SAMCO Flexi Cap fund is a mutual fund that aims to generate long-term capital growth from an actively managed portfolio of Indian and foreign equity instruments across market capitalization. It invests in 25 stress-tested efficient businesses from India and global equity markets using its proprietary HexaShield Framework. This fund is actively managed by Samco Mutual Fund which pioneers the concept of HexaShield testing and active investing in India. As of September 2023, the fund has assets under management worth ₹767 Cr.
Understanding SAMCO Flexi Cap Fund
SAMCO Flexi Cap funds are the type of flexi cap funds that have the flexibility to invest in companies across different market capitalizations including large-cap, mid-cap, and small-cap stocks. This flexibility allows fund managers to adjust to the market conditions and take advantage of investment opportunities across various financial market segments
The objective of this fund is to generate long-term capital appreciation for investors. It provides investors with the benefits of diversification and the potential for higher returns. These mutual funds effectively spread the investment risk across various sectors and stocks through investments in a diversified portfolio of equity and equity-related instruments. This diversification can potentially reduce the impact of any individual stock or sector underperforming.
Key Features of SAMCO Flexi Cap Fund
Here are some of the key features of this fund:
HexaShield Framework
The HexaShield Framework is a unique testing methodology that evaluates companies based on six parameters, including financial strength, management quality, and business efficiency. SAMCO fund uses HexaShield Framework to invest in businesses in India.
Simple Scheme Information Document
Samco's Scheme Information document is the simplest. The fund only has 3 permissible assets - Indian Equities, Global Equities, and TREPS (Cash equivalents). The fund will not invest in debt instruments.
Truly Active Funds
Samco Mutual Fund transparently discloses active shares to Indian investors. The fund is actively managed by Samco Mutual Fund which pioneers the concept of HexaShield testing and truly active investing in India.
Portfolio
Samco Flexi Cap fund portfolio has 26 stocks with 36.42% invested in large-cap stocks, 23.79% invested in mid-cap stocks, and 8.68% invested in small-cap stocks. The top 5 stock weight is 39.21%, and the top 3 sector weight is 44.9%.
Investment Details & Plans of SAMCO Fund
Here are some investment details and plans:
Plans
The scheme offers two plans: Direct Growth and Regular Growth.
Benchmark Index:
The benchmark index for this fund is the Nifty 500 Index TRI.
STP Frequency
The fund provides a Normal Systematic Transfer Plan (STP) with multiple frequency options including Daily, Weekly, Fortnightly, Monthly, and Quarterly.
Minimum Application Amount of Scheme
The minimum initial application amount for this scheme is ₹5,000 with subsequent investments allowed in multiples of ₹1.
Minimum Additional Application Amount
The minimum amount is ₹500 for additional investments and you can invest in multiples of ₹1 thereafter.
Entry Load & Exit Load
There is no entry load applicable for investments in this Flexi Cap Fund. Exit loads are applicable based on the holding period:
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- 2.00% if the investment is redeemed or switched out on or before 365 days from the date of allotment of units.
- 1.00% if the investment is redeemed or switched out after 365 days but on or before 730 days from the date of allotment of units.
- No exit load will be taxed if the investment is redeemed or switched after 730 days from the date of unit allotment.
NAV & NFO
The Samco Flexi Cap Fund NAV is ₹11.9700. Its NFO opened on January 17, 2022, and closed on January 31, 2022. The fund aims to offer a transparent investment approach by disclosing Active Share daily and strives to provide high returns through its unique investment strategy.
Why Consider SAMCO Flexi Cap Funds for Your Portfolio?
SAMCO Fund is considered for your portfolio due to the following reasons:
Diversification
It invests in a mix of large-cap, mid-cap, and small-cap stocks from India and global markets. This diversification spreads the investment risk and can potentially improve portfolio stability.
Professional Management
These funds are actively managed by experienced fund managers who make effective investment decisions. Their expertise can be valuable for investors seeking professional guidance.
Risk Management
This fund selects businesses that have been evaluated and are considered efficient. This approach minimizes risk and protects investments from economic challenges.
Potential for Higher Returns
Investing in SAMCO fund has the potential for higher long-term returns.
Long-Term Wealth Creation
The primary objective of these funds is long-term capital appreciation. Making these funds suitable for investors with a longer investment horizon.
Things to Consider Before Investing in SAMCO Flexi Caps Funds?
SAMCO Flexi funds require careful consideration before investing to make sure that they align with your financial goals, risk tolerance, and overall investment strategy. Here are some key factors to consider before investing in this fund:
Investment Goals
Clearly define your investment objectives such as wealth accumulation, retirement planning, or a specific financial goal. This fund should align with your goals and time horizon.
Risk Tolerance
Assess your risk tolerance level accordingly with market fluctuations. SAMCO Flexi-cap funds can have different levels of risk. So, it's important to choose a fund that matches your risk profile.
Fund's Investment Philosophy
Understand the investment philosophy and strategy of this flexi fund. Make sure that the strategy is in line with your investment beliefs and goals.
Fund Manager's Track Record
Research the experience and track record of the fund manager responsible for the SAMCO Flexi Fund. A skilled and experienced fund manager can significantly impact fund performance.
Historical Performance
Review the historical performance of the fund considering short-term and long-term returns. However, remember that past performances do not guarantee future results.
Expense Ratios
Understand the fund's expense ratio which represents the annual costs associated with managing the fund. Lower expense ratios lead to higher returns for investors over time.
SAMCO Flexi Cap Funds vs Other Flexi Cap Funds
SAMCO Flexi Cap Fund can be compared with other Flexi Cap Funds based on various parameters such as investment objective, asset allocation, investment strategy, performance, fees, and expenses. Here is a comparison:
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SAMCO Flexi Cap Fund vs HDFC Flexi Cap Fund:
SAMCO Fund has a higher investment in mid-cap stocks compared to HDFC Flexi Cap Fund. However, It has outperformed HDFC Flexi Cap Fund in terms of returns in the last year.
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SAMCO Flexi Cap Fund vs Invesco India Flexi Cap Fund:
This flexi cap fund has a higher investment in mid-cap stocks compared to Invesco India Flexi Cap Fund. It also has a lower expense ratio compared to the Invesco India Flexi Cap Fund. However, Invesco India Flexi Cap Fund has outperformed in terms of returns in the last year.
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SAMCO Flexi Cap Fund vs HSBC Flexi Cap Fund:
SAMCO Flexi Cap Fund has a higher investment in mid-cap stocks and a lower expense ratio compared to the HSBC Flexi Cap Fund. However, HSBC Flexi Cap Fund has performed better in terms of returns in the last year.
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SAMCO Flexi Cap Fund vs DSP Flexi Cap Fund:
SAMCO Flexi Cap Fund has a higher investment in mid-cap stocks and a lower expense ratio compared to the DSP Flexi Cap Fund. However, the DSP Flexi Cap Fund has also performed better in terms of returns in the last year.
Final Words
SAMCO Flexi Cap fund gives long-term capital growth by investing across different market capitalizations. These funds provide flexibility and diversification to investors. They have also outperformed some other Flexi Cap Funds. Investors need to consider factors like risk tolerance, expense ratios, and historical performance before investing.