Mumbai: Samco Mutual Fund announced the launch of its ‘Dynamic Asset Allocation Fund’ (DAAF) offering unmatched investment stability and growth potential. The NFO opens December7 and closes on December 21, 2023.
Viraj Gandhi, CEO, SAMCO Mutual Fund, told media here recently that understanding the mindset of investors seeking to invest in the hybrid category was important as investors today sought FD-plus returns, limited risk and Return of Capital in unforeseen events.
He said that the DAAF has been designed to provide investors an unparalleled blend of stability, growth potential and downside protection in today’s dynamic market environment.
“This is India’s first DAAF that follows the momentum model with capability to move to debt entirely in tough times, and has focus on reducing volatility and drawdowns while optimizing returns,” “he said, adding that this fund will redefine investment experiences and set new benchmarks in the industry.
Describing SAMCO Mutual Fund as a “predominantly equity-dominant fund” which featured the game-changing DAAF Scheme’s dynamic “TRANSFORMER” model that enabled investors to navigate market fluctuations with confidence, Umeshkumar Mehta, CIO, SAMCO Mutual Fund, said that in the “Bull or Bear” market, this model highlighted ‘Transformation’ to adjust strategic equity allocation according to core trends identification via: regression models, time series, momentum indicators and so on.
“This model captures four phases of the market: 1) Accumulation, 2) Uptrends, 3) Distribution and 4) “Downtrends,” he said while noting that the COVID-19 period witnessed 96% of stocks being below 40% moving average.
He said the power of the TRANSFORMER model included: Drawdowns in the SAMCO Fund DAAF being much lower than NIFTY. “Historically, Momentum strategy has delivered,” he said.
“Only in extreme panic or euphoric conditions, the Scheme will move to mean reversion models and build equity exposure in Bear markets or cut equity exposure in Bull markets. Rebalancing based on the model shall happen on realtime dynamic basis and will not follow a monthly/quarterly rebalancing model.”
While one of the key challenges faced by investors in India has been the fear associated with market volatility and drawdowns, SAMCO Mutual Fund has developed the DAAF with focus on reducing volatility and drawdowns alongside optimizing returns and maintaining the flexibility for investors to withdraw their capital when needed.
