|
Through gold
investing the Fund seeks primarily capital appreciation
and protection
against inflation and, secondarily, current
income. Midas Fund owns securities of companies
primarily
involved, directly or indirectly, in the business of mining,
processing, fabricating,
distributing or otherwise dealing
in gold, silver, platinum or other natural resources.
How does Midas Fund select which companies
meet
its
gold
investing objective?
Successful gold
investing depends on many factors. Chief factors considered
by
Midas Fund’s investment manager in gold
investing, among other things, are
the ore quality
of metals mined by a company, a company’s mining,
processing
and fabricating costs and techniques, the quantity
of a company’s unmined reserves,
quality of management,
and marketability of a company’s equity or debt securities.
In gold
investing, management emphasizes the potential for
growth of the
proposed investment, although it also may
consider an investment’s income
generating capacity
as well.
When would Midas
Fund sell a portfolio holding?
In seeking capital appreciation
or income from gold
investing, the Fund may
sell an investment when the value
or growth potential of the investment appears
limited or
exceeded by other investment opportunities, when an investment
in
the issuer no longer appears to meet the Fund’s gold
investing objective, or
when the Fund must meet redemptions.
Besides
gold
investing, what other investing could
Midas Fund benefit
from?
Unlike some gold
mutual funds, Midas Fund may also invest in other natural
resources companies, such as those involved in ferrous
and non-ferrous metals
(such as iron, aluminum and copper),
strategic metals (such as uranium and titanium),
hydrocarbons
(such as coal, oil and natural gas), chemicals, forest
products, real estate,
food products and other basic commodities,
if the investment manager deems them
to have attractive
investment characteristics.
Does Midas Fund make
other types of investments
unrelated to
gold
investing?
When seeking to
achieve its secondary objective of current income, the Fund
normally invests
in fixed income securities of issuers with
investment grade ratings. The Fund may invest in certain
derivatives such as options, futures and forward currency
contracts. The Fund also may engage in
leverage by borrowing
money for investment purposes. The Fund also may lend portfolio
securities
to other parties and may engage in short selling.
Additionally, the Fund may invest in special
situations such
as restricted securities, liquidations and reorganizations,
which might or might
not involve gold
investing. The Fund may, from time to time, under an adverse gold
investing market or other conditions, take temporary
defensive positions and invest some or all of its assets
in cash and cash equivalents, money market securities of
U.S. and foreign issuers, short term bonds,
repurchase agreements,
and convertible bonds. When the Fund takes such a temporary
defensive
position, it may not achieve its gold
investing objective.
To learn more about gold
investing and Midas Fund, we invite you to explore
our web site or call 1-800-400-MIDAS (6432) to speak to
a shareholder services representative. Thank you for investing with
Midas!
|
