Mumbai, January 2022.

Samco Mutual Fund today announced the launch of its first NFO “Samco Flexi Cap Fund”. The NFO opens on 17^th of Jan 2022 and closes on 31^st 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.