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Samco Securities plans to capture 15% share of active mutual fund distributors

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Ahead of its maiden scheme launch in January 2022, Samco Mutual Fund sets its focus on the southern market with a target to cover 15-20 per cent of active mutual fund distributors (MFDs) in this region.

“In the next 2-3 months, before our NFO (New Fund Offer), we are looking to get 15-20 per cent of active mutual fund distributors. We have identified distributors, conducting aggressive meetings and roadshows because they are the ones who can explain our product differentiation to the investors,” said Umeshkumar Mehta, CEO of Samco Asset Management Private Limited.

In August, Mumbai-based discount broker Samco Securities received SEBI approval to start a mutual fund business. The asset management company (AMC) said it will purely focus on actively-managed funds and will be the first AMC to transparently disclose daily ‘active share’ to the investors.

“Our research shows that around 75 per cent of portfolios of all schemes in the mutual fund industry are in the exact proportion of the benchmarks like Nifty 50 or Nifty 500, etc. This structure makes underperformance against the index inevitable,” Mehta said.

“We will build funds with high active share so that cost-conscious investors get a truly active fund and not a closet index fund when they pay for an active TER and our stress tested investing framework gives the new age investor an authentic and not merely a generic reason to invest with us,” he added.

Stress test framework

Samco AMC will launch Flexi Cap fund in January followed by an international fund and equity-linked savings scheme (ELSS).

He also said that the company has introduced a stress test framework to invest only in those companies that have the ability to survive and endure shocks and recession in the economy and are able to generate higher risk adjusted returns.



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