 "AMCs, Asset management companies")
Samco Asset Management expects to mop up Rs 500 crore from its new fund offer that tracks long-term capital growth through undervalued or overlooked opportunities, a top company official said on Thursday.
The new fund offering (NFO) would open on May 17 and conclude on May 31.
In an interaction with PTI, Umeshkumar Mehta, Chief Investment Officer of Samco Mutual Fund, said the objective of the fund is to achieve long-term capital appreciation by investing in a portfolio of securities "that are involved in 10 special situations".
These "situations" include digitisation, spin-offs & corporate actions, reform-based strategy, undervalued holding companies strategy, trends sustainable over time, innovation & technological disruption, and new & emerging sectors.
These 10 sub-strategies define the "disruption" model and are weaved around different corporate actions. These situations often create mispricing and undervalued opportunities that the fund aims to exploit for potential capital appreciation, Mehta said.
"This strategy allows the fund to explore and capitalise on special situations across the entire market spectrum, from large-cap to micro-cap companies.
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"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 under-explored areas of the market," he added.
According to him, the fund has set an internal target of garnering Rs 500 crore during the NFO.
In addition, tax efficiency is another key feature of the Samco Special Opportunities Fund.
"By managing thematic investments internally, we aim to prevent the tax implications associated with the frequent buying and selling of different thematic funds by investors.
"This approach minimises additional tax burdens, potentially enhancing overall returns by avoiding the tax drag that can occur with individual transactions in thematic funds," he added.
Earlier, WhiteOak Capital Mutual Fund launched its Special Opportunities Fund. The scheme will be open for subscription till May 29. The fund focuses on opportunities arising out of situations spawning uncertainties in the market.
Explaining the interest in the special opportunities fund, Mehta said such funds fall under thematic category. As bull markets are maturing, investors have an appetite for unconventional strategies to create wealth, he added.
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