SAMCO Asset Management Private Limited, a distinguished investment management firm, is thrilled to announce the launch of the Dynamic Asset Allocation Fund (DAAF). This unique fund is designed to provide investors an unparalleled blend of stability, growth potential, and downside protection in today’s dynamic market environment.
This is India’s first DAAF that follows momentum model with capability to move to debt entirely in tough times. There does not exist similar model in the category. Models of most of the other Hybrid BAF/DAAFs follow valuation models built on P/B, P/E, etc.
One of the key challenges faced by investors in India has been the fear associated with market volatility and drawdowns. SAMCO Mutual Fund recognizes these concerns and has developed the DAAF with a focus on reducing volatility and drawdowns while optimizing returns.
With SAMCO DAAF, investors can enjoy the advantages of equity investments while minimizing drawdowns and maintaining the flexibility to withdraw their capital when needed.
SAMCO MF’s DAAF employs an innovative investment strategy based on the proprietary TRANSFORMER model. This model allows the fund to adjust its equity exposure from 0% to 100% based on market trends. By swiftly transitioning between equity and debt investments in real-time, the fund mitigates risks and curtails drawdowns, providing investors with a unique sense of security and stability.
The principal asset allocation of the fund shall be determined based on momentum in equity markets and extreme mean reversion signals which shall be calculated using SAMCO MF’s proprietary TRANSFORMER model. Fundamentally the scheme will operate based on trend following strategies i.e., when markets are in clear uptrends with lower volatility, equity allocations shall be higher and when markets are breaking down, in correction or bear market phases, net equity allocations shall be zero or at extremely low levels. Only in extreme panic or euphoric conditions, the scheme will move to mean reversion models and build equity exposure in bear markets or cut equity exposure in bull markets. Rebalancing based on the model shall happen on real time dynamic basis and will not follow a monthly/quarterly rebalancing model.
The factors for determining the Asset allocation shall be dependent on following factors: Trends in Equity Markets, Rate Spread in Bond Yields, Averages such as SMA/EMA and deviation of price from averages thereof, Net new 52-week highs and lows, Stock Price Breadth & Volumes, US Fed’s Funds Rates & Yield curve, Options Volatility & VIX, Relative Strength across Asset Classes & Securities, Market Cap to GDP Valuations & Money Supply, Equity Earnings Yields & Rolling Returns on Trailing basis & Retail trading activity.
Umeshkumar Mehta, Chief Investment Officer (CIO), SAMCO Asset Management Private Limited, said, “SAMCO Mutual Fund is proud to introduce the Dynamic Asset Allocation Fund, a result of our commitment to addressing the concerns and needs of investors in India. With DAAF, we offer a game-changing solution that combines the potential for good returns with an attempt to minimize drawdowns.
Our innovative approach, backed by the TRANSFORMER model, ensures that investors can navigate market fluctuations with confidence. We believe DAAF will redefine the way investors perceive and approach their investments, offering them peace of mind and long-term wealth creation opportunities.”
Commenting on the launch, Viraj Gandhi, CEO of SAMCO Asset Management Private Limited, said, “At SAMCO Mutual Fund, we are driven by a commitment to empower investors with innovative and robust financial solutions.
The launch of our Dynamic Asset Allocation Fund marks yet another significant step in our journey to provide investors with stability, growth, and peace of mind. We believe this fund, helmed by experienced professionals, will redefine investment experiences and set new benchmarks in the industry.”
The SAMCO DAAF’s New Fund Offering (NFO), commences on December 07, 2023, and concludes on December 21, 2023. The scheme reopens for continuous sale and repurchase within five business days from the date of allotment.
