SAMCO Asset Management Company (AMC) is all set to offer a new investment opportunity for mutual fund investors with the launch of its Multi Cap Fund. This New Fund Offer (NFO) will open for subscription from 10 October 2024 and will remain available till 24 October 2024. The fund is designed to give investors exposure to stocks across different market capitalizations, including large cap, mid cap, small cap, and even micro cap companies. The multi cap nature of this fund provides a balanced portfolio for investors seeking long-term growth.
What Makes SAMCO Multi Cap Fund Unique?
The SAMCO Multi Cap Fund is built on a unique 4-in-1 strategy, making it stand out in the multi cap segment. The main goal is to spread the investment across four different categories of stocks, which not only balances risk but also improves potential returns. Here’s how the investment is divided:
- 25% in Large Cap Stocks: These are well-established companies with a strong market presence and stable financials. This category provides a solid foundation for the portfolio.
- 25% in Mid Cap Stocks: Mid cap companies are growing businesses that offer higher growth potential but come with slightly more risk compared to large caps.
- 25% in Small Cap Stocks: This segment consists of smaller companies with high growth potential, though they can be more volatile. Including small caps can boost returns over the long term.
- 25% in Micro Cap Stocks: These are companies outside the Nifty 500 index, often referred to as micro caps. While they are riskier, they offer access to new opportunities and emerging sectors that can significantly add to the portfolio’s growth.
This equal allocation across large, mid, small, and micro caps makes SAMCO Multi Cap Fund an appealing choice for investors looking for diversification within their equity portfolio.
Key Information About SAMCO Multi Cap Fund NFO
- NFO Start Date: 10 October 2024
- NFO End Date: 24 October 2024
- Fund Category: Multi Cap Fund
- Benchmark Index: Nifty 500 Multicap 50:25:25 Total Returns Index
- Risk Level: Very High
- Fund Managers: Paras Matalia and Dhawal Dhanani
- Minimum Investment: Rs 5000 (and thereafter in multiples of Rs 1)
- Minimum SIP Amount: Rs 500 (and in multiples of Rs 1 thereafter)
Exit Load Details
The SAMCO Multi Cap Fund provides flexibility when it comes to withdrawing your money. Here’s a summary of the exit load structure:
- Investors can redeem up to 10% of their units without any exit load within 12 months from the date of allotment.
- If more than 10% of the units are redeemed within 12 months, a 1% exit load will apply.
- No exit load is applicable for redemptions or switching after 12 months of allotment.
Why Should You Consider Investing in SAMCO Multi Cap Fund?
This multi cap fund offers a unique blend of stocks that range from large cap to micro cap, making it a suitable option for those who want to diversify their investments and maximize their returns over the long term. Here’s why this fund is worth considering:
- Diversification Across Market Caps: Unlike other multi cap funds that typically invest in large, mid, and small caps, SAMCO’s Multi Cap Fund goes a step further by including micro cap stocks. This provides access to companies that have the potential to deliver outsized growth, especially in emerging industries.
- SAMCO’s Proprietary Stock Selection Model: SAMCO has its own stock-picking model that focuses on identifying promising stocks while managing risk effectively. This model helps the fund managers choose stocks that have a strong potential for growth.
- Hedging for Risk Management: The fund uses a hedging strategy to protect against market downturns. This can help in minimizing the downside risk for investors, especially in volatile market conditions.
- Dynamic Rebalancing: One of the key features of SAMCO Multi Cap Fund is its ability to dynamically rebalance the portfolio based on changing market conditions. This ensures that the fund adapts to market trends, aiming to deliver better returns while keeping the risk balanced.
Ideal for Long-Term Investors with High Risk Appetite
Multi cap funds have seen significant growth in popularity among investors in India, especially those looking for long-term wealth creation. Over the past three years, the multi cap segment has grown by more than 84%. This fund category is ideal for investors who are comfortable with high risk in exchange for potentially higher returns.
Given the high-risk nature of equity investments, it is always advisable to invest for the long term, preferably through a Systematic Investment Plan (SIP). SIPs allow you to invest smaller amounts regularly, reducing the impact of market volatility and helping in rupee cost averaging.
Fund Manager Expertise
The SAMCO Multi Cap Fund is managed by two experienced fund managers—Paras Matalia and Dhawal Dhanani—who bring their extensive knowledge and expertise to the table. Their focus will be on data-driven stock selection, identifying opportunities across various market segments, and reducing equity exposure during market downturns to protect investor wealth.
