Invest in Stability: WhiteOak Capital's New Quality Equity Fund is Here

Jan 20, 2025

WhiteOak Capital Mutual Fund has launched WhiteOak Capital Quality Equity Fund, it is an open-ended equity scheme following quality factor theme.

The quality factor theme in investing has garnered increasing attention in recent years, driven by the growing preference for companies with strong fundamentals, steady earnings growth, and robust financial health. Quality companies are typically less volatile during market fluctuations, making this investment approach particularly attractive to risk-averse investors looking for stability and long-term capital appreciation.

[Read: Best Mutual Funds to Invest in 2025]

With this backdrop, the launch of the WhiteOak Capital Quality Equity Fund NFO presents an exciting opportunity to invest in a strategy designed to target high-quality companies and deliver long-term value.

Details of WhiteOak Capital Quality Equity Fund:

Investment Objective The objective of the Scheme is to provide long term capital appreciation by constructing a diversified investment portfolio based on the quality factor theme to provide investors with exposure to companies having strong fundamentals and sustainable competitive advantages, i.e., companies which exhibit long term stability as they may lead to more predictable returns, less volatility, strong management and sustainable growth.
There is no assurance that the investment objective of the Scheme will be achieved.
Category Thematic Fund
SIP/STP/SWP Available
Min. Investment (Index Fund) Rs 500/- and in multiples of Re 1 thereafter. Additional Purchase Rs 500/- and in multiples of Re 1 thereafter. Face Value Rs 10/- per unit
Plans
  • Direct
  • Regular
Options
  • Growth
  • Income Distribution cum capital withdrawal (IDCW)
Entry Load Not Applicable Exit Load
  • In respect of each purchase / switch-in of Units, an Exit Load of 1.00% is payable if Units are redeemed/ switched-out within 1 month from the date of allotment.
  • No Exit Load is payable if Units are redeemed / switched-out after 1 month from the date of allotment
Fund Manager - Mr Ramesh Mantri
- Ms Trupti Agarwal
- Mr Dheeresh Pathak
- Mr Piyush Baranwal (For Debt Securities)
Benchmark Index BSE Quality TRI
Issue Opens: January 08, 2025 Issue Closes: January 22, 2025
(Source: Scheme Information Document)

What will be the investment strategy for WhiteOak Capital Quality Equity Fund?

The scheme will endeavour to achieve long term capital appreciation by constructing a diversified investment portfolio based on the quality factor to provide investors with exposure to companies having strong fundamentals and sustainable competitive advantages, i.e., companies which exhibit long term stability as they may lead to more predictable returns, less volatility, strong management and sustainable growth.

The scheme may utilise an internal proprietary model called OpcoFinco Framework to create a list of stocks which qualifies for Quality Factor theme. This model may provide broad guidance regarding the tilt of a particular stock towards Quality Factor. The internal proprietary model may use various parameters like return on equity (ROE), return on capital employed (ROCE), financial leverage (Debt/Equity Ratio), Free Cash Flow (FCF), ability of the business to generate superior returns on incremental capital and, corporate governance etc.

This internal proprietary model may go through periodic revision (as and when required), resulting in addition or deletion of parameters and the weightages assigned to them. Given the dynamic nature of the market, while the fund manager may utilise this model as a broad indicator; the fund manager may use his/her own discretion and judgement while determining the final allocation and weight to a particular stock as may be appropriate to pursue the investment objective of the fund.

How will the scheme allocate its assets?

Under normal circumstances, WhiteOak Capital Quality Equity Fund will hold an allocation of 80% to 100% in Equity & Equity related Instruments of companies following Quality Factor theme, 0% to 20% in Equity & Equity related Instruments of companies other than above, 0% to 20% in Debt and Money market instruments and 0% to 10% in Units issued by REITs and INVITs.

Should investments in WhiteOak Capital Quality Equity Fund be considered?

WhiteOak Capital Quality Equity Fund, a focused large-cap mutual fund, has generated significant interest among investors due to its consistent performance and its strategy of investing in high-quality businesses. This fund primarily targets companies with strong business fundamentals, robust financials, and the potential for long-term growth.

The strategy is to build a portfolio focused on businesses with a competitive advantage in their respective sectors, which could provide a defensive edge in volatile market conditions. For investors looking for stability and growth over a longer time horizon, the fund appears to be a suitable option, especially if they are aiming for capital appreciation through quality stocks.

On the flip side, market conditions should also be considered before making an investment. While the fund's strategy is robust, there could be periods of underperformance, especially in highly volatile or bearish market conditions. Furthermore, investors should assess their risk tolerance and financial goals to ensure that this fund aligns with their portfolio objectives.

If an investor is looking for a mix of stability and moderate growth with exposure to high-quality large-cap stocks, WhiteOak Capital Quality Equity Fund could be a strong contender for their investment strategy.