| Fund Company | Dynamic Funds |
| Fund Type | Precious Metals Equity |
| Rating | C |
| Style | Growth |
| Risk Level | Very High |
| Load Status | Optional |
| RRSP/RRIF Suitability | Poor |
| TFSA Suitability | Poor |
| Manager | Robert Cohen since November 2000 |
| MER | 2.67% |
| Code | DYN 046 – Front End Units DYN 746 – DSC Units |
| Minimum Investment | $500 |
Analysis: Gold and precious metals funds had a big run-up from October 2008 to later 2010, but have sold off sharply since mid 2011. This fund is no exception, dropping more than 55% in the past year.
It invests in companies involved in the exploration and production of precious metals like gold, silver and platinum. This fund is more volatile than its peers, largely because it has a greater exposure to junior and intermediate gold & precious metals companies.
The environment for gold is not particularly favourable with lower bullion prices, increased production costs, and unfavourable results from previous mergers & acquisition activity. Further, with U.S. economic growth looking as though it may moderate, and Fed tapering inevitable, the outlook for inflation remains quite muted.
In this environment, I would be hard pressed to find a good reason to overweight gold exposure in a portfolio, and I’m even having a tough time justifying having much exposure at all.
Given the volatility profile of this fund, if I were to add precious metals exposure to a portfolio, this would likely not be my choice. I would likely go with RBC Global Precious Metals or Sentry Precious Metals Growth Fund. Both of those offer what I believe to be a more favourable risk reward profile than this offering.