Samco Mutual Fund is launching a new thematic fund, Samco Active Momentum Fund, that invests in stocks exhibiting momentum characteristics.
The New Fund Offer (NFO) period for the Samco Active Momentum Fund is from 15th June 2023 to 29th June 2023. The scheme re-opens for continuous repurchase and sale within 5 business days from the date of allotment.
Investment Objective: Samco Active Momentum Fund is an open-ended thematic fund. The scheme aims 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 will be achieved.
Samco Active Momentum Fund NFO Detials
|Fund Name||Samco Active Momentum Fund|
|NFO Opening Date||15th June 2023|
|NFO Closing Date||29th June 2023|
|Re-open Date||Within 5 business days from the date of allotment|
|Type of Fund||Thematic Fund|
|Fund Manager||Mr Paras MataliaMr Dhawal Ghanshyam Dhanani (overseas investments)|
|Minimum Investment Amount||INR 5,000|
|Minimum Additional Purchase Amount||INR 500|
|Suitability||Very High Risk|
|Benchmark||Nifty 500 TRI|
|Plans and Options||Direct and Regular PlanGrowth Option|
- All additional investment amounts should be multiple of INR 1/-
- The minimum SIP/SWP/STP for monthly frequency is INR 500/-
Who Can Invest in Samco Active Momentum Fund NFO?
Samco Active Momentum Fund is a thematic fund that invests in stocks with momentum characteristics across different market capitalisations (Large Caps, Mid-Caps, Small Caps, and Micro Caps). It aims to capitalise on short to medium-term momentum in stock prices.
Trades are executed based on signals generated by the algorithm, which analyses various data points such as price, volume, volatility, open interest, breakouts, relative strengths, and correlations. Momentum investing takes advantage of the time gap before mean reversion occurs and is typically observed in short to intermediate term.
The scheme seeks out stocks that demonstrate momentum in price and/or earnings growth. It generally buys stocks showing strong price breakouts and sells stocks displaying price weakness. Stock selection in Momentum can be made through Time Series Momentum (Absolute) or Relative Strength Momentum (Cross-Sectional).
Time Series Momentum assesses a stock’s past performance by considering its own returns independently from the returns of other stocks. On the other hand, cross-sectional momentum measures a stock’s performance in comparison to other stocks. A mix of methodologies to compute momentum are used, which include but are not limited to Risk-adjusted Price Momentum, Momentum Strength Score & Momentum ratio.
Since it’s a theme-based fund, investors must be well aware of the associated risks. Therefore, investors seeking exposure to an equity scheme that focuses on momentum as a theme and have high-risk tolerance levels can consider investing in the scheme. Investing in a theme makes the portfolio highly volatile. Therefore, investors must be well aware of the associated risks. Investing in a thematic fund requires a minimum investment horizon of 5 years or more.
Mr Paras Matalia
Mr Matalia is currently the Fund Manager & Head of Research at Samco Mutual Fund. He has more than 5 years of experience in the Indian Capital Markets. He started his career as an equity research analyst for creating StockBasket portfolios and then went on to Head the StockBasket business unit. He is a qualified Chartered Accountant and Certified Research Analyst (NISM) and holds a bachelor’s degree from R. A. Podar College of Commerce and Economics.
Mr Dhawal Ghanshyam Dhanani
Mr Dhanani is currently the Fund Manager – Overseas Investments at Samco Mutual Fund. He has more than 8 years of industry experience. Prior to joining Samco, he was an independent equity researcher. He is a qualified Chartered Accountant and holds a Bachelor of Commerce (B.Com.) degree from Narsee Monjee College of Commerce and Economics.
|Types of Instruments||Minimum Allocation||Maximum Allocation||Risk Profile|
|Equity & Equity-related instruments of momentum theme||80%||100%||High to Very High|
|Equity and Equity related securities of other Companies||0%||20%||High to Very High|
|Debt & Money market instruments||0%||20%||Low to Moderate|
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Frequently Asked Questions
You can invest in the Samco Active Momentum Fund through any of the following methods:
Offline: By filling out the Samco NFO application and submitting it along with all documents and cheques to the nearest Investor Service Centre of CAMS or Samco mutual fund office.
Samco Mutual Fund Website
Online FinTech platforms and mutual fund platforms
Through Demat account
Through a mutual fund distributor or agent
Yes, it is a very high-risk investment based on the riskometer. Samco Active Momentum Fund is a theme-based fund that invests in stocks with momentum characteristics across different market capitalisations. Investing in a theme makes the portfolio highly volatile.
No, the Samco Active Momentum Fund has no lock-in period.
The Samco Active Momentum Fund scheme re-opens for ongoing subscriptions, switches and redemptions within 5 business days from the date of allotment.