Samco Mutual Fund Introduces Samco Active Momentum Fund
Jun 16, 2023
Samco Mutual Fund has launched – Samco Active Momentum Fund
It is an open-ended equity scheme following momentum theme.
Accordingly, the investment objective of the Scheme is to seek to generate long-term capital appreciation by investing in stocks showing strong momentum. Momentum stocks are such that exhibit positive price momentum – based on the phenomenon that stocks which have performed well in the past relative to other stocks (winners) continue to perform well in the future, and stocks that have performed relatively poorly (losers) continue to perform poorly. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.
Under normal circumstances, Samco Active Momentum Fund will hold an allocation of 80% to 100% of its assets in Equity & Equity related instruments of momentum theme, 0% to 20% in Equity and Equity related securities of other Companies and 0% to 20% in Debt and Money Market instruments.
As per the Scheme Information Document, Samco Active Momentum Fund seeks to generate long-term capital appreciation by investing in stocks showing strong momentum. Momentum stocks are such that exhibit positive price momentum – based on the phenomenon that stocks which have performed well in the past relative to other stocks (winners) continue to perform well in the future, and stocks that have performed relatively poorly (losers) continue to perform poorly.
The momentum strategy is based on buy high, sell higher or alternatively, cut your losses and let your winners run. The scheme shall invest in stocks that exhibit momentum characteristics across market capitalisations i.e. Large Caps, Mid-Caps, Small Caps and Micro Cap companies. The fund intends to benefit from momentum in stock prices from short to medium term time frame. The fund will adapt to changing market conditions and increases the weight to current outperforming sectors.
Samco Active Momentum Fund’s performance will be benchmarked against Nifty 500 TRI.
The scheme will be managed by Mr Paras Matalia and Mr. Dhawal Ghanshyam Dhanani for overseas investments.
The NFO opens for subscription on June 15, 2023 and closes on June 29, 2023. The schemes 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 500/- and in multiples of Re 1/- thereafter.
The scheme offers Regular Plan and Direct Plan each plan offers Growth option only.