White Oak Capital Files Paper with SEBI for Digital Bharat Fund

White Oak Capital Mutual Fund has taken a significant step in enhancing its investment offerings by filing the necessary documents with the Securities and Exchange Board of India (SEBI) to launch the Digital Bharat Fund. This new open-ended equity scheme aims to tap into the booming technology sector in India, focusing on companies that are either technology-centric or significantly benefit from technological advancements. Below, we dive into the key details of the fund, including its investment objectives, the areas it will target, and the expertise behind its management.

Investment Objective

The primary objective of the White Oak Capital Digital Bharat Fund is to achieve long-term capital appreciation by investing predominantly in equity and equity-related instruments of technology and technology-related companies. This mutual fund aims to capitalize on the growth potential of businesses that are integral to India’s digital transformation. It’s important to note that, while the fund will strive to meet its objective, there is no guarantee of returns.

Where Will the Scheme Invest?

The Digital Bharat Fund is a sectoral mutual fund that will primarily invest in companies within the technology and telecommunications sectors. These investments will include, but are not limited to:

• IT Services and Software Companies: Including those involved in consulting, outsourcing, and product development.
• Hardware and Electronic Components Manufacturing: Companies that produce IT hardware, including computers and related equipment.
• Internet and E-commerce Companies: Firms that operate digital platforms, offer internet-based services, or engage in e-retail and fintech solutions.
• Telecommunications and Infrastructure Providers: This includes networking services, wireless and wire-line services, and supporting software and hardware providers.
• Data Solutions Providers: Companies involved in data centers, data management, and hardware components for data solutions.
• Media and Information Services: Firms that provide digital content and distribute information.

The fund will also explore opportunities in emerging technology sectors and initial public offerings (IPOs) of companies that align with its investment criteria.

Fund Management Expertise

The Digital Bharat Fund will be managed by a team of seasoned professionals at White Oak Capital Asset Management Limited. The lead fund manager for this scheme is Mr. Ramesh Mantri, who brings over 20 years of experience in the financial markets. He is supported by Ms. Trupti Agarwal and Mr. Dheeresh Pathak, both of whom have extensive backgrounds in managing equity investments.

Investment Strategy

This mutual fund will employ a bottom-up approach to stock picking, focusing on companies that are expected to benefit from technological advancements and digital transformation. The fund’s strategy revolves around identifying businesses with superior returns on capital, scalable long-term opportunities, and strong governance frameworks. White Oak’s proprietary valuation approach, known as the OpcoFinco Framework, will be used to evaluate the intrinsic value of potential investments.

Benchmark and Risk Consideration

The scheme’s performance will be benchmarked against the BSE Teck TRI, which includes companies from the information technology and telecommunications sectors. Given its sectoral nature, the fund carries a higher level of risk due to its focus on a specific segment of the market. Potential investors should be aware that the fund is subject to market risks, liquidity risks, and sector-specific risks that could impact returns.

Conclusion

The White Oak Capital Digital Bharat Fund is a promising opportunity for investors looking to capitalize on India’s digital growth story. 

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.