NFO: Samco Mutual Fund Launches Multi-Asset Allocation Fund
The company’s Samco Mutual Fund recently unveiled its newest launch offering the Samco Multi Asset Allocation Fund, being an open-ended scheme-cumulating the diversified portfolio within more than one asset classes. In its scheme, an investor has got the opportunity for the investments in equities, fixed income, along with the exchange-traded commodity derivatives and gold and silver ETFs along with the REIT and InvIT units.
The new fund offer (NFO) for this scheme will be open for subscription from December 4 to December 18, while continuous sales and repurchases will start on January 1, 2025. It is benchmarked against a composite index comprising 65% Nifty 50 TRI, 20% CRISIL Short Term Bond Fund Index, 10% Domestic Price of Gold and 5% Domestic Price of Silver.
The scheme has been designed to cater to the varied investor’s tastes:
- Minimum Investment: A lump sum investment begins at Rs.5,000 with a step of Rs.1. For SIPs, the minimum amount is Rs.500 with at least 12 installments.
- Plans and Options: It offers both regular and direct plans, each with a growth option.
- Exit Load: Units can be redeemed up to 10% of the units without an exit load within 12 months from the allotment date. Any redemption in excess of this limit will be levied with a 1% exit load. Redemption thereafter will not be subject to any exit load.
Asset Allocation Strategy
The investments will be made across different asset classes dynamically following these principles:
- Equity and Equity-Related Instruments: 20-80%
- Debt and Money Market Instruments: 10-80%
- Gold ETF, Silver ETF, and Related Commodities: 10-80%
- Exchange-Traded Commodity Derivatives (ETCDs): 0-30%
- Units of REITs and InvITs: 0-10%
At least a 20% allocation to equities and at least a 10% allocation to debt, gold, and silver (or other commodities) is ensured at all times. The balance will be dynamic, varying with the conditions of the market, using an active investment approach.
Risk and Suitability
This scheme aims at long-term capital appreciation and income generation through diversified portfolios. However, the principal investment will fall in the “very high” risk category based on the riskometer of the scheme.
This offer caters to the financial needs of investors who are not averse to a higher risk-reward profile and want to invest in a combination of conventional and non-conventional assets to achieve maximum returns.
