Samco Mutual Fund introduces "TimerSTP” a tool that endeavours to help investors generate high alpha over benchmark returns

 Samco Mutual Fund introduces "TimerSTP” a tool that endeavours to help investors generate high alpha over benchmark returns

Samco Asset Management Pvt Ltd (SAMCO AMC) introduces TimerSTP along with their Overnight Fund launch

·         To scientifically not get the timing WRONG for the investors in the markets by using its proprietary Equity Margin of Safety Index (EMOSI) indicator which determines the right time to invest more and the time to invest less in  equity scheme. 

·         To be the first AMC in India to transparently disclose EMOSI daily, which endeavors to scientifically use the margin of safety principle with TimerSTP.

 

Mumbai, September 26^th, 2022:  Samco Mutual Fund introduces “TimerSTP”.

 

TimerSTP is a tool that determines the right time to invest more and the time to invest less in equity scheme with the help of Samco’s proprietary Equity Margin of Safety Index (EMOSI) indicator which is based on the margin of safety investing principle. Therefore, when markets are high, EMOSI signals to invest cautiously, and when markets are low, allows to invest aggressively ensuring maximum equity exposure to the investors. This enables investment in the markets without any emotional bias, removes the stress of tracking the markets constantly and endeavors to offer a higher reward/risk ratio.

 

The premise of TimerSTP lies in 2 common mistakes an average investor makes. Firstly, an average investor inadvertently buys equity scheme at the top of the cycle by following herd mentality or chasing the FOMO rally. Second, an average investor exits after equities, has already fallen down substantially because of the fear and peer pressure of making higher losses. But the secret to avoiding such mistakes is by not getting the timing wrong in the markets. It isn’t important to catch the exact top or the exact bottom, it is more important to avoid entering late when markets have already run up and avoid exiting even later when markets have already seen a large drawdown from the peak. Managing the timing in investing is an essential part of generating a higher alpha over the benchmark whilst managing drawdowns efficiently.

SAMCO’s Overnight Fund is designed to incorporate the additional benefits of TimerSTP to make aggressive investments from the source scheme to the target equity scheme during panics but sits out and wait during euphoric times so as to avoid mistiming the market cycles.