Why DSP Merrill Lynch World Gold Fund under performing for past 2 months ?

I have invested INR 1,00,000 in DSP ML world Gold Fund, at NAV of Rs.14 on end Oct'07, after investing this fund the NAV has been moving to underneath. But it was performed well in earlier days. It was gave 40% returns with in 3 months period. What should I do for in this case, shall I hold and switch to another fund. Please suggest us.

I think, you should give it more time. You can't judge a fund on two months performance. It is a good fund. & you will have to pay 0.50% exit load, if you redeem before six months.

If you wish to invest 1 Lakh pl invest in 10 funds. Do not go for one single Fund.. Out of 10m Horse , 5 will be of race and other 45 will be of garden

1) SBI MAGNUM MSFU CONTRA
2) RELIANCE GROWTH
3) JM BASIC FUND
4) DSPML TIGER FUND
5) HDFC TOP 200 FUND
6) FRANKLIN INDIA PRIMA PLUS
7) STANDARD CHARTERED PREMIERE EQUITY
8) ICICI INFRASTRUCTURE FUND
9) JP MORGAN INDIA EQUITY
10) KOTAK OPPORTUNITIES

This is initial recommendation, subject to required modifications as per the changing financial scenerio. Besides this does not include overseas fund which can be included in consultation with your financial conultant
. Some of them can be named as below:

1) TEMPELTON INDIA EQUITY INCOME FUND
2) BIRLA SUNLIFE INTL EQUITY FUND
3) PRINCIPAL GLOBAL OPPORTUNITIES FUND