(An open-ended equity scheme predominantly investing in small cap stocks)
This Fund is built on a cutting-edge momentum-based investment strategy that seeks to harness the power of market trends and corporate performance metrics. The fund aims to identify small cap stocks with strong Cross sectional, Absolute, Revenue, & Earnings Momentum. By focusing on companies ranked between 251 & 750 by market capitalization, the fund aims to capture growth opportunities from largely undiscovered segment of the markets.
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Cross-sectional momentum
is the core criterion for stock selection which identifies and invests in top-performing small-cap stocks with consistent price strength, outperforming their sector and indices.
Absolute momentum
assesses the directional trend of stocks or the market, regardless of relative performance. If the trend turns negative, the fund employs tactical measures, including derivatives and hedging, to reduce net equity exposure and protect against drawdowns.
Revenue momentum
focuses on companies with strong top-line growth, highlighting those with consistent sales increases that precede earnings growth. This approach ensures the portfolio includes growth stocks that can sustain market leadership and capture long-term value creation.
Earnings momentum
identifies companies with rapid growth in profitability at the PBT (Profit Before Tax) and PAT (Profit After Tax) levels, reflecting their ability to translate operational efficiency and revenue growth into shareholder value.
Momentum is one of the most persistent factors to generate excess returns in all assets be it equity, commodity and forex in over 215+ years of history.
MSCI research shows, on a historical basis, the momentum factor has been one of the strongest generators of excess returns and has beaten the base index by ~15X.
| Index | CAGR | Average 1 Year Rolling Return | Average 3 Years Rolling Return |
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| S&P SmallCap 600 Momentum Index (USD) (TR) | 10.55% | 12.98% | 32.93% |
| S&P SmallCap 600 Value (TR) | 8.46% | 11.34% | 27.00% |
| S&P SmallCap 600 Quality (TR) | 9.72% | 11.80% | 30.64% |
| S&P SmallCap 600 Growth (TR) | 9.01% | 11.85% | 29.96% |
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Type of scheme
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An open-ended equity scheme predominantly investing in small cap stocks
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Plans
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Regular - Growth
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Benchmark Index
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Nifty Small cap 250 TRI
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Minimum Application Amount
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₹5,000 and in multiples of ₹1/- thereafter
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Entry Load
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Not Applicable
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Exit Load
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Fund Manager
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Umeshkumar MehtaDirector, CIO & Fund Manager 
Nirali BhansaliFund Manager 
Dhawal G. DhananiFund Manager |
Small Cap companies are the 251st-750th companies in terms of market capitalization. Small Cap Funds are those equity-oriented mutual funds that invest primarily in small cap companies.
It is a strategy to invest in winning stocks which are showing strong momentum. Momentum stocks are such that exhibit positive price momentum - based on the phenomenon that stocks which have performed well in the past relative to other stocks (winners) continue to perform well in the future, and stocks that have performed relatively poorly (losers) continue to perform poorly. The momentum strategy is based on buy high, sell higher or alternatively, cut your losses and let your winners run.
Momentum works due to behaviour biases of the investors in the financial markets. Investors are not always rational, they have limits to their control over emotions and are influenced by their own biases such as loss aversion, regret, anchoring and disposition biases. Because of all these human biases, there exists an opportunity in the momentum space which is more consistent and time-tested strategy to make an alpha in the stock market.
Samco Small Cap Fund uses a cutting-edge momentum-based strategy with SAMCO's proprietary C.A.R.E. Momentum system to deliver superior risk-adjusted returns. It identifies small cap stocks with strong momentum in Cross Sectional, Absolute, Revenue, and Earnings Momentum. These parameters ensure that the portfolio remains optimized by focusing on small cap stocks from the companies ranked beyond 250+ by market capitalization, as defined by the AMFI, that exhibit robust momentum traits. The Investment universe of the fund shall primarily be focused on Universe of companies from Market cap Rank 251 - 750. This will allow the fund to also build exposure to small caps beyond the NIFTY500 Universe.
Samco Small Cap Fund uses C.A.R.E Momentum Strategy which invests in small cap stocks that are showing momentum characteristics in Cross Sectional, Absolute, Revenue, and Earnings Momentum to deliver superior risk-adjusted returns. The fund will invest between 65%-100% of assets in companies beyond rank 250+ by market capitalisation, also referred to as Small cap companies. The fund also has the flexibility to invest 0-35% of assets in companies other than small caps or international stocks or in debt/money market instruments. The scheme may use derivatives instruments for purposes of hedging up to 80% of net assets and shall not exceed 50% of net assets for other than hedging purposes.
The minimum investment amount for lumpsum is Rs.5,000 and in multiples of ₹1/- thereafter and for Systematic Investment Plan (SIP) it is Rs. 500 and in multiples of ₹1/- thereafter.
There is no entry load applicable. 10% of units can be redeemed at any time without an exit load. Any redemption in excess of 10% of units will incur 1% exit load in the first 12 months. No exit load, if redeemed after 12 months from the date of allotment of unit.
The fund will be jointly managed by Mrs. Nirali Bhansali, Mr. Umeshkumar Mehta, Mr. Dhawal Ghanshyam Dhanani.
The benchmark for this scheme is the Nifty Smallcap 250 Total Returns Index.
If you need any help and assistance regarding investment, reach out to us on
| This product is suitable for investors who are seeking* : |
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**Investors should consult their financial advisers if in doubt about whether the product is suitable for them. |
Disclaimer : "Samco Small Cap Fund - Regular - Growth” is managed by Samco Asset Management Private Limited which is a subsidiary entity of Samco Securities Limited. Accordingly, your transactions in “Samco Small Cap Fund - Regular - Growth” involves potential conflicts of interest and Samco Securities Limited shall receive commissions from its associate entity. Each prospective investor should carefully consider and evaluate such conflicts of interest before deciding to invest in the Fund.
Mutual fund investments are subject to market risks, read all scheme related documents carefully.
