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Samco
Active Momentum Fund

(An open-ended equity scheme following momentum theme)

Samco Active Momentum Fund is India’s 1st active momentum fund that aims in invests in stocks that are showing momentum characteristics using a proprietary momentum-seeking algorithm to generate superior risk adjusted returns.

Invest in

Samco Active Momentum Fund

(An open-ended equity scheme following momentum theme)

Key highlights of Samco Active Momentum Fund

SPEED AND AGILITY

The scheme will rebalance in real time as soon as the system detects a gain or loss of momentum in a particular stock.
HEDGE IN ANTI-MOMENTUM

The scheme will hedge to protect the downside when there is no or low momentum in the markets.
FINDS MOMENTUM EVEN FROM HIDDEN GEMS

The proprietary momentum-seeking algorithm scans a universe of 750 stocks, including MicroCaps to find stocks that are gaining momentum.

The momentum factor has been one of the strongest generators of excess returns.

Momentum is one of the most persistent factor to generate excess returns in all assets be it equity, commodity and forex and over 215+ years of history.
MSCI research shows, on a historical basis, the momentum factor has been one of the strongest generators of excess returns and has beaten the base index by 10X.

Source: MSCI, Samco Research. Price data for MSCI World Index and MSCI Momentum index from June 1994 till March 2023. Disclaimer: Past returns are no indication of future returns. The index returns do not indicate returns of the scheme and are only mentioned for illustration of momentum as a factor

Momentum Indices Generate HUGE alpha

Historically the two momentum indices from NSE (India) also beat the broader markets as well as their base indices by a huge margin.

Nifty500
12.24%
Nifty50
12.48%
Nifty200 Momentum 30
17.79%
Midcap 150 Momentum 50
21.28%

Source : Nifty Indices, Samco Research Disclaimer: Returns mentioned are CAGR returns from 1st April 2005 till 28th April 2023. Past returns are no indication of future returns. The index returns do not indicate returns of the scheme and are only mentioned for illustration of momentum as a factor.

Active has several advantages over passive investing

Particulars	Active	Passive
Exposure	Invested only during times of Momentum, out of markets when there is Anti-Momentum	Invested 100% of times
Rebalancing	As and when needed	Lagged at 6-month
Types of momentum used	Uses both Relative & Absolute Momentum	Uses only Relative Momentum
No. of stocks	Not fixed, based on capital and position sizing	Currently only upto 50 stocks
Universe	No restrictions. Invest across market capitalisations i.e. Large Caps, Mid-Caps, Small Caps and Micro Cap companies	Limited universe only

Scheme Features

NFO Period	15th June 2023 to 29th June 2023
Type of scheme	An open-ended equity scheme following momentum theme
Plans	Regular Plan - Growth & Direct Plan - Growth
Benchmark Index	Nifty 500 Index TRI
Minimum Application Amount	₹5000 and in multiples of ₹1/- thereafter
Minimum Additional Application Amount	₹500 and in multiples of ₹1/- thereafter
Minimum SIP Amount	₹500 and in multiples of ₹1/- thereafter [Fresh SIPs restricted post NFO, until further notice]
Entry Load	Not Applicable
Exit Load	2.00% if the investment is redeemed or switched out on or before 365 days from the date of allotment of units. No Exit Load will be charged if investment is redeemed or switched out after 365 days from the date of allotment of units.
Fund Manager	Mr. Paras Matalia Fund Manager - Equity

FAQ’s

What is a Momentum themed mutual fund?

It is a thematic fund that invests in stocks that exhibit momentum characteristics and sell those stocks when those stocks lose momentum.

Why does Momentum work?

Momentum works dues to behaviour biases of the investors in the financial markets. Investors are not always rational, they have limits to their control over emotions and are influenced by their own biases such as loss aversion, regret, anchoring and disposition biases. Because of all these human biases, there exists an opportunity in the momentum space which is more consistent and time tested strategy to make an alpha in the stock market.

What is Momentum investing ?

It is a strategy to invest in winning stocks which are 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. The momentum strategy is based on buy high, sell higher or alternatively, cut your losses and let your winners run.

How does Samco define and identify Momentum?

The scheme shall invest in stocks that exhibit momentum characteristics across market capitalisations i.e. Large Caps, Mid-Caps, Small Caps and Micro Cap companies. The fund intends to benefit from momentum in stock prices from short to medium term time frame. The fund makes trades based on trading signals generated by our intelligent algorithm. This algorithm has been developed by studying years of market data including price, volume, volatility, open interest, breakouts, relative strengths and correlations with appropriate weights on various data points. The Momentum investing is based on that gap in time that exists before mean reversion occurs. Momentum is usually seen in the short- to intermediate-term.

What is the universe for stock selection for this fund?

The universe for this fund will be Nifty 750 i.e. Nifty500 stocks and Nifty Micro cap 250 stocks.

How many stocks would the fund hold?

There is no restriction on number of stocks in the fund. The scheme will hold stocks that are in momentum as deemed fit by the fund manager.

Will this fund also follow the HexaShield Framework?

No, this scheme comes under the Distinctive Patterns Strategies which will have its own framework. This scheme does not heavily rely on quality of financials and has more emphasis on price, volume, breakouts and other technical indicators.

What is the benchmark of the scheme?

Nifty500 TRI will be the benchmark of the scheme.

What is the minimum amount of investment in SIP or Lump sum?

In order to invest in this fund the investor needs a minimum amount of:

Lump sum: ₹5,000 & in multiples of ₹1 thereafter

Systematic investment plan (SIP): ₹ 500 & in multiples of ₹1 thereafter

(Subscriptions in this scheme shall be accepted during NFO & be restricted post NFO until further notice.)

Disclaimer

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The information and data contained in this Website do not constitute distribution, an offer to buy or sell or solicitation of an offer to buy or sell any Schemes/Units of Samco Mutual Fund in any jurisdiction in which such distribution, sale or offer is not authorised. The material/information provided on this website is for the limited purposes of information only for the investors. Read more

This product is suitable for investors who are seeking* :

Long Term Capital Appreciation
An actively managed thematic equity scheme that invests in stocks exhibiting momentum characteristics

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

(The product labelling assigned during the New Fund Offer is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when actual investments are made)

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