Samco Securities gets Sebi nod for MF biz, eyes acquisitions in sector

Launches 'SmartSIP' option on its Rank MF platform to enable investors to track margin of safety of individual schemes and deploy their funds accordingly

Samco Securities has recently got the in-principle nod from the Securities and Exchange Board of India (Sebi) to start its own mutual fund (MF) business.

"The MF business is part of our strategy to expand our offerings. While it is still early days, but we would like to be equity-focused and most likely build a business around actively-managed schemes. We may also look at acquisition opportunities in the MF space," said Jimeet Modi, founder and chief executive officer of Samco Securities.

On Wednesday, Samco Securities launched the 'SmartSIP' option on its Rank MF platform. By opting for 'SmartSIP', MF investors would be able to track the margin of safety (lower market price than intrinsic value) of individual schemes and deploy their funds accordingly. For instance, a scheme with high margin of safety would double-up the monthly SIP investments of the investor. On the other hand, when margin of safety is low, investor money is moved towards liquid funds.  

Samco Securities, which was set up as a discount brokerage, has been looking to diversify its business model through MF distribution and also starting its own MF business in future.

Last year, the company raised Rs 49 crore in a Series B funding round from existing promoters and Bay Capital Investment Partners, which is a London-based investment manangement firm.