Stock Basket by SAMCO Securities

Published on Monday, October 14, 2019 by Chittorgarh.com Team

Stock Basket by SAMCO Securities is an investment platform for retail investors. Each basket is carefully designed to achieve a financial goal by adding expert-selected stocks based on 25 intelligent proprietary frameworks of stock rating parameters. Baskets are continuously monitored, and stocks are added or removed, based on their performance, from time to time. StockBasket is not a recommended platform for short term traders. Because it is designed in a way to create wealth for retail investors for a long-term perspective. The minimum recommended period to invest in StockBasket by SAMCO experts is a minimum of 5 years. SAMCO has 26 baskets, each catering to a specific financial goal. Some of the baskets include:

• International Vacation Basket to fulfil dreams of travelling across the globe.
• Leaders of Tomorrow to help investors create wealth.
• India's Biggest Brands for investments in the biggest and largest brands in the country.
• Retire in 2040 to create a retirement corpus by 2040.
• 4x target in 10 years to achieve 4 times growth.

Key Features of Stock Basket by SAMCO Securities:

• Generates wealth through compounding benefits over a minimum period of 5 years.
• Designed for a long-term perspective of 5 years and more.
• A basket contains stocks of top Indian companies.
• A StockBasket for investors is well-diversified with multiple stocks.
• Each basket has 6 to 25 stocks.
• Each basket is aligned to a specific financial goal.

Why Retail Investors Lose Money?

Many retail investors lose money in the stock market due to the following mistakes:

• Unable to pick good quality stocks
• Don't hold for long-term
• Under diversification (Investing heavily in the same stock, sector or different instruments of the same company)
• Over diversification (investing in a large variety of stocks, segments, sectors etc.)

Around 95% of retail investors lose money because they don't buy good stocks and don't invest for the long-term. There are around 5000 companies listed on the share market. Choosing good stock is a difficult task. To resolve all such issues as mentioned above, SAMCO Securities has designed the StockBasket app. Users can download the app on their Android and iOS devices and execute orders through the SAMCO execution platform.

Most of the investors are attracted to returns and take high risk while investing in the stock market. But when they are unable to tolerate the market volatility, they sell in panic resulting in losses. With well researched and ready-made stocks available in the Stock Basket, investors only need to subscribe and track the performance over a period of time.

Note:

• Under diversification: Investing heavily in the same stock, sector or different instruments of the same company. In this case, the risk is very high.
• Over diversification: When the investments are in a large number of segments, securities, and sectors. This makes portfolio handling and managing a difficult task.

How is a Samco Stock Basket built?

Stocks are divided into four categories, which are: Financial Goals, Long-term Themes, Risk Appetite, and Horizon or Investment term. Retail investors can choose a suitable basket as per their preferences.

For example, as per their financial goals, investors can choose Retirement Basket, Vacation Plan Basket, etc. Similarly, to achieve long-term goals, they can invest in health & wellness, and bet on India's large consumer population.

What is the Bond Test?

Bond test concentrates on the return of capital and producing a return on capital. Each basket in the Stock Basket by SAMCO is designed to pass the bond test and generate absolute returns for a period of 5-years from the date of investing.

If any basket fails to produce returns less than 0% after holding for 5-years, SAMCO promises to refund the entire research subscription fees charged during the period.

How to Invest in Samco Stock Basket?

The investing process is simple. Here are the steps:

1. Open a Demat and trading account with SAMCO Securities for free.
2. Download the StockBasket app and log in through the credentials provided by SAMCO securities.
3. Explore and choose a basket among 26 Stockbaskets.
4. Execute the order in a single click through SAMCO's execution trading platform.
5. Watch the performance over a period of time.

Samco Stock Basket Charges

SAMCO charges transactions and annual subscription fees for the StockBasket platform.

1. Transaction Fee

   For buying the basket, the transaction fee is zero. But while exiting the basket, investors have to pay exit charges which depend on the holding period. If you withdraw from the scheme before 5-years, you have to pay double of applicable exit charges.

2. Rebalancing Fees

   This fee will be billed to your account at the time of executing the rebalancing (adding or removing stocks) order.

3. Annual Subscription Fee

   This is an annual subscription fee deducted from the SAMCO ledger account every quarter. Every basket has different subscription charges. To know the subscription charges for a particular scheme, check the description segment of it.

   The subscription fee has a 5 year refund guarantee. If absolute returns generated by the stocks in the basket are less than 0%, SAMCO will refund the subscription fee charged during the period. Because, as per SAMCO, you are paying for quality research.

Advantages of Samco Stock Basket

• The fee for the stock basket is 50% cheaper than mutual funds, almost 70% cheaper than Portfolio Management Services (PMS) and almost 80% cheaper than research services provided by stock brokers.
• Designed to achieve specific financial goals
• Creates wealth through long-term investments which is less risky than short-term trading.
• Easy equity investments with readymade stock picks
• In-built Risk Management Systems
• Baskets managed by experts so saves time of investors
• Inculcates financial discipline and long-term approach

Disadvantages of Stock Basket by SAMCO

• Have to pay a double exit fee for withdrawing before 5-years. So, investments cannot be used in urgent situations.
• Not designed for short term gain.
• Doesn't allow to customize the Stocks list in the ready-made StockBasket.
• Not suitable for traders as buying/selling stocks frequently for short-term gain is not the purpose of the scheme.

Conclusion

Stock Basket by SAMCO is good for new and busy long-term investors who don't have much time or expertise to research and pick stocks. As compared to other options such as mutual fund, research broker and PMS services, it charges comparatively lesser fees. SAMCO also guarantees to refund the subscription fee if less than 0% absolute returns are generated over a 5-year by a basket. Overall, a good investment choice for investors who want to plan their finances and achieve specific financial goals.

Read more about SAMCO

• SAMCO Broker Review
• SAMCO Brokerage Charges, Fees, AMC, Transaction Charges
• SAMCO Securities Limited FAQs
• SAMCO Demat Account Review
• SAMCO Mobile App Review
• SAMCO Account Opening Process Review
• SAMCO Branch Offices / Sub Brokers / Franchise
• Apply in IPO through SAMCO
• SAMCO Exposure
• Trading Software Review
• Complaint Against SAMCO
• SAMCO Margin Funding - CashPlus, StockPlus & IntraPlus Explained
• Stock Basket by SAMCO Securities
• SAMCO Options Trading Platform Review