Samco Equity Mutual Funds

Investment Objective

The investment objective of Samco Equity Mutual Funds is to generate long-term capital appreciation by investing in equity and equity-related instruments of companies across market capitalisation. Samco offers a range of equity mutual funds with different investment objectives and risk profiles to cater to the diverse needs of investors. Some of the common investment objectives of Samco Equity Mutual Funds are growth, value, and balanced. The funds are

managed by experienced fund managers who aim to create a well-diversified portfolio that maximises returns while managing risks.

Risks Involved in Samco Equity Mutual Funds

Samco equity mutual funds also involve specific risks that investors should know before investing. Some of the risks involved in Samco equity mutual funds are:

• Market risk. This is the risk of losing money due to fluctuations in stock prices. Market risk affects all types of equity funds, whether in large-cap, mid-cap, small-cap, or international stocks.

• Concentration risk. This is the risk of losing money due to overexposure to a particular sector, industry, company, or theme.

• Liquidity risk. This is the risk of being unable to sell or buy mutual fund units at a desired price or time due to low trading volumes or market conditions. Liquidity risk can affect the performance of equity funds that invest in illiquid or thinly traded stocks, such as small-cap or micro-cap stocks.

• Credit risk. This is the risk of losing money due to default or downgrade of the issuer of debt securities held by the mutual fund. Credit risk can affect the performance of equity funds that invest a portion of their assets in debt securities, such as hybrid or balanced funds.

• Currency risk. This is the risk of losing money due to changes in the exchange rate of foreign currencies against the Indian rupee. Currency risk can affect the performance of equity funds that invest in international stocks or foreign securities.

Return Potential of Samco Equity Mutual Funds

Considering the last five years, Samco Equity Mutual Funds have given an average return of 12% overall. This is a decent return margin for an equity fund. Investors can, with some risk, expect the pattern to imitate in coming years as well. This, however, would only be a logical inference rather than the truth. Mutual funds never guarantee returns based on past performance but are invested for the assumed capital gains. The high-return generating potential of Samco MF Equity funds makes them ideal for achieving long-term goals like children’s education, retirement planning, and home buying.

Who Should Invest in Samco Equity Mutual Funds?

This fund can be a perfect candidate for investment for investors looking to deploy their capital for a long duration, i.e. ideally more than five years. Given that mutual fund performance varies now and then as per the market conditions, Samco Equity Mutual Funds can be meant for individuals with higher risk tolerance. Samco Flexi Cap Fund is suitable for all investors who want to invest in equity markets for a minimum period of 3 years and are looking to own efficient businesses across the globe.

Things To Consider Before Investing in Samco Equity Mutual Funds

Before investing in Samco Equity Mutual Funds, here are some essential factors to consider:

• Investment Objective: Determine your investment objective and risk tolerance before investing. Samco offers a range of equity mutual funds to suit different investment objectives and risk profiles.

• Past Performance: Review the past performance of Samco Equity Mutual Funds to gauge their track record. However, past performance does not guarantee future performance, so it is essential to remember this.

• Fund Manager: The fund manager plays a crucial role in the success of a mutual fund. Look into the experience and track record of the fund manager managing the Samco Equity Mutual Fund you are interested in.

• Expense Ratio: The expense ratio is the annual fee the mutual fund charges for managing your money. A lower expense ratio means higher returns for you. Hence, comparing the expense ratios of different Samco Equity Mutual Funds is essential.

• Asset Allocation: Ensure that the asset allocation of the Samco Equity Mutual Fund aligns with your investment objective and risk profile.

• Investment Horizon: The investment horizon is when you plan to stay invested in the mutual fund. Determine your investment horizon and choose a Samco Equity Mutual Fund that aligns with it.
• Exit Load: Exit load is a fee the mutual fund charges if you exit the investment before a specific period. Check the exit load of the Samco Equity Mutual Fund you are interested in to avoid any unnecessary fees.

Tax on Samco Equity Mutual Funds

Samco ELSS Tax Saver Fund seeks to invest in equity and equity-related instruments. Therefore, it can yield higher returns than other tax-saving schemes such as PPF, debt funds, etc. ELSS funds are special equity mutual funds that qualify for a tax deduction. The dividends from equity mutual funds are tax-free in your hands. However, the dividends from equity mutual funds are paid after deducting a dividend distribution tax (DDT) of 11.6% (including surcharge & cess), reducing your returns.