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WhiteOak Capital Mutual Fund today announced the launch of the new fund offer (NFO) – WhiteOak Capital Quality Equity Fund, an open ended equity scheme following Quality Factor theme. The NFO opens on 8^th January and closes on 22^nd January 2025.

WhiteOak Capital Quality Equity Fund is India’s first actively managed quality factor theme Fund that primarily focuses on companies with strong fundamentals, signalling their ability to generate reasonable earnings and withstand economic stress.

Historically, Nifty 200 Quality 30 TRI has delivered more than 10% return, 100% of the times for an investment horizon of 10 years. The growth rate for Nifty 200 Quality 30 TRI since April’05 to December’24 has been 18.6% CAGR, 16.7% CAGR for Nifty200 Value 30 TRI and 15% CAGR for Nifty 500 TRI (Broader Market) (Index performance does not signify scheme performance). Furthermore, over time, it has been observed that companies within the quality factor theme are financially sound and exhibit greater resilience, particularly during periods of market uncertainty (Past performance may or may not be sustained in future and is not a guarantee of any future returns). 

Speaking on the fund launch, Aashish Somaiyaa, CEO of WhiteOak Capital Asset Management Limited, said, “It has been observed that companies with high quality characteristics like strong management, high governance standards, ROIC over cost of capital and strong secular free cash flow profiles exhibit greater resilience and outperformance over the long term; more so during periods of economic and market uncertainty. In the last 3 years quality businesses which may have shown good earnings profile have still underperformed because the market has been in favor of value factor theme and favoring cyclical businesses driven by macros like commodity prices, geopolitics, government policy, interest rates etc. Markets are relative value seeking and mean reverting, we believe it is time to shift to quality in 2025. And not to forget, on a lighter note; money is made where the memes are.”

Ramesh Mantri, CIO of WhiteOak Capital Asset Management Limited said, “At WhiteOak, we believe in investing in companies with strong fundamentals at attractive valuations to drive long-term returns. The WhiteOak Capital Quality Equity Fund covers large universe of heterogeneous businesses across sectors and market cap with the aim to construct a diversified portfolio of predominantly quality stocks.”

The fund portfolio allocation will include 80%–100% in equity & equity related instruments of companies following Quality Factor theme, 0% - 20% in equity & equity related instruments of other companies, 0% - 20% in debt securities and money market instruments and 0% - 10% in units issued by REITs and InvITs.

The fund will be managed by Ramesh Mantri (Equity), Trupti Agarwal (Assistant Fund Manager, Equity), Dheeresh Pathak (Assistant Fund Manager, Equity), and Piyush Baranwal (Debt).

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