Publish Date:
Samco Mutual Fund (MF) has launched an open ended equity scheme - Samco Flexi Cap Fund.
It is an open-ended dynamic equity scheme investing across large cap, mid cap & small cap stocks.
Accordingly, the investment objective of the scheme is to seek to generate long-term capital growth from an actively managed portfolio of Indian & foreign equity instruments across market capitalisation.
However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved.
Under normal circumstances, 65% to 100% of the funds portfolio will be invested in Indian Equity across market capitalization i.e. largecap, midcap and smallcap companies. It can invest 0% to 35% of its assets in Foreign securities.
The scheme may also invest upto 35% of its assets in Tri-party Repo (TREPS) through CCIL.
As per the Scheme Information Document (SID), Samco Flexi Cap Fund aims to generate long term capital appreciation by investing in a dynamic mix of equity and equity related instruments across market capitalizations.
The Scheme would invest in companies based on various criteria including sound professional management, track record, industry scenario, growth prospects, liquidity of the securities, etc. The Scheme will emphasise on well managed, good quality companies with above average growth prospects. There will be no particular bias towards any market cap size or any sector. The Scheme may also invest a certain portion of its corpus in foreign securities.
The portfolio will be built utilising a bottom-up stock selection process, focusing on appreciation potential of individual stocks from a fundamental perspective. The AMC employs a “Fair value” based research process to analyse the appreciation potential of each stock in its universe (Fair value is a measure of the intrinsic worth of a company).
The universe of stocks is carefully selected to include efficient companies having an efficient business model purchased at efficient prices and held with efficient cost and are able to compound consistently.
The scheme by utilising a holistic risk management strategy will endeavour to manage risks associated with investing in equity markets. The scheme has identified the following risks and designed risk management strategies, which are embedded in the investment process to manage these risks
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Quality Risk - Risk of investing in unsustainable / weak companies.
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Price Risk - Risk of overpaying for a company
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Liquidity Risk - High Impact cost of entry and exit
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Concentration risk - Invest across the market capitalization spectrum and industries/ sectors
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Volatility Risk - Volatility in price due to company or portfolio specific factors
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Event Risk - Price risk due to a company / sector specific or market event
The scheme may also seek participation in foreign instruments to achieve optimal portfolio construction.
Samco Flexi Cap Fund’s performance will be benchmarked against Nifty 500 Index TRI (Total Return Index).
Samco Flexi Cap Fund will be managed by Ms Ms. Nirali Bhansali, and Mr Dhawal Ghanshyam Dhanani (Dedicated Fund Manager for overseas investments)
The NFO opens for subscription on January 17, 2022 and closes on January 31, 2022. The scheme will reopen for continuous sale and repurchase within 5 business days from the date of allotment.
The fund’s NAV is priced at Rs 10 per unit during the NFO period. The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.
The fund offers Regular Plan and Direct Plan having only Growth Option.