Publish Date:
Samco Mutual Fund launches – Samco Dynamic Asset Allocation Fund
It is an open-ended dynamic asset allocation fund.
Accordingly, the investment objective of the Scheme is to generate income/long-term capital appreciation by investing in equity, equity derivatives, fixed income instruments and foreign securities. The allocation between equity instruments and fixed income will be managed dynamically so as to provide investors with long term capital appreciation while managing downside risk.
However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.
[Read: What Should Be Your Mutual Fund Asset Allocation Strategy Amid Rising Global Uncertainty]
Under normal circumstances, Samco Dynamic Asset Allocation Fund will hold an allocation of 65% to 100% in Equity and Equity related instruments of small cap companies, 0% to 100% Equity & Equity related instruments including derivatives and 0% to 100% in Debt and Money Market Instruments, including Units of Debt oriented mutual fund schemes.
As per the Scheme Information Document, Samco Dynamic Asset Allocation Fund will dynamically allocate its net assets to equity and equity related securities and debt instruments.
The TRANSFORMER asset allocation model also has built-in trailing stop loss systems to cut risks and equity exposure to minimize drawdown in corrections and bear markets. The principal asset allocation of the fund shall be determined based on momentum in equity markets and extreme mean reversion signals which shall be calculated using SAMCO’s proprietary TRANSFORMER model.
Fundamentally the scheme will operate based on trend following strategies i.e., when markets are in clear uptrends with lower volatility, equity allocations shall be higher and when markets are breaking down, in correction or bear market phases, net equity allocations shall be zero or at extremely low levels.
[Read: Diversification in Mutual Fund Portfolio-The Secret to Long-Term Investing Success ]
Samco Dynamic Asset Allocation Fund’s performance will be benchmarked against NIFTY50 Hybrid Composite Debt 50: 50 Index
The scheme will be managed by Mr Paras Matalia (equity portion), Mr Umeshkumar Mehta (equity portion), Mr Abhiroop Mukherjee (Debt Portion) and Mr. Dhawal Ghanshyam Dhanani for making overseas investments.
The NFO opens for subscription on December 07, 2023 and closes on December 21, 2023. The schemes will reopen for continuous sale and repurchase Within five business days of allotment date.
The minimum subscription amount is Rs 5,000/- and in multiples of Re.1/- thereof.
The scheme offers Regular Plan and Direct Plan each plan offers Growth option and Income Distribution cum capital withdrawal Option (IDCW).