Samco Mutual Fund is targeting to mop up Rs 5,000 crore in its new fund offer (NFO) scheduled for a January 2022 launch.
By VIRENDRA SINGH RAWAT
LUCKNOW, Nov 24 (The CONNECT) - Homegrown Samco Mutual Fund is targeting to mop up Rs 5,000 crore in its new fund offer (NFO) scheduled for a January 2022 launch.
“We have lined up three mutual fund products for the launch next year, of which our flexi portfolio offering will come in January 2022. We target to garner Rs 5,000 crore in the NFO subscription,” Samco Asset Management founder and director Jimeet Modi said talking to media here.
NFO refers to a first-time subscription offer for a new scheme that has been launched by an asset management company.
Modi said Uttar Pradesh was among the most promising and growing mutual fund markets in India with the current industry asset under management (AUM) of almost Rs one trillion. “We are looking to register nearly Rs 500 crore in the NFO subscription in UP alone.”
He claimed UP is now among the top contributors in “direct” mutual fund investments owing to growing investors’ awareness and digitalisation of the ecosystem.
“We are planning to expand our footprint in UP and onboard 20-25 percent of the total nearly 10,700 mutual fund distributors in the state,” he said adding the state was, however, still underpenetrated and had a large untapped potential for the MF industry.
Modi said Samco Group was the first Indian company to introduce a ‘stress tested investing’ model to ensure better returns to investors and without any hidden cost component. He said the unique financial model had been developed in house by the R&D team, which was probably a first globally.
“Samco will also transparently disclose daily Active Share to investors, so they know that when they are paying an active fee then it is certainly for buying something widely different from the Index,” he added.