Samco Mutual Fund has changed the nature of its newly launched flexicap scheme from 'pure equity' to 'dynamic equity' after SEBI pulled up the AMC over 'incorrect disclosures' on its website.
As per Samco MF, SEBI had an issue with its flexicap scheme being called a 'pure equity' scheme as the fund house planned to invest upto 35% in TREPS (Tri-party repo dealing & settlement), which comes under the 'cash' component. Ideally, equity funds should not hold more than 5% in cash.
Moreover, Samco MF said it has been directed by SEBI to allow investors to redeem units from the scheme without paying any exit load between February 9 and 24.
"Further, interest at the rate of 15% p.a. shall be paid to exiting unit holders from the date of closure of NFO till date of payment of amount," Samco MF said in an addendum.
Additionally, Samco said it is updating the SID of its scheme to include information pertaining to its 'hexashield investment framework' as per the direction from SEBI.
