WhiteOak Capital Mutual Fund has recently announced the launch of a new fund offer (NFO) in the ELSS funds category called WhiteOak Capital Tax Saver Fund. The new fund offer was launched on August 16 and will remain open till September 30.
Before we proceed, let us first deconstruct the concept of a new fund offer and equity-linked savings scheme (ELSS)
New Fund Offer
A New Fund Offer (NFO) is the process through which an asset management company (AMC) creates a new fund on a first-subscription basis to facilitate the purchase of securities.
The fund house collects funds from the general public through an NFO in order to buy securities such as equity shares, bonds, and other financial instruments on the market. As a newcomer to the market, NFO is less expensive than the current funds.
Equity-Linked Savings Scheme
ELSS funds are equity funds that let you invest for long-term goals while saving tax. Investments in these funds may qualify for tax deductions under Section 80C. They provide investors with tax-efficient profits with a short 3-year lock-in period as well as tax-free dividends if they choose the dividend options.
Fund Objective
The fund will predominantly invest in equity and equity-related instruments and the scheme objective of the fund is to generate capital appreciation or income from such investments. However, the fund does not guarantee to achieve the objective or generate returns from the fund, according to the fund house.
Fund Overview
The WhiteOak Capital Tax Saver Fund qualifies for tax deduction under Section 80C of the Income Tax Act, 1961, and has a lock-in period of three years with wealth creation opportunities in the long run. The fund will be invested in companies across market cap and sectors. The fund will be benchmarked against S&P BSE 500 TRI.
Ramesh Mantri (Equity), Piyush Baranwal (Debt), and Trupti Agrawal (Overseas Investments) are the fund managers for WhiteOak Capital Tax Saver Fund.
Top five ELSS mutual funds that demonstrated the best performance in the past three years
| Name of the schemes | 3 year trailing returns (% |
| Quant Tax Plan(G) | 40.06 |
| SBI LT Advantage Fund(G) | 36.1 |
| Bank of India Tax Advantage Fund(G) | 26.02 |
| IDFC Tax Advt (ELSS) Fund(G) | 24.7 |
| Canara Rob Equity Tax Saver Fund(G) | 23.61 |
(Source: fundsindia, as of 26 August)
During the NFO period the minimum application amount would be ₹500, and in multiples of ₹500 thereafter. At the same time, the minimum redemption amount is ₹500 and in multiples of ₹1 or account balance, whichever is lower.
