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SAMCO's HexaShield framework is intended to determine whether a corporation can withstand various macro and microeconomic stresses and compound and generate growth.

It has been raining when it comes to mutual fund houses introducing new themes for various schemes. On 14 September 2021, Samco group launched its first mutual fund strategy, which runs on “Stress Tested Investing,” which puts your money to work with businesses that can withstand and survive various adverse circumstances while generating long-term risk-adjusted profits.

Each business is subjected to six stringent tests outlined by SAMCO’s proprietary HexaShield framework, and only businesses that pass the HexaShield test are included in the investable universe.

“SAMCO Mutual Fund promise to investors is to be a truly Active Stress Tested Fund. The world of asset management is going through various disruptions, and SAMCO aims to be at the forefront of leading disruptions on the Active segment,” said Jimeet Modi, founder and Director of Samco Asset Management.

SAMCO’s HexaShield framework is intended to determine whether a corporation can withstand various macro and microeconomic stresses and compound and generate growth.

“We will build funds with high active share so that cost-conscious investors get a truly active fund and not a closet index fund when they pay for an active TER and our stress-tested investing framework gives the new age investor an authentic and not merely a generic reason to invest with us,” added Modi.

Active share

That said, for the first time in India, Samco Asset Management would be the first fund house to disclose daily active share of its schemes. This will let investors know when they are paying an active fee; it’s certainly for buying something widely different from the index.

“SAMCOs Stress Test framework results in very few companies truly passing the stress test with 70% of the index components failing it. So, we will embrace divergence from the index and disclose Active Share. SAMCO’s endeavor will be to launch only truly active funds with high active share,” pointed Modi.

New themes emerging in fund houses

Months back, Navi Mutual Fund, a part of Sachin Bansal’s Navi BFSI group, announced the launch of Navi Nifty 50 Index Fund, an open-ended equity scheme that will replicate the Nifty 50 Index at the lowest cost in the passive fund’s category.

“Navi has lowered the cost to 0.06% for the direct plan offering, which is the lowest in the index schemes category, as of today. Our goal is to be able to keep providing investment opportunities to investors at the best possible cost,” said Saurabh Jain, MD, and CEO, Navi AMC.

Similarly, NJ Mutual Fund, which has recently got a license from SEBI, will launch a Balanced Advantage Fund (BAF) on October 8, 2021. The fund will follow a rule-based investment strategy, where shares will be bought and sold based on certain pre-defined in-house rules.

With new players joining in, experts say the mutual fund industry is expected to go through the next phase of evolution bringing in more customer-friendly products.