NFO Alert: Samco Mutual Fund launches Samco Dynamic Asset Allocation Fund; all you need to know

NFO Alert: Samco Mutual Fund launches Samco Dynamic Asset Allocation Fund; all you need to know

The scheme opened for public subscription on December 07, 2023, and will close on December 21, 2023. The scheme re-opens for continuous sale and repurchase within five business days from the date of allotment.

What kind of mutual fund scheme is this?

This is an open-ended dynamic asset allocation fund.

Commenting on the launch, Viraj Gandhi, CEO, SAMCO Asset Management, said, “At SAMCO Mutual Fund, we are driven by a commitment to empower investors with innovative and robust financial solutions. The launch of our Dynamic Asset Allocation Fund marks yet another significant step in our journey to provide investors with stability, growth, and peace of mind. We believe this fund, helmed by experienced professionals, will redefine investment experiences and set new benchmarks in the industry.”

This product is suitable for investors seeking

  • Capital appreciation and income generation over medium to long term
  • Investment in a dynamically managed portfolio of equity and equity-related instruments and debt & money market securities

What is the main objective of investing in this fund?

The investment objective of the scheme is to generate income/long-term capital appreciation by investing in equity, equity derivatives, fixed-income instruments, and foreign securities. The allocation between equity instruments and fixed income will be managed dynamically to provide investors with long-term capital appreciation while managing downside risk. However, there can be no assurance or guarantee of the investment objective of the scheme.

Umeshkumar Mehta, Chief Investment Officer (CIO), SAMCO Asset Management, added, “SAMCO Mutual Fund is proud to introduce the Dynamic Asset Allocation Fund, a result of our commitment to addressing the concerns and needs of investors in India. With DAAF, we offer a game-changing solution that combines the potential for good returns with an attempt to minimize drawdowns. Our innovative approach, backed by the TRANSFORMER model, ensures that investors can navigate market fluctuations with confidence. We believe DAAF will redefine the way investors perceive and approach their investments, offering them peace of mind and long-term wealth creation opportunities.”

How may one invest in this scheme?

Investors can invest under the scheme with a minimum investment of 5000 per plan/option and in multiples of Re 1. There is no upper limit for investment.

Under normal circumstances, the asset allocation of the scheme will be as follows:


Indicative allocations (% of total assets)

Risk Profile



Equity & Equity related instruments including derivatives



Very High

Debt and Money Market Instruments, including Units of Debt oriented mutual fund schemes



Low to Moderate

Are there similar mutual funds in the market?

To date, many asset management companies (AMCs) have launched such funds in the past, thus, allowing investors to benefit from the hybrid nature of fund management.

Name of the fund house

Name of the fund

10-year returns (in %)

HDFC Mutual Fund

HDFC Balanced Advantage Fund


Nippon India Mutual Fund

Nippon India Balanced Advantage Fund


ICICI Prudential Mutual Fund

ICICI Prudential Balanced Advantage Fund


Edelweiss Mutual Fund

Edelweiss Balanced Advantage Fund


Aditya Birla Sun Life Mutual Fund

Aditya Birla Sun Life Balanced Advantage Fund


HSBC Mutual Fund

HSBC Balanced Advantage Fund


Invesco Mutual Fund

Invesco India Balanced Advantage Fund


Source: AMFI (As of December 06, 2023)

How will the scheme benchmark its performance?

The scheme’s performance would be benchmarked against the NIFTY50 Hybrid Composite Debt 50: 50 index. The scheme invests in both equity and debt using an active asset allocation approach to manage risk. The NIFTY50 Hybrid Composite Debt 50:50 index seeks to track the performance of a portfolio having a blend of 50% equity and 50% debt. The NIFTY50 Hybrid Composite Debt 50:50 index being the most appropriate of the available benchmarks reflecting the investible universe of the scheme, is being used as a benchmark.

Are there any entry or exit loads to this scheme?

This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” would be charged as per the following:

25% of the units allotted may be redeemed without any exit load, on or before completion of 12 months from the date of allotment of units. Any redemption over such limit in the first 12 months from the date of allotment shall be subject to the following exit load:

– 1% if redeemed or switched out on or before completion of 12 months from the date of allotment of units; 

– Nil, if redeemed or switched out after completion of 12 months from the date of allotment of units.

Who will manage this scheme?

The fund will be jointly managed by Paras Matalia (equity portion), Umeshkumar Mehta (equity portion), and Abhiroop Mukherjee (debt portion). Further, Dhawal Ghanshyam Dhanani is the dedicated fund manager for making overseas investments as permitted under the regulations, guidelines, and circulars issued from time to time. 

Does the fund contain any inherent risk?

The scheme involves “Very High Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.


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Published: 06 Dec 2023, 07:35 PM IST

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