'Data-driven investing helps create long-term wealth'

Model-driven vs human-led portfolios?

At Samco AMC, our strategy is 100 per cent model-driven and algorithm-led. We rely on systematic, rules-based frameworks, not discretionary fund manager calls. This ensures predictability, standardisation and the elimination of human biases.

We believe data-driven, disciplined investing helps create wealth over the long term. Global and domestic indices like the MSCI World Index and the Nifty 50, both fully rule-based, have delivered strong returns over decades, proving that rule-based frameworks work very well for long-term investing. While our portfolio construction is entirely algorithm-led, the human edge lies in the design, research and continuous improvement of our models.

Your first fund and trust playbook?

We are a tech-enabled, rules-based AMC that uses momentum as the core factor across all equity funds. Backed by global and Indian research, momentum has shown to be the most persistent alpha-generating factor over time.

We were the first AMC in India to design funds in the active momentum category, systematically capturing momentum while using stock-level hedging during downturns to protect capital. We’ve also introduced a multi-asset fund that dynamically rotates between equity, gold and debt, with up to 70 per cent allocation to gold—a rare feature in Indian funds.

To build investor trust, we’ve focused on:

• Investor education on suitability, risk appetite and return expectations.
• EMOSI (Equity Margin of Safety Index): A data-backed tool published daily to guide investors on when and how to invest based on market conditions.
• Transparent reporting through regular fact sheets and commentaries.

On low-friction investing and investor churn.

While digital investing has reduced friction, the common belief that it would lead to frequent portfolio churn has not played out. In fact, AMFI data (June 2025) shows increasing investor discipline: 55 per cent of equity assets are held for more than 24 months. For retail investors, that figure has risen from 51.4 per cent in June 2023 to 59.1 per cent in June 2024.

Rapid-fire questions

• One AMC you admire (not yours): PPFAS AMC.
• One hot trend you’re glad to have skipped for your investors: Thematic funds.
• Beyond returns, one criterion you want investors to judge your AMC on: Innovation and consistency.
• If not running an AMC, what would you be doing? Cricketer / life coach / stand-up comic.

This article was originally published on October 26, 2025.