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WhiteOak Capital Mutual Fund today announced the launch of their new fund offer (NFO) - ‘WhiteOak Capital Balanced Hybrid Fund’. The NFO will be open from 5th October 2023 to 19th October 2023. It is an open-ended balanced scheme investing in equity and debt instruments.

The investment objective of the scheme is to provide long term capital appreciation and generate income by investing in a balanced portfolio of equity & equity-related instruments and debt & money market securities. The scheme is benchmarked against CRISIL Hybrid 50+50 Moderate Index.

WhiteOak Capital Balanced Hybrid Fund is a simple yet effective way to participate in both Equity and Debt asset classes, wherein equity provides higher wealth creation opportunities in the long term and debt provides stability to the portfolio. The scheme aims to achieve not only reasonable returns over time, but to reduce the intermittent volatility associated with pure equity allocation. The Fund provides hassle-free and tax-efficient way of investing in Debt and Equity via Single Mutual Fund Scheme and is also eligible for Long Term Capital Gain Tax with Indexation Benefit, with holding period of more than three years.

Speaking on the new fund offer, Mr. Aashish Somaiyaa, CEO, WhiteOak Capital Asset Management Limited said, “Originally, Balanced Funds were supposed to be just “Balanced”. But because of tax considerations, they took anywhere ranging from 65%-80% exposure in equity, thereby going “Off Balance”. So much so that they had to be renamed as “Aggressive Hybrid Funds”. But taxation should never be your prime consideration in determining what risk you take to drive returns. In any case, the current tax regime is not adverse if a fund is managed as a balanced hybrid fund by holding three years, rather than taking high equity to reduce tax impact; thus, the “Balance” can be restored. This scheme will keep rebalancing allocation to 50:50 at periodic intervals to provide better balance vis-à-vis aggressive hybrid funds on a risk-adjusted basis.”

Mr. Prateek Pant, CBO, WhiteOak Capital Asset Management Limited said, “Investors often make mistakes when they are exposed to extremes of market conditions or asset classes. They end up generating sub-optimal returns from investments because of huge intermittent volatility. One of the simple but effective strategies to follow is the ‘Balanced Approach’ of having Growth Asset (Equity) and Stability (Debt) in the portfolio. With WhiteOak Capital Balanced Hybrid Fund we intend to follow a simple approach to Portfolio Asset Allocation that can help avoid exposing the portfolio to extreme volatility and, at the same time, can earn reasonable returns over time.”

The fund allocation includes investing 40-60% in Equity & Equity Related Instruments (including foreign securities) and 40-60% in Debt Securities (including securitized debt) & money market instruments, cash, and cash equivalents and /or units of domestic liquid mutual fund schemes across various sectors. Under normal circumstances, the asset allocation philosophy of the scheme shall rebalance back to strategic asset allocation of 50%, whenever external asset allocation limits (i.e. 40% or 60%) are breached due to market movement. However, final portfolio can have higher or lower allocation depending on prevailing market scenario.

The fund will be managed by Mr. Ramesh Mantri (Equity), Ms. Trupti Agrawal (Assistant Fund Manager), Mr. Piyush Baranwal (Debt), Mr. Shariq Merchant (Overseas Investments).

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