Gold has traditionally been viewed as a safe heaven asset during periods of geopolitical risk. Furthermore, Gold has outperformed the Nifty in several periods since 2000, highlighting its historical performance across different market cycles* However, despite this performance, Gold has often been overlooked by many. This underscores the importance of Hero Assets like Gold in an investor's portfolio. Over time, Gold prices have shown a steady increase, and also benefits from depreciation of the INR against the US dollar.
*Disclaimer: The above statement is based on historical market data and is for illustrative and informational purposes only. Past performance does not guarantee or indicate future performance.

SAMCO’s ROTATE strategy helps in determining the principal asset allocation of the fund based on trends in equity markets and the prices of Gold and Silver. SAMCO’s proprietary ROTATE model analyzes market trends and extreme mean reversion signals in both equity and commodity markets. Fundamentally, the scheme will employ trend-following strategies: when markets are in clear uptrends with lower volatility, equity allocations will be higher. Conversely, during market breakdowns, corrections, or bear phases, net equity allocations will be reduced to zero or extremely low levels using hedging strategies. In such conditions, if Gold and Silver are uptrending and showing an inverse correlation to equities, the fund could allocate up to 80% of net assets—towards these precious metals. When both Gold, Silver, and Equities are trending down and showing weakness, the fund will shift its focus predominantly towards debt. The fund will only switch to mean reversion models during extreme panic or euphoric conditions, adjusting equity exposure to bear markets or reducing exposure in bull markets. Rebalancing will be carried out on a real-time, dynamic basis, without following a set monthly or quarterly rebalancing schedule.

Sources of alpha for this fund include holding a predominant allocation to Gold during uptrends when Gold exhibits an inverse correlation to equities, as well as maintaining high equity exposure in uptrends to capture a large portion of the upside. During drawdowns, net equity exposure will be reduced to protect against downside risks. Additionally, the equity portfolio will benefit from a momentum selection effect, further generating superior risk adjusted returns for investors.

The fund utilizes a momentum trend-following system, staying invested in equities only when the markets are in an uptrend. It also offers drawdown protection, minimizing losses during bear markets. The real-time allocation model enables swift reallocation between equity, debt, or Gold, without waiting for quarterly rebalancing cycles. The fund has the flexibility to transform into a predominantly gold fund when Gold trends upwards and shows an inverse correlation to equities. It is dynamic in nature, functioning as a hybrid fund that can shift between predominantly equity, Gold, or debt/arbitrage modes based on market conditions.

The fund operates under different modes with varying tax implications. In Equity Mode, the short-term capital gains (STCG) tax rate is 20% for holdings under 12 months, and the long-term capital gains (LTCG) tax rate is 12.50% for holdings exceeding 12 months. In Arbitrage Mode, which consists of 10% debt and approximately 70% arbitrage, the tax rates are the same: 20% for STCG and 12.50% for LTCG. In Gold Mode, the applicable tax rate follows the slab rate for STCG, with the LTCG set at 12.50%. To know more Click here

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

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.

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

The benchmark for this scheme is 65% Nifty 50 TRI + 20% CRISIL Short Term Bond Fund Index + 10% Domestic Price of Gold + 5% Domestic Price of Silver.