Samco Mutual Fund Files Draft for Its New Samco Large Cap Fund

Samco Mutual Fund has filed a draft with SEBI for the Samco Large Cap Fund, an open-ended equity scheme focusing primarily on large-cap stocks. Here’s a detailed overview of the fund’s objectives, strategies, and features based on the draft scheme document.

Investment Objective

The Samco Large Cap Fund aims to generate long-term capital appreciation through a diversified portfolio primarily consisting of equity and equity-related instruments of large-cap companies. However, the fund does not assure or guarantee the achievement of its investment objectives.

Key Features

1. Category and Structure: The scheme falls under the Large Cap Fund category and operates as an open-ended fund.
2. Benchmark: The Nifty 100 Total Returns Index (TRI) is chosen as the performance benchmark.
3. Liquidity: Investors can purchase, switch, or redeem units at NAV-based prices on any business day.

Asset Allocation & Strategy

The fund plans to allocate 80%-100% of its assets to equity instruments of large-cap companies and up to 20% in debt and money market instruments. The innovative C.A.R.E. Momentum System (Cross-Sectional Momentum, Absolute Momentum, Revenue Momentum, and Earnings Momentum) underpins its investment approach, focusing on companies with market performance and growth indicators.

Operational Details

• Minimum Investment: ₹5,000 for lump-sum investments; SIP options start at ₹500 with a minimum of 12 instalments.
• Entry/Exit Loads: No entry load; 10% of units can be redeemed without an exit load within 12 months, with a 1% charge applied to excess redemptions during this period.
• Expense Ratio: The scheme’s total expense ratio is capped at 2.25% for the first ₹500 crore of daily net assets.

Additional Highlights

• Derivatives Usage: Up to 80% for hedging and 50% for non-hedging purposes.
• NAV Disclosure: Published daily on the AMC and AMFI websites.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.