Samco Special Opportunities Fund - Direct Growth

Samco Special Opportunities Fund is an open-ended equity scheme with an investment objective to achieve long-term capital appreciation by investing in a portfolio of securities that are involved in special situations such as restructurings, turnarounds, spin-offs, mergers & acquisitions, new trends, new & emerging sectors, digitization, premiumization, and other special corporate actions which has the potential to create superior long-term risk adjusted returns.

The Samco Special Opportunities Fund employs a unique, proprietary “DISRUPTION” Model to identify investment opportunities. This model is based on 10 distinct sub-strategies (see image below), each designed to uncover special situations within diverse themes. This systematic approach enables the fund to generate a diverse range of investment ideas, leveraging disruption and special situations to seek out potential growth and value for investors.

The Samco Special Opportunities Fund demonstrates dynamic flexibility, crucial for navigating the ever-changing landscape of sectors and themes in the investment world. Its adaptability allows it to swiftly shift focus across diverse areas such as defence, energy, railways, pharmaceuticals, and infrastructure, capitalizing on the best opportunities as they emerge rather than sticking to just one theme. This strategic flexibility ensures that the fund can adapt to and thrive in the fluid nature of market trends, offering a robust advantage to investors seeking diversified exposure and potential growth across varied sector, for compounding their wealth.

The fund is designed to be universe agnostic, meaning it does not limit its investment scope to companies of a specific market capitalization. This strategy allows the fund to explore and capitalize on special situations across the entire market spectrum, from large-cap to micro-cap companies. By not confining itself to a particular segment, the fund is able to pursue a wide range of investment opportunities wherever they may arise, enhancing its potential for capital appreciation by tapping into diverse and sometimes underexplored areas of the market.

Samco Special Opportunities Fund is suitable for investors who are seeking long term capital appreciation through an actively managed thematic equity scheme that invests in stocks based on special situations theme.

Samco Special Opportunities Fund offers five distinct benefits:

• DISRUPTION Model: The fund employs a unique, proprietary DISRUPTION Model to identify investment opportunities.
• Dynamic Flexibility: The fund exemplifies dynamic flexibility, crucial for navigating the ever-changing landscape of sectors and themes in the investment world.
• Market Cap Agnostic: The fund is designed to be market cap agnostic, meaning it does not limit its investment scope to companies of a specific market capitalization.
• Tax Efficient: The fund offers tax efficiency by managing thematic investments internally, which helps prevent the tax implications associated with frequent buying and selling of different thematic funds by investors.
• Diversification Advantage: The fund offers a diversification advantage by spreading investments across various sectors and themes, mitigating the risk associated with investing in specific thematic or sectoral funds.

For taxation purposes, Samco Special Opportunities Fund is treated as an equity scheme and taxed accordingly.

Short-term capital gains (STCG) tax: If you sell your units within 12 months of purchase, the capital gain will be classified as STCG, and tax will be levied at 15%.

Long-term capital gains (LTCG) tax: If you sell your units after 12 months of purchase, the capital gain will be classified as LTCG. Every financial year, the first Rs. 1 lakh long-term capital gain will be exempt from taxation. The incremental long-term capital gain above Rs.1 lakh will be taxed at 10%.

The Exit Load of Samco Special Opportunities Fund is as under:

• 2.00%, if the investment is redeemed or switched out on or before 365 days from the date of allotment of units
• No Exit Load will be charged if investment is redeemed or switched out after 365 days from the date of allotment of units.

There is no restriction on number of stocks in the fund. The scheme will focus on generating long-term capital growth by investing in companies that are experiencing or poised for special situations.

The fund will be jointly managed by Mr. Paras Matalia and Mr. Umeshkumar Mehta. Further, Mr. Dhawal Ghanshyam Dhanani is the dedicated Fund Manager for making overseas investments as permitted under the regulations, guidelines and circulars issued from time to time.

The Scheme performance would be benchmarked against NIFTY 500 TRI.

The fund has no specific target relating to portfolio turnover.

Dividends will not be declared by Samco Special Opportunities Fund and only growth plan would be available.