NFO Analysis: Samco Flexi-cap Fund

Samco mutual fund is making debut with a flexi-cap scheme.

Samco Mutual Fund is the newest fund house launching its first scheme namely Samco Flexi-cap Fund. It is an open-ended scheme that will be investing in 25 stress-tested efficient companies from India and across the globe, maintaining efficient portfolio turnover and cost to generate a superior risk-adjusted return for investors over the long term. 

Subscription Dates: The NFO was launched on January 17, 2022, and will close on January 31, 2022.

Objective of the scheme: The scheme aims to generate long-term capital growth from an actively managed portfolio of Indian and foreign equity instruments across market capitalization.
Investment Strategy: The scheme will be investing in a dynamic mix of equity and equity-related instruments across market capitalization i.e., large cap, mid cap and small cap. They would invest in companies based on various criteria including sound professional management, track record, industry scenario, growth prospects, liquidity of the securities, etc. The emphasis of the scheme will be on good quality companies with above-average growth prospects. The scheme follows a 3E investment strategy viz. buying efficient companies, at efficient prices and maintaining efficient cost.

Asset Allocation:

Benchmark: Nifty 500 Index TRI

Fund Manager: Nirali Bhansali (Equity), Dhawal Dhanani (Overseas investments)

This fund will be suitable for investors with high-risk appetites as the fund manager of this scheme will allocate the capital towards equity and equity-related instruments domestically and globally. Investors who are willing to diversify their portfolios and want the exposure of all three market capitalizations, which offers an investor to invest in efficient companies can consider investing in this scheme.

NFO is not the best option to invest in as there is no historical data available to track the performance and this fund is launching its first fund so there is no track record related to any scheme to consider the performance. As this is not a new theme that the fund is offering, it’s better to invest in schemes that already have historical data. Otherwise, investors who are willing to invest in this NFO should have a high-risk appetite or should wait for at least a year to look at fund performance.