WhiteOak Capital Asset Management has announced the launch of its new financial offering (NFO), the WhiteOak Capital Equity Savings Fund. The scheme is crafted to deliver capital appreciation through investments in equity and equity-related instruments, arbitrage prospects, and debt and money market instruments.
The fund is aligned with the Nifty Equity Savings TRI and managed by an efficient team including Ramesh Mantri and Trupti Agrawal. Under normal conditions, the fund will allocate 65% to 90% of its portfolio to equity with a significant portion in hedged-arbitrage opportunities.
The fund is particularly suitable for investors in higher tax brackets seeking tax-efficient returns, being classified as an equity-oriented fund for taxation purposes. It will offer a moderate but effective alternative to traditional fixed-income instruments.
"Investing is all about optimising outcomes by balancing upside capture with downside protection. While retail investors have been big participants in equity funds, in volatile times hybrid funds like our Equity Savings Fund are ideal for investors seeking stable returns over the medium term as it generates returns through a combination of Equity, Arbitrage, Debt and REITs/InVITs predominantly," said Aashish Somaiyaa, CEO of WhiteOak Capital Asset Management.
Features
> The open-ended scheme belongs to the hybrid equity savings category and utilizes a blended investment approach. > Its objective is to achieve capital appreciation by combining equity exposure, arbitrage opportunities, and debt instruments. > A minimum investment of Rs 500 is necessary, with additional investments in increments of Rs 1. > Investors have the option to select either the Direct Plan or Regular Plan, both exclusively offering the Growth option. > Regarding the exit load, a 0.25% charge is applicable if units are redeemed or switched within seven days from the date of allotment. There is no exit load if redemption or switching takes place after seven days. > Systematic transactions such as SIP, Flex SIP, STP, and Flex STP will be subject to the prevailing exit load on the registration date. > The fund also caters to those with short-term financial needs, providing a flexible option for lump sum investments.
Suitability
The fund is designed for conservative investors who prefer lower risk. "Investing in the WhiteOak Equity Savings Fund can be recommended for conservative investors in a volatile market as it has a hybrid structure involving equity taxation benefits. Most of the equity exposure is managed by arbitrage leading to lower risk than pure equity funds, making it relevant to more risk-averse investors," recommended Rajesh Minocha, a Certified Financial Planner and founder of Financial Radiance.
Equity savings scheme funds are mutual funds that allocate a minimum of 65% of their assets to equity shares of companies in various sectors and market capitalizations. Additionally, they may invest between 10-35% of their assets in debt instruments like government securities, corporate bonds, and money market instruments.
Equity Savings Funds, such as WhiteOak's latest offering, are noted for being less volatile compared to pure equity schemes. They invest a portion of their portfolio in unhedged equity while maintaining a large stake in stable assets like debt and arbitrage.
"WhiteOak Capital Equity Savings Fund (ESF) focuses on removing the psychological barrier (Greed & Fear) for its investors with an aim to generate superior ‘Risk Adjusted Return’. It offers a hassle-free and tax-efficient way of investing in various asset classes via a single mutual fund scheme," stated Ramesh Mantri, CIO of WhiteOak Capital Asset Management.
The fund is strategically structured to optimise tax benefits for investors in higher tax slabs. "The scheme allocates higher in equity when the equity market valuation is low and lower when the equity market valuation is high. Using in-house market valuation index, the funds bring discipline in investing and help in keeping emotional biases away," added Mantri. With its focus on risk-adjusted returns, the WhiteOak Capital Equity Savings Fund aims to provide a balanced and disciplined approach to investing, appealing to those seeking stable yet tax-efficient returns in a volatile market.
Peer comparison
HSBC Equity Savings Fund Fund Size: Rs 646 crs Return (p.a): +12.40%
Sundaram Equity Savings Fund Fund Size: Rs 1,067 Crs Return (p.a): +12.30%
UTI Equity Savings Fund Fund Size: Rs 650 Crs Return (p.a): + 11.66%
Kotak Equity Savings Fund Fund Size: Rs 8,178 Crs Return (p.a): + 11.35%
DSP Equity Savings Fund Fund Size: Rs 2,417 Crs Return (p.a): +11.30%
HDFC Equity Savings Fund Fund Size: Rs 5,584 Crs Return (p.a): +11.27%
Mahindra Manulife Equity Savings Fund Fund Size: Rs 564 Crs Return (p.a): +11.26%
Edelweiss Equity Savings Fund Fund Size: Rs 572 Crs Return (p.a): + 11.16%
Mirae Asset Equity Savings Fund Fund Size: Rs 1,371 Crs Return (p.a): +11.16%
Invesco India Equity Savings Fund Fund Size: Rs 402 Crs Return (p.a): +10.64%
Axis Equity Savings Fund Fund Size: Rs 968 Crs Return (p.a): +10.52%
SBI Equity Savings Fund Fund Size: Rs 5,705 Crs Return (p.a): +10.32%