction in downturns. Therefore, investment should always consider both sides of the coin. DSP fund is also not immune to market risk. It corrects with market conditions. However, its beta is very good, which is why this fund is delivering very good returns.
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Portfolio Composition
The DSP World Gold fund of Fund’s portfolio is mainly invested in two holdings:
- BlackRock Global World Gold Fund: 78.48%
- VanEck Gold Miners ETF: 20.57%
This means 99.05% of total assets are invested in these two holdings – providing strong exposure to the global gold mining sector. These holdings are a strong investment whose effect is clearly visible in the fund’s returns. Gold prices have shown significant growth in recent years, which has contributed to the fund’s performance. Since gold prices are expected to rise further, investing in this fund is seen as a great opportunity.
Asset Allocation (April 2025):
- Equity: 91.10%
- Cash & Others: 8.86%
- Bonds: 0.04%
The equity portion is 100% focused on Basic Materials, especially gold mining.
Market Capitalization Exposure
- Mid Cap: 45.39%
- Large Cap: 29.03%
- Small Cap: 14.75%
- Giant Cap: 9.61%
- Micro Cap: 1.22%
This diversified exposure maintains a balance between stability and growth.
Geographic Exposure
The DSP World Gold fund of Fund’sassets are globally diversified, especially in the Americas and Australasia regions.
- Canada: 65.87%
- USA: 8.32%
- Australia: 11.87%
- Africa: 7.58%
- UK: 5.15%
- Asia (Emerging): 1.02%
- Latin America: 0.19%
Due to this geographical spread, the fund is protected from region-specific risks and gets exposure to resource-rich countries. Choosing this fund for international investment is a good option.
Risk and Volatility
Sectoral international funds like this are highly volatile because they are attached to worldwide risks.
- 3-Year Sharpe Ratio: 0.58
- 3-Year Standard Deviation: 28.25%
Therefore, short-term price fluctuations should be expected. This fund is suitable for investors who have high risk tolerance and a long-term investment horizon. Typically, gold investments are long-term in nature, and so should be the approach for this fund.
Who Should Invest?
This fund is perfect for investors who:
- Want exposure to the global gold mining industry
- Expect a rise in gold prices
- Seek international diversification in their portfolio
- Want a hedge against inflation or rupee depreciation
However, conservative investors or those with short-term financial goals should avoid this fund, as short-term returns can be unpredictable.
Final Thoughts
DSP World Gold Fund of Fund – Growth is a unique option for Indian investors where they get a chance to invest in an international fund and benefit from the performance of global gold mining companies without directly buying foreign stocks.
In 2025, the fund has shown very strong recent performance, but it’s important to consider its high volatility and sector-specific risk.
If you believe in the bullish trend of gold and are a long-term investor, then this fund can become a valuable part of your diversified portfolio.
📌 Disclaimer:
This article is only for informational purposes and has been written by a mutual fund distributor who is AMFI registered. Please consult your financial advisor before making any investment decisions. Mutual fund investments are subject to market risks. Read all scheme-related documents carefully.
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