IGI Logo

WhiteOak Capital Mutual Fund today announced the launch of their new fund offer (NFO) - ‘WhiteOak Capital Multi Asset Allocation Fund’. The NFO will be open from May 3^rd to 10^th 2023. It is an open ended scheme investing in Equity & Equity Related Instruments, Debt & Money Market Securities and Gold/Silver related instruments.

Economic Cycles and Markets across the globe are very dynamic. Different asset classes tend to perform differently depending on where we are in the Economic Cycle, Global Scenarios, Geo-Political Events etc. These asset classes have varied degrees of correlation with each other. Investors can use these correlations in creating a portfolio to achieve reasonable returns with moderate volatility from their investment over long term. It is found that investing in any one asset class or discrete set of asset classes with allocations that are unmindful of their correlation levels provides results that are worse off than investing in a judicious mix of asset classes respecting their interplay and dynamically rebalancing them periodically.

Accordingly, the scheme invests in various asset classes, such as Equity, Debt, Gold, Foreign Equities , dynamically using Internal Proprietary Model to figure out the relative attractiveness of these asset classes. The scheme is likely to be a Hassle-Free and Tax-efficient^ way of investing in various asset classes via the Single Mutual Fund Scheme.  The Scheme is eligible for Long Term Capital Gain Tax with indexation benefit^ after the holding period of more than Three years. Scheme’s investment philosophy under normal circumstances is given below:

* 15% to 45% towards Domestic Equities (Net)

* 10% to 55% towards Fixed Income

* 10% to 40% towards Gold

* 0 to 10% towards Foreign Equities, out of the total net assets.

* Domestic Equity of more than 35% to 45%, including Arbitrage Position (Hedged + Unhedged). ^As per prevailing tax laws (w.e.f. 1st April 2023). Investors are requested to consult their tax consultant to understand the Individual nature of tax implications.

The Portfolio will be managed as per the stated Investment objective, investment strategy & asset allocation in the Scheme Information Document (SID) and is subject to the changes within provisions of SID of the Scheme. Asset Allocation as per SID: https://bit.ly/3Aczxqk

The scheme will be benchmarked against S&P BSE 500 TRI (40%) + CRISIL Composite Bond Index (40%) + Domestic prices of Gold (10%) + Domestic prices of Silver (10%).

Mr. Aashish Somaiyaa, CEO, WhiteOak Capital Mutual Fund said, “WhiteOak Capital AMC has always aimed at providing best-in-class investment products to retail investors. In line with this objective, we are launching our Multi Asset Allocation Fund which aims to generate superior “Risk Adjusted Returns” for conservative investors who appreciate the nuances and benefits of dynamic asset allocation. Our fund managers will perform not only security selection but also multi-asset portfolio construction in creating a portfolio to achieve reasonable returns with moderate volatility over the long term.”

Mr. Prateek Pant, CBO, WhiteOak Capital Mutual Fund said, “The WhiteOak Capital Multi Asset Allocation Fund will invest across asset classes which include Domestic & Foreign Equity, Debt, Gold. Each asset class performs differently during various market cycles. A judicious mix of these asset classes helps in reducing portfolio volatility and generating reasonable returns over longer time periods.”

“Generally, equities are expected to do well during periods of  an economic recovery. On the other-hand bonds tend to do well during recession and falling interest rates scenarios. While no investment is guaranteed to be recession-proof, some asset classes tend to perform better than others during downturns. During periods of inflationary pressures, commodities like gold, metals, oil, etc. usually see an upswing in prices. Our team at WhiteOak Capital has developed an internal proprietary model to assess the relative attractiveness of these asset classes and would seek to allocate and rebalance dynamically with an aim to deliver superior “Risk Adjusted Returns” to investors, Mr. Pant added.

In order to understand market behaviour one can, look at returns delivered by various asset classes in the just concluded CY22, Gold was the top performer clocking gains of 13.9% followed by Indian equities at 5.7%. The other asset classes, like liquid funds gave 5.1% returns, while real estate returned 2.8%, Debt 2.5%. While foreign equities delivered negative returns in INR terms amongst key markets such as US equities (S&P 500) -9.1% ,MSCI DM -9.1%, MSCI EM -11.3% and the Nasdaq -25.1%.

Above views are of the author and not of the website kindly read disclaimer