Samco Mutual Fund's debut Flexi-fund NFO to open from January 17; to mop up Rs 5,000 cr

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Samco Mutual Fund on Thursday announced the launch of its first fund offering, Samco Flexi Cap Fund, through which it is targeting to mop up Rs 5,000 crore.

The new fund offer (NFO) will open on January 17 and closes on January 31, the fund house announced in a virtual press conference.

Samco Flexi Cap Fund is an open-ended equity scheme that aims to provide capital appreciation by investing in equity and equity-related securities across market capitalization.

The scheme will invest in 25 stocks across market caps from India and the globe in a proportion of 65 per cent (Indian equities) and 35 per cent (global equities).

These stocks will be from a universe of 125 companies that have passed Samco’s HexaShield framework.

The fund will use a metric called ‘active share’ that shifts from traditional benchmarking and focuses on heavily stress-tested companies.

These tests will be conducted along with many parameters, including corporate governance, cash flow and balance sheet, leading to only a small number of companies like 40-50 stocks out of the top 500 companies on Indian bourses.

”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,” Samco Asset Management CEO Umeshkumar Mehta said.

”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,” he added.

Jimeet Modi, Founder and Director of Samco Asset Management, said the fund is designed as a truly active fund and will aim and endeavour to maintain a high active share.

This will ensure that investors get their money’s worth and a truly differentiated fund when they pay an active asset management fee. In December, Mehta had said that internally the fund house is targeting Rs 5,000 crore collection in the New Fund Offer.

(With inputs from PTI)

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Published on: Thursday, January 06, 2022, 04:52 PM IST