Samco Mutual Fund Rolls Out Small Cap NFO at ₹10, Bets Big on Momentum Strategy
By Shishta Dutta | Published at: Jun 30, 2025 05:42 PM IST
Mumbai, June 30 – Samco Mutual Fund, backed by Samco Securities Ltd, has announced the launch of the Samco Small Cap Fund. It is an open-ended equity scheme that focuses predominantly on investing in small-cap shares. The recent surge in small-cap stocks, along with the success of Samco’s Large & Mid Cap Fund using the C.A.R.E. Momentum Model, is likely to spark investors’ interest in the new fund.
It is an excellent opportunity for new investors as the NFO (New Fund Order) will be issued at ₹10 per unit with plans to reopen for continuous sale and purchase post-NFO.
Scheme Snapshot
| Feature | Details |
|---|---|
| Scheme Name | Samco Small Cap Fund |
| Category | Small Cap Fund |
| Type | Open-ended equity scheme |
| Benchmark | Nifty Smallcap 250 TRI |
| NFO Price | ₹10 per unit |
| Plans Offered | Regular & Direct |
| Minimum Investment | ₹5,000 (Lump Sum); ₹500 (SIP) |
| Exit Load | 1% if >10% redeemed within 12 months |
| Fund Managers | Umeshkumar Mehta, Nirali Bhansali, Dhawal Dhanani |
Strategic Focus: Momentum-Driven Small Cap Allocation
The fund aims to generate long-term capital appreciation through a portfolio of equity and equity-related instruments of small-cap companies (ranked 251st and beyond by market cap).
Notably, the investment strategy leverages SAMCO’s proprietary C.A.R.E. framework:
- Cross-sectional Momentum: Stocks outperforming their peers
- Absolute Momentum: Directional trend confirmation
- Revenue Momentum: High top-line growth
- Earnings Momentum: Profits accelerating at PAT/PBT level
This system targets small-cap companies with strong technical and fundamental momentum, aiming to offer better risk-adjusted returns.
Asset Allocation Pattern
| Asset Class | Minimum Allocation | Maximum Allocation |
|---|---|---|
| Small Cap Equity & Related | 65% | 100% |
| Other Equity (Non-small cap & foreign) | 0% | 35% |
| Debt & Money Market Instruments | 0% | 35% |
| REITs & InvITs | 0% | 10% |
The scheme also permits derivative exposure up to 80% (hedging) and foreign securities up to 30% of total assets, in compliance with SEBI norms.
Expense Structure & Load
The maximum Total Expense Ratio (TER) is capped at 2.25% for the first ₹500 crore of net assets, reducing with AUM slabs. Entry load is nil, while exit load is 1% on redemption above 10% within 12 months, with no charge thereafter.
Distribution & Access
Units can be subscribed to via ASBA, NSE MFSS, BSE STAR MF platforms, MF Utility (MFU), and directly through Samco Mutual Fund ISAs. Investors can hold units in physical or demat form, and SIP/STP/SWP options are also available.
Compliance & Regulatory Notes
- NAVs will be published daily by 11 PM; NAVs for overseas securities by 10 AM next business day.
- KYC, nominee declaration, and PAN-Aadhaar linking are mandatory for transaction compliance.
- In line with SEBI Master Circular SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024.
About the Company
Samco Mutual Fund, sponsored by Samco Securities Ltd, is a SEBI-registered mutual fund house (Registration No: MF/077/21/03) with a focus on rules-based and technology-driven investment strategies. The fund’s AMC and Trustee companies are based in Mumbai.
REF: https://www.sebi.gov.in/filings/mutual-funds/jun-2025/samco-small-cap-fund_94859.html
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