Samco Mutual Fund launches the Samco Flexi Cap Fund

Samco Mutual Fund has announced the launch of the Samco Flexi Cap Fund. This is the fund house’s first mutual fund offering. The program’s NFO will open on January 17 and close for subscription on January 31.

The fund will be managed by Nirali Bhansali and the fund manager dedicated to overseas investments will be Dhawal Dhanani.

According to the press release, Samco Flexi Cap Fund will follow the 3E strategy to build a portfolio. That is to say, invest in efficient companies; At an efficient price and maintain efficient portfolio turnover and cost.

Commenting on the launch, Umesh Kumar Mehta, CEO of Samco Asset Management, said, “SAMCO FlexiCap Fund is a unique and pure equity fund in the Flexi Cap category by design. Unlike other funds, it only seeks to invest in Indian stocks and global stocks. No other assets like corporate debt, REITs, derivatives, etc. permitted, which will allow the plan to be a pure equity plan. Its 25-stock portfolio construction strategy ensures that investors enjoy the benefits of reasonable concentration and diversification unlike other strategies which can be too diversified. Additionally, investors get exposure to global high growth names and since 65% of the portfolio will be Indian equities, the applicable taxation would be on long term capital gains for equities i.e. say 10% after 1 year. It works as an excellent optimal structure for investors.”

Nirali Bhansali, equity fund manager of the SAMCO Flexi Cap fund, said
, “We have built the SAMCO FlexiCap Fund as a simple 3-step buy and hold strategy that will invest in some of the fastest growing, capital efficient global companies that can accumulate capital over the long term. Investors will get a exposure to high growth companies globally as the fund will invest 35% of its assets in global equities Additionally, as the strategy is designed to reduce portfolio turnover, we will strive to have low voluntary trading costs so that investors’ total investment cost is reasonable. We are excited to set new standards with our disclosures on active share as well as voluntary trading costs.”

Dolores W. Simon