WhiteOak Mutual Fund Files Draft for WhiteOak Capital Equity Savings Fund

WhiteOak Capital Mutual Fund has recently filed a draft for its proposed WhiteOak Capital Equity Savings Fund. This scheme falls under the hybrid-equity savings category, targeting a balanced mix of equity, arbitrage, and debt investments. Below is a breakdown of the fund’s objectives and structure.

Investment Objective & Strategy

The WhiteOak Capital Equity Savings Fund is designed to generate capital appreciation by investing in equity and related instruments, while also leveraging arbitrage opportunities and fixed-income securities. The fund aims to maintain a diversified portfolio, balancing equity and debt to cater to varying market conditions. Investors should note, however, that achieving the fund’s objectives is not guaranteed.

Asset Allocation

The fund plans to allocate:

• 65-90% to equity and equity-related instruments, with up to 40% in unhedged positions.
• 10-35% in debt securities, money market instruments, and government securities.
• An optional 0-10% in Exchange-Traded Commodity Derivatives (ETCDs) or units issued by Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).

This allocation provides flexibility to navigate the market while adhering to SEBI regulations.

Benchmark & Riskometer

The scheme’s performance will be benchmarked against the NIFTY Equity Savings TRI, bringing out its blended investment strategy. The fund’s risk level, as indicated by the SEBI riskometer, is expected to cater to investors seeking moderate risk with the potential for steady returns.

Entry & Exit Provisions

Units of the fund will be offered at ₹10 during the New Fund Offer (NFO) period. Investors can expect a 0.25% exit load if they redeem or switch units within seven days of allotment. Post this period, no exit load applies.

Key Considerations

The WhiteOak Capital Equity Savings Fund stands out for its use of arbitrage strategies and its multi-asset allocation approach. However, as this is a new fund, its past performance data is unavailable. Investors are advised to evaluate the scheme’s suitability based on their financial goals and consult with advisors if necessary.

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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.