Samco Large Cap Fund – Direct (G) : NFO Details

A draft document for a Samco Large Cap Fund – Direct (G) has been submitted by Samco Mutual Fund to Sebi. An open-ended equity scheme that primarily invests in large-cap stocks will be the Samco Large Cap Fund.  The scheme's investment goal is to produce long-term capital growth from a diverse portfolio that primarily consists of large-cap company shares and equity-related securities. The Nifty 100 TRI will serve as the scheme's benchmark. Umeshkumar Mehta, Dhawal Ghanshyam Dhanani, and Nirali Bhansali will oversee it.Both regular and direct plans with growth opportunities will be available under the large cap scheme. Within a year of allocation, 10% of units may be redeemed without an exit load.

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Details of the NFO: Samco Large Cap Fund – Direct (G)

Investment Objective and Strategy

Objective:

The investment objective of Samco Large Cap Fund – Direct (G) is to generate long-term capital appreciation from a diversified portfolio predominantly consisting of equity and equity related instruments of large cap companies.

There is no assurance that the investment objective of the scheme will be achieved.

Investment Strategy:

• Cross-sectional momentum is the core criterion for stock selection which identifies and invests in top-performing large-cap stocks with consistent price strength, outperforming their sector and indices.
• Absolute momentum assesses the directional trend of stocks or the market, regardless of relative performance. If the trend turns negative, the fund employs tactical measures, including derivatives and hedging, to reduce net equity exposure and protect against drawdowns.
• Revenue momentum focuses on companies with strong top-line growth, highlighting those with consistent sales increases that precede earnings growth. This approach ensures the portfolio includes growth stocks that can sustain market leadership and capture long-term value creation.
• Earnings momentum identifies companies with rapid growth in profitability at the PBT (Profit Before Tax) and PAT (Profit After Tax) levels, reflecting their ability to translate operational efficiency and revenue growth into shareholder value.

Risk Associated with this NFO

• Equity and equity related securities are volatile and prone to price fluctuations on a daily basis. The liquidity of investments made in the Scheme may be restricted by trading volumes and settlement periods. Settlement periods may significantly by unforeseen circumstances. The inability of the Scheme to make intended securities purchases, due to settlement problems, could cause the Scheme to miss certain investment opportunities. Similarly, the inability to sell securities held in the Scheme would result at times, in potential losses to the Scheme, should there be a subsequent decline in the value of securities held in the Scheme portfolio. Also, the value of the Scheme investments may be affected by interest rates, currency exchange rates, changes in law/policies of the government, taxation laws and political, economic or other developments which may have an adverse bearing on individual Securities, a specific sector or all sectors.

• Investments in equity and equity related securities involve a degree of risk and investors should not invest in the equity Schemes unless they can afford to take the risk of losing their investment.

• Securities which are not quoted on the stock exchanges are inherently illiquid in nature and carry a larger liquidity risk in comparison with securities that are listed on the exchanges or offer other exit options to the investors.