WhiteOak Capital Equity Savings Fund: A Smart Bet for Conservative Investors?
Feb 27, 2025
WhiteOak Mutual Fund has launched WhiteOak Capital Equity Savings Fund, it is an open-ended scheme investing in equity, arbitrage and debt.
Equity Savings Fund segment has become popular with investors seeking balanced exposure to market volatility. They seek to return more than debt funds while ensuring risks are below pure equity holdings.
With the prevailing market volatility and global uncertainties, investors are seeking investment products that yield stable returns with managed risk. Equity Savings Funds fit the bill perfectly by using arbitrage opportunities to hedge equity exposure, thus being a preferred option for moderate-risk investors.
[Read: 5 Top Performing Equity Mutual Funds Amid the Market Correction]
Against this backdrop, WhiteOak Capital has rolled out its Equity Savings Fund NFO with an objective to give investors a tax-efficient and low-risk investment plan.
Details of WhiteOak Capital Equity Savings Fund:
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Investment Objective |
The investment objective of the Scheme to provide capital appreciation by investing in Equity & equity related instruments, Arbitrage opportunities, and Debt & money market instruments. There is no assurance that the investment objective of the Scheme will be achieved. |
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Category |
Hybrid Fund |
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SIP/STP/SWP |
Available |
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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 |
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Plans |
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Options |
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Entry Load |
Not Applicable |
Exit Load |
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In respect of each purchase / switch-in of Units, an Exit Load of 0.25% is payable if Units are redeemed/ switched-out within 7 days from the date of allotment.
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No Exit Load is payable if Units are redeemed / switched-out after 7 days from the date of allotment
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Fund Manager |
- Mr Ramesh Mantri (Equity)
- Mr Dheeresh Pathak (Equity)
- Ms Trupti Agarwal (Equity)
- Mr Piyush Baranwal (Debt)
- Mr Bhavin Patadia (Arbitrage)
- Mr Ashish Agrawal (Arbitrage) |
Benchmark Index |
NIFTY Equity Savings TRI |
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Issue Opens: |
February 25, 2025 |
Issue Closes: |
March 05, 2025 |
(Source: Scheme Information Document)
What will be the investment strategy for WhiteOak Capital Equity Savings Fund?
WhiteOak Capital Equity Savings Fund shall endeavour to provide capital appreciation and income to the investors using arbitrage opportunities, investment in equity/equity related instruments and debt/money market instruments.
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Under its Equity component, the scheme would invest across market cap/sectors/industries providing the benefit of diversification. The aim of the equity component will be to build a portfolio, representing a cross section of companies diversified across major industries, economic sectors and market capitalization that offer an acceptable risk reward balance.
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Under its Debt component, the scheme would aim to generate income by investing in debt (including securitised debt), money market instruments. Fixed income allocation will be made based on the evaluation of macroeconomic factors, market dynamics, credit quality, liquidity, interest rates etc.
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For Arbitrage the Scheme may seek to generate income through arbitrage opportunities (including dividend arbitrage, buy back / open offer arbitrage, commodity arbitrage etc.) and adopt strategies depending on market conditions and regulatory compliance.
(Source: PPT - WhiteOak Capital Equity Savings Fund)
The scheme will use in-house proprietary valuation approach called OpcoFinco, as the framework is based on analysis of cash flows, it avoids several distortions that can potentially emerge while using accounting multiples. Depending on the suitability the traditional valuation approaches might be used for valuation.
The scheme may invest part of its portfolio in debt and money market instruments subject to permissible limits laid under SEBI (MF) Regulations and will be guided by credit quality, liquidity, interest rates outlook.
How will the scheme allocate its assets?
Under normal circumstances, WhiteOak Capital Equity Savings Fund will hold an allocation of 65% to 90% in Equity & Equity related Instruments, of which 25% to 80% will be in Hedged - arbitrage opportunities, 10% to 40% in Unhedged - Net long equity positions. Additionally, 10% to 35% in Debt Securities and Money Market Instruments and Government Securities, 0% to 10% in Exchange Traded Commodity Derivatives, and 0% to 10% in Units issued by REITS and InVITs.
Should investments in WhiteOak Capital Equity Savings Fund be considered?
WhiteOak Capital Equity Savings Fund is a hybrid mutual fund that balances equity, debt, and arbitrage exposure to generate steady returns with lower volatility.
One of the key advantages of an equity savings fund is its ability to cushion market downturns through debt and arbitrage strategies. If the fund is managed efficiently with a well-diversified portfolio, it can offer better risk-adjusted returns compared to pure equity funds, especially in volatile markets.
Another important aspect to consider is taxation, equity savings funds enjoy equity-like taxation. However, returns depend heavily on how well the fund manager balances the allocation between equity, debt, and arbitrage opportunities.
Moreover, as a relatively new fund house, WhiteOak Capital's track record in this category is still evolving, and investors should assess its performance against peers before making a decision.
As always, aligning the fund's risk-return profile with your financial goals is crucial for making an informed investment decision.