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International Mutual Fund: Portfolio review of SAMCO Flexi Cap Fund

SAMCO Flexi Cap Fund is one of the few mutual fund schemes available to Indians looking to invest in global stocks. However, SEBI’s restriction on international funds investing overseas continue. “Sebi has directed on the restriction of fresh investments outside India on account of overseas investments hitting RBI prescribed limit. However, SAMCO Flexi Cap Fund continues to invest in India and is open for subscription since the reopening of the scheme in February 2022. As overseas investment restrictions are lifted, we would rebalance our portfolio according to the market conditions and valuations at the time,” informs Nirali Bhansali, Equity Fund Manager, SAMCO MF. Nirali Bhansali and Dhawal Ghanshyam Dhanani (Fund Manager for overseas investments) are the fund managers of the scheme.

The scheme will hold a minimum of 65% in Indian equities and a maximum of 35% can be there in global stocks. Further, being a flexi-cap fund, this open-ended equity scheme invests across large-cap, mid-cap, and small-cap stocks. There are two plans of the scheme – Samco Flexi Cap Fund – Regular Plan and Samco Flexi Cap Fund – Direct Plan, both offering only the growth option.

Also Read: Parag Parikh Flexi Cap Fund December factsheet; check exposure to foreign stocks

The scheme’s benchmark index is the Nifty 500 Index TRI while the fund holds a total of 25 stocks from across the globe including Indian markets. “SAMCO Flexicap Fund invests in 25 high-quality companies that can compound their earnings over a long period of time. Keeping the number at 25, we have taken high-conviction investment ideas and have backed them up with sizeable allocation, keeping our active share amongst the highest in the category.”

Also Read: Stock market expecting Fed to be less aggressive ahead of next FOMC meeting

A little over 50% of the portfolio consists of stocks Bajaj Finserv, Bajaj Finance, Tata Consultancy Services, Coforge, Computer Age Management Services, Jubilant Foodworks, L&T Technology Services, Aditya Birla Capital, J B Chemicals and Pharma, as of December 31, 2022. Almost 50% of the portfolio is across IT – Software, Finance, Insurance, and Consumer Durables sectors.

The foreign stock portfolio consists of Microsoft, Novo Nordisk A/S (ADR), Alphabet, Meta Platforms, Mastercard and IDEXX Laboratories.

The scheme follows HexaShield tested framework, a proprietary framework using AI / ML technology that tests 6 important factors of businesses under various situations. “ This is a strategy to put money to work with businesses that can endure and survive in a variety of stressful situations and generate superior long-term risk-adjusted returns. We believe that the source of all long-term returns is simple – businesses generating high returns on capital and their ability to reinvest at incrementally high rates. We are seeking a sustainably high rate of return which means businesses should sustain these returns across cycles and time periods,” says Nirali Bhansali.


Inception Date: 04-Feb-2022

AUM (as of 2022-12-31) was Rs 685.29 Crores.

NAV Regular fund – 9.1600 (as of 2023-01-13)

NAV Direct fund – 9.2900 (as of 2023-01-13)

Total Expense Ratio (TER) as on March 31, 2022

Regular Plan: 2.48%

Direct Plan: 0.89%

This is what Nirali Bhansali, Equity Fund Manager, SAMCO MF has to say on the outlook on global stocks in 2023.
The global economy is estimated to grow albeit at a slower pace in the calendar year 2023 with the inescapable tightening of financial conditions across the globe, China’s surging COVID cases, and the aftermath of the Russia-Ukraine conflicts.

However, recent Fed commentary and minutes of the meeting subtly suggest that they would be dictated to pivot and hint at trimming interest rates sometime next year, first, by pausing and then reducing the rates in second-half CY2023. This would eventually result in a sustained recovery of asset prices (more so, equities), which would ultimately lead to the start of the bull market across the globe.

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