Topic: How To Invest

Pat. I’m thinking of investing in the Dynamic Precious Metals mutual fund. What do you think about this fund?

Article Excerpt

Dynamic Precious Metals Fund is a mutual fund that mainly invests in mining stocks and other resource companies. The $1.05-billion fund focuses on small- to mid-cap stocks. Its MER is 2.75%. The fund holds 95.3% of its portfolio in gold and precious-metals stocks, and 4.5% in metals and minerals stocks. Its top-ten holdings are Osisko Mining, Kinross Gold, Andean Resources, San Gold, Perseus Mining, Allied Nevada Gold, Aurizon Mines, Alamos Gold, Agnico-Eagle Mines and Sabina Gold & Silver. Dynamic Precious Metals Fund holds 72.3% of its portfolio in Canadian stocks, 21.3% in Australia and 6.0% in the U.S. Dynamic Precious Metals Fund is okay for aggressive investors to hold. However, for new buying we recommend the lower-fee iShares S&P/TSX Global Gold Index Fund, $27.03, symbol XGD on Toronto (Shares outstanding: 50.3 million; Market cap: $1.4 billion; ca.ishares.com). This fund aims to mirror the performance of the S&P/TSX Global Gold Index, which is made up of gold stocks from Canada and…