Samco Mutual Fund Launches its First NFO
“Samco Flexi Cap Fund”
(An
open-ended equity scheme that aims to provide capital appreciation by
investing in equity and equity-related securities across market
capitalization.)
· SAMCO Flexi Cap Fund aims to create wealth for investors a 3E step strategy-
ü Investing in efficient companies at an efficient price and maintaining efficient costs.
ü The
scheme will follow a growth investing strategy investing in Indian and
Global Equities in a proportion of 65% (Indian Equities) - 35% (Global
Equities).
· Samco Mutual Fund to set new transparency and disclosure benchmarks with Industry-first disclosures:
ü Scheme’s Active share – which shows to what degree is the fund different from index
ü Voluntary
Dealing cost – shows how the scheme will be extremely cost efficient
and avoid unnecessary portfolio churn to keep cost low for investors
· SAMCO publishes a Unit Holder’s Handbook to detail the strategy and help investors understand the process
Samco Mutual Fund today announced the launch of its first NFO “Samco Flexi Cap Fund”. The NFO opens on 17th of Jan 2022 and closes on 31st Jan 2022
Jimeet Modi, Founder and Director of Samco Asset Management Pvt Ltd
said “We are excited to launch SAMCO Flexi Cap Fund as SAMCO's first
fund offering. In line with our goal, the fund is designed as a truly
active fund and will aim and endeavour to maintain a high active share.
This shall ensure that investors get their money's worth and a truly
differentiated fund when they pay an active asset management fee. This
is a refreshing change in a world where closet indexing has become
mainstream.”
Samco Flexi Cap Fund follows the 3E strategy to build a portfolio designed to generate a high risk adjusted return.
1. Invest in Efficient Companies:
The scheme shall invest only efficient companies that have an ability
to sustainably generate a high return on capital in cash adjusted for
discretionary growth expenditures. SAMCO targets to invest in businesses
with 25%+ adjusted return on capital. The scheme shall invest in 25
stocks across market caps from India and the Globe in a proportion of
65% - 35% of the net assets of the scheme. These stocks shall be from
universe of 125 companies that have passed SAMCO’s HexaShield framework.
2. At an Efficient Price:
The scheme will only invest in securities at reasonable/ efficient
prices when the relative yield for stocks is reasonable vis-a-vis the
rest of the comparative universe.
3. Maintain an Efficient portfolio turnover and cost:
The third pillar of the strategy is aimed at reducing hidden dealing
costs and improve performance. Investors believe that Total expense
ratio is the only cost that is incurred by them as a part of their
investments. But there is also a hidden cost which is not disclosed in
any of these figures: the cost of dealing within the fund. When a fund
manager or an investor deals in stocks, he or she pays brokerage
commissions, securities transaction tax at 0.1 per cent, exchange
transaction charges, stamp duty, SEBI fees and the difference between
the broker’s bid and offer prices (the spread) often referred to as the
impact cost.
Total cost of investments incurred by investors = TER of Scheme + Voluntary dealing cost
SAMCO
Mutual fund is the first mutual fund in India that will transparently
disclose all voluntary dealing costs. Voluntary dealing costs are all
costs incurred by the fund manager for purchases and sales excluding the
costs incurred for involuntary transactions such as fund
inflows/outflows. This shall be computed as a percentage of the AUM.
This will help investors compute the total cost of investments which is a
sum of the TER and voluntary dealing costs.
Commenting on the launch Mr Umesh Kumar Mehta, CEO of Samco Asset Management Pvt Ltd said
“SAMCO FlexiCap Fund is a unique and a pure equity fund in the Flexi
Cap Category by its design. Unlike other funds, it only seeks to invest
in Indian Equities and Global Equities. No other assets like corporate
debt, REITs, derivatives, etc are permitted which will allow the scheme
to be a pure equity scheme. It’s 25 stock portfolio construction
strategy ensures that investors enjoy benefits of reasonable
concentration and diversification unlike other strategies which may be
overly diversified. Further, investors get exposure to high growth
global names and yet since 65% of portfolio will be Indian equities, the
applicable taxation would be that of long-term capital gains for
equities i.e., 10% after 1 year. This works as a great optimal structure
for investors. Further, we are proud to be the first AMC to publish a
Unit Holder’s handbook which explains in detail how investors’ money
shall be managed. This ensures transparency of process and helps
investors have clear expectations from the fund.”
Mrs. Nirali Bhansali, Equity Fund Manager of the SAMCO Flexi Cap Fund said “We
have constructed the SAMCO FlexiCap fund as a simple 3-step buy and
hold strategy that shall invest in some of the worlds fast growing and
capital efficient companies that can compound capital over the long
term. Investors will get exposure to high growth companies globally
since the fund shall invest 35% of its assets in global stocks. Further,
since the strategy is designed to reduce the portfolio turnover, we
shall endeavor to have low voluntary dealing costs so that Investors
total cost of investment is reasonable. We are excited to set new
standards with our disclosures on active share as well voluntary dealing
costs.”
The
Fund Manager of the scheme shall be Mrs. Nirali Bhansali and the
dedicated fund manager for overseas investments shall be Mr. Dhawal
Dhanani.
