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WhiteOak Capital Mutual Fund today announced the launch of their new fund offer (NFO) - ‘WhiteOak Capital Arbitrage Fund’, an open ended scheme investing in arbitrage opportunities. The NFO opens on 28th August 2024 and closes on 3rd September 2024.

The fund aims to generate returns primarily by investing in arbitrage opportunities within the equity markets' cash and derivatives segments. The investment objective of the Scheme is to seek to generate returns by predominantly investing in arbitrage opportunities in the cash and derivatives segments of the equity markets and by investing balance in debt and money market instruments. There is no assurance

that the investment objective of the Scheme will be achieved. The scheme is benchmarked against Nifty 50 Arbitrage Index.

The fund will follow two asset allocation strategies. Under normal circumstances, it will allocate 65%-100% in Equity & Equity related Instruments and Equity Derivatives, 0% - 35% in Debt Securities and Money Market Instruments including the margin money deployed in derivative transactions and 0 – 10% in Units issued by REITs and InvITs: 0% - 10%.

Under Defensive circumstances the allocation will be 0%-65% in Equity & Equity related Instruments and Equity Derivatives, 35% - 100% in Debt Securities and Money Market Instruments including the margin money deployed in derivative transactions and 0% - 10% in Units issued by REITs and InvITs.

Defensive circumstances are when the arbitrage opportunities in the marketplace are negligible in view of the fund manager, or returns are lower than alternative investment opportunities as per allocation pattern.

Speaking on the new fund offer, Mr. Aashish Somaiyaa, CEO of WhiteOak Capital Asset Management Limited said, “Since the launch of our first mutual fund scheme 2 years back we are blessed to have wide acceptance across investor base and channel partners across geographies. We find that to engage and serve them better we should offer a more complete product range where basic funds like arbitrage are a must because it’s a preferred vehicle to park medium term surpluses”.

Mr. Ramesh Mantri, CIO of WhiteOak Capital Asset Management Limited said, "The WhiteOak Capital Arbitrage Fund seeks to generate returns by predominantly investing in arbitrage opportunities in the cash and derivatives segments of the equity markets. The Scheme is suitable for investors seeking stable and tax-efficient^ return over the short to medium term, as it generates returns through market-neutral trades rather than depending on market direction.”

as per prevailing Income Tax Act

The fund will be managed by Mr. Ramesh Mantri (Equity), Mr. Ashish Agrawal (Equity) & Mr. Piyush Baranwal (Debt). The scheme is suitable for investors who are seeking Short to Medium Term return generation and Investment predominantly in arbitrage opportunities in cash and derivative segment of equity market.

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