WhiteOak Capital Mutual Fund has introduced the ‘WhiteOak Capital Balanced Hybrid Fund,’ an open-ended balanced scheme designed to invest in both equity and debt instruments. The New Fund Offer (NFO) commenced on October 5, 2023, and will remain open for subscription until October 19, 2023.
Investment Objective
The fund aims to achieve long-term capital appreciation and generate income by maintaining a balanced portfolio of equity, equity-related instruments, debt, and money market securities. It is benchmarked against the CRISIL Hybrid 50+50 Moderate Index.
Balancing Equity and Debt
WhiteOak Capital Balanced Hybrid Fund offers investors a straightforward way to participate in both equity and debt asset classes. While equity provides long-term wealth creation opportunities, debt provides stability to the portfolio. This approach intends to provide reasonable returns while minimizing the intermittent volatility associated with pure equity investments.
Tax Benefits
Investments in this scheme are eligible for Long Term Capital Gain Tax with Indexation Benefit, provided the holding period exceeds three years.
Expert Insights
Aashish Somaiyaa, CEO of WhiteOak Capital Asset Management Limited, emphasized the importance of maintaining a balanced approach in investment. He noted that taxation considerations should not be the primary driver for taking on risk, and the fund’s rebalancing strategy aims to provide a better risk-adjusted balance compared to aggressive hybrid funds.
Asset Allocation
The fund’s asset allocation strategy involves investing 40-60% in equity and 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. The portfolio will rebalance back to a strategic asset allocation of 50% whenever external asset allocation limits are breached due to market movements.
Disclaimer
Investors are advised that mutual fund investments carry market risks, and they should consult their financial advisor before making any investment decisions. The information provided is based on a press release from WhiteOak Capital Asset Management Ltd.
