Samco MF banks on stress tested portfolio

Our Bureau Mumbai | Updated on September 14, 2021

To launch flexi cap fund soon

The latest entrant into mutual fund space Samco will file papers with Sebi for launching its first scheme Flexi Cap fund which will have a provision to invest 35 per cent. The new fund offer of flexi cap is expected in less than two months.

For the first time ever, Samco Asset Management has introduced proprietary HexaShield stress test framework and will invest only in stocks that passes stress test.

It also plans to become the first AMC in India to transparently disclose active share of portfolio management on daily basis. The expense ratio of the schemes will be maintained 1.75-1.90 per cent with the target to charge one per cent expense ratio for direct plan.

Jimeet Modi, Founder and Director, Samco Asset Management said lives of businesses have become shorter over the years due to constant disruptions and businesses need to be truly resilient to survive in the market place and create shareholder value.

The stress test would identify best businesses that can employ large amount of incremental capital at very high rates of return over an extended period with high corporate governance, he said

The stress test also identifies the company's ability to sustain with even lower cash flow and regulatory stress.

Most listed companies end up failing the stress test. In fact, only 15 out of Nifty 50 index constituents pass Samco’s stress test framework.

Umeshkumar Mehta, CEO of Samco Asset Management said the fund house will refrain from launching schemes in every Sebi category and will refrain from launching schemes such as infra funds, PSU funds, Power and Energy funds, Dividend Yield funds as these categories typically to do not pass the stress test.

Going ahead, the fund house will launch two new fund offers -- Global Active and Tax Saving – and restrain from debt-oriented schemes.

Published on September 14, 2021

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