ING OptiMix Global Commodities Fund

Commodities seems to be the hot flavour of the present time when it comes to investments and trading. Over the past few months, Commodities have been the best performing asset class, as listed in the Best Performing Mutual Funds .

So, it seems that all the mutual fund houses are set to encase upon this commodities sector. The latest offerings in the Commodity mutual funds being : Mirae Asset Global Commodity Fund and then we see a lot of ads about the SBI Magnum COMMA Fund.

Now ING Mutual Fund or ING Investment Management has joined the bandwagon with their fund called ING OptiMix Global Commodities Fund .

What is the ING OptiMix Global Commodities Fund?
ING OptiMix Global Commodities Fund is yet another mutual fund trying to bet the investors money on Commodities. It's an open ended scheme and since it invests in commodities, it is classified as HYBRID fund.

Is this ING OptiMix Global Commodities Fund worth investing?
Experts say yes. The past performance of best performing mutual funds is that in the commodities sector because of the rising commodities prices across the globe. Commodities in itself is a separate asset class and hence this ING OptiMix Global Commodities Fund attempts to encash upon the commodities price boom.

What are the NFO dates for ING OptiMix Global Commodities Fund NFO?
The ING OptiMix Global Commodities Fund will open on date July 29th, 2008 and close on date 25th August 2008.

Any special details about ING OptiMix Global Commodities Fund?
ING OptiMix Global Commodities Fund is a Fund of Funds. It will NOT invest directly in any commodity specific companies, but will buy units in other global funds which are investing in commodities. Hence, the forex risk comes into play.

How will the assets be allocated in ING OptiMix Global Commodities Fund?
The pattern of investment in ING OptiMix Global Commodities Fund will be as follows: 65%-100% in Global mutual funds which invest in commodity related securities., 0%-25% in Debt funds, liquid funds, money market funds and 0%-10% in Money Market Securities.

What is the load structure of ING OptiMix Global Commodities Fund?
Entry load of ING OptiMix Global Commodities Fund: 2.50% for applications below Rs. 5 crores and Nil for applications of Rs. 5 crs and above

Exit Load for ING OptiMix Global Commodities Fund: NIL.
For SIP during ongoing sales and switches from Multi Manager Schemes during NFO, entry load of 2.50% will be applicable. There is no exit load for SIP.

What are the risk factors of ING OptiMix Global Commodities Fund?
Since the fund will be investing the money in global commodity funds, there is a forex risk involved.
Then there is sector specific risk, what if the commodity prices start falling. The returns on this fund will be hit drastically.
Since this ING OptiMix Global Commodities Fund is global in nature, there will be significant exposure to forex risk.
This fund may have exposure to emerging market, which may turn out to be risky. Also, the returns of the global fund may be affected due to security specific local tax laws, accounting methods, geo-political problems, etc., which will ultimately affect the returns on this fund.

More information about ING OptiMix Global Commodities Fund?
Interested investors can contact Call ING toll free no 1800 220042.