Your fund had dipped to very low levels along with the rest of the markets. However, its recovery has been very fast. I would advice you to stay put. Recover your principle amount from the investment. I think it might have the potential to deliver decent returns hereon.

DSP World Gold Fund invests in gold producing and minning companies. It is not linked directly to spot gold prices. Slack demand for gold might even make the NAV and the value of existing stocks in the portfolio go further downwards. Since the demand for gold is decreasing the minning companies reduce the output to support their prices. There might be even lower margins. Since the prices of spot gold have reduced it makes sense to buy phsical gold or Gold ETF to extract value or price appreciation in longer term. Alternatively, additional staggered buying in the same fund from a longer term perspective could be also considered.

I had invested in DSP Mutual fund world gold fund in the month of March 08, in the early days this fund works finely but afterwards what happened to this fund i don’t know, even when gold prices rises fund NAV was below par now. Can any body suggest me shall i continue in this fund or come out of this fund.