Samco Dynamic Asset Allocation 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 so as to provide investors with long term capital appreciation while managing downside risk.

The scheme follows a dynamic asset allocation strategy, with net equity exposure ranging from 0% to 100% based on SAMCO's proprietary TRANSFORMER model. While gross equity exposure is generally maintained between 65% and 100%, derivative strategies may be used to reduce net equity exposure during adverse market conditions. The model allocates more towards equities during strong market trends and shifts towards debt when market momentum weakens or volatility rises. It also incorporates trailing stop-loss mechanisms and mean-reversion signals to manage downside risk. Portfolio rebalancing is undertaken on a real-time basis, enabling the scheme to respond promptly to changing market conditions.
Click here to learn about the Fund's investmstment strategy.

The scheme's proprietary TRANSFORMER follows a rules-based dynamic asset allocation framework that combines trend-following and mean-reversion signals to determine equity and debt exposure. It evaluates a broad range of market and macroeconomic indicators, including equity market trends, moving averages, market breadth, 52-week highs and lows, trading volumes, India VIX, credit spreads, interest rates and yield curves, relative strength across asset classes and sectors, valuation metrics such as market capitalisation-to-GDP and earnings yields, as well as rolling returns and retail participation. Based on these indicators, the model increases equity allocation during favourable market trends and gradually reduces exposure during periods of weakening momentum, elevated volatility, or adverse market conditions. It also incorporates trailing stop-loss mechanisms and extreme valuation signals to limit downside risk and identify potential market reversals. Portfolio rebalancing is undertaken on a real-time basis, enabling the scheme to dynamically respond to changing market conditions while seeking to optimise risk-adjusted returns.
An illustration of how the TRANSFORMER model will move from Equity to Debt & Arbitrage Strategies:
Click here to view the TRANSFORMER Model illustration.

The benchmark of the scheme is NIFTY50 Hybrid Composite Debt 50: 50 Index.

Entry Load: Not Applicable
Exit Load: 10% of units can be redeemed without an exit load within 12 months of allotment. Any redemption in excess of such a limit in the first 12 months will incur 1% exit load. No exit load, if redeemed or switched out after 12 months from the date of allotment of unit.

Fresh Purchase (lumpsum): Rs. 5,000/- and in multiples of Re. 1/- thereafter
Systematic Investment Plan (SIP): Rs. 500 and above: minimum 12 installments.

The fund will be jointly managed by Mr. Umeshkumar Mehta, Mrs. Nirali Bhansali, Mr. Dhawal Ghanshyam Dhanani and Mr. Vishal Shinde.