How do Midas Fund and Midas Perpetual Portfolio pursue gold investing?

Midas Fund
Through gold investing, Midas 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.

Midas Perpetual Portfolio
Midas Perpetual Portfolio seeks to preserve and increase the purchasing power value of its shares over the long term. In pursuit of its investment objective, the Fund invests a fixed target percentage of its assets in gold.

How do Midas Fund and Midas Perpetual Portfolio select gold investments which meet their objectives?

Midas Fund
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.

Midas Perpetual Portfolio
To meet its fixed target percentage in gold, Midas Perpetual Portfolio's invesments in gold may consist of gold bullion, bullion type coins such as American Eagle gold coins and Canadian Maple Leaf gold coins, exchange traded grantor trusts that invest in gold ("ETFs"), and, if deemed attractive for tax planning or other purposes, shares of companies involved in gold mining.

When would Midas Fund and Midas Perpetual Portfolio sell a portfolio holding?

Midas Fund
In seeking capital appreciation or income from gold investing, Midas 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 investment objective, or when the Fund must meet redemptions.

Midas Perpetual Portfolio
Subsequent to each calendar quarter end, Midas Perpetual Portfolio's investment manager normally compares the Fund’s actual percentage of investments in a given category with the Target Percentage for that category. Should the actual percentage at calendar quarter end vary from the Target Percentage (due to market fluctuations or other factors) by more than one-tenth of the Target Percentage for that category, within the subsequent quarter, the investment manager may adjust the Fund’s investments as needed to more closely align the actual percentage to the Target Percentage (unless it is substantially re-aligned at any time during the subsequent quarter by further market fluctuations or other factors). 

Besides gold investing, what other investing could Midas Fund and Midas Perpetual Portfolio benefit from? Do the Funds make other types of investments unrelated to gold investing?

Midas Fund
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.

When seeking to achieve its secondary objective of current income, Midas 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 investment objective. 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.

Midas Perpetual Portfolio
Along with investing in gold, Midas Perpetual Portfolio invests a fixed target percentage of its total assets in each of the following categories: silver, Swiss France assets, hard asset securities, and large capitalization growth stocks. The investment strategy of the Fund acknowledges a broad range of economic possibilities and seeks to incorporate investments appropriate for each of them. Investors who wish to invest all or a portion of their capital in a way that does not depend on any particular outcome for the economy should consider purchasing shares of the Fund.

To learn more about gold investing, Midas Fund, and Midas Perpetual Portfolio 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!

 
   
 

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