Upcoming NFO: WhiteOak Capital Mutual Fund Launches WhiteOak Capital Diversified Equity Small Cap Active FOF

WhiteOak Capital Mutual Fund’s WhiteOak Capital Diversified Equity Small Cap Active FOF is an open-ended fund of funds that will invest mainly in equity-oriented small-cap mutual fund schemes.  

The scheme’s stated objective is to generate long-term capital appreciation. The scheme is classified as an Equity Oriented FOF (Domestic) – Diversified FOF. It is a new scheme and does not have a performance record or portfolio holdings at present.  

WhiteOak Capital Mutual Fund does not have another FoF scheme currently.  

Where the Money Will Go 

Under the proposed allocation, 95% to 100% of the scheme’s total assets will be invested in units of equity-oriented small-cap mutual fund schemes.  

Between 0% and 5% can be held in debt and money market instruments, government securities, T-Bills and TREPS.  

The fund will invest across more than one small-cap mutual fund scheme. The underlying funds can have different investment styles, methods of building portfolios and approaches to selecting stocks. 

Selection of Underlying Funds 

The allocation between underlying schemes can change based on relative valuations, market and liquidity conditions, the track record and investment process of fund managers, portfolio overlap and the risk-return profile of the schemes. 

Other factors listed in the scheme document include sector opportunities, earnings outlook and changes in the macroeconomic and regulatory environment.  

The portfolio may also be rebalanced periodically depending on market conditions and the underlying schemes selected.  

Benchmark and Costs 

The scheme will be benchmarked against the Nifty Smallcap 250 TRI. Its units are not proposed to be listed on a stock exchange. Subscriptions and redemptions will be available at NAV-related prices on every Business Day after the NFO period.  

The NFO price is ₹10 per unit. The minimum investment is ₹500 during the NFO and ₹100 during the ongoing offer period. There is no entry load, while a 1% exit load applies when units are redeemed or switched out within one year.  

The estimated investment management and advisory fee is up to 2.10% of daily net assets. The document also highlights volatility and liquidity risks associated with small-cap investments.  

Read More: Upcoming NFO: The Wealth Company Mutual Fund Files for Wealth Company Life Cycle Fund! 

Conclusion 

The scheme will invest in a group of small-cap mutual fund schemes, with the allocation reviewed and changed based on stated investment factors. It will use the Nifty Smallcap 250 TRI as its benchmark. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.