WhiteOak Mutual Fund announced the launch of the WhiteOak Multi Cap Fund, an open-ended equity scheme investing across large-cap, mid-cap, and small-cap stocks.
The scheme opened for public subscription on August 31, 2023, and will close on September 14, 2023. The scheme re-opens for continuous sale and repurchase within five business days from the date of allotment.
What kind of mutual fund scheme is this?
This is an open-ended equity scheme investing across large-cap, mid-cap, and small-cap stocks. This product is suitable for investors seeking
- Long-term capital appreciation
- Investment in equity and equity-related instruments across large-cap, mid-cap and small-cap stocks.
Speaking on the new fund offer, Aashish Somaiyaa, CEO, WhiteOak Capital Asset Management said, “MultiCap Funds are an ideal component for the long-term allocation in any equity investors’ portfolio. With our deep bench of seasoned investment professionals, we at WhiteOak Capital are well-positioned to take advantage of the broad mandate of investing across small, mid, and large-cap names backed by bottom-up research and balanced portfolio construction aimed at delivering consistent performance. We aim to avoid being part of the rampant “winner rotation” phenomenon that plays out in our markets with the best-performing fund and fund manager changing every 18-24 months”.
What is the main objective of investing in this fund?
The fund aims to generate long-term capital appreciation through diversified investments in equity and equity-related instruments across large-cap, mid-cap, and small-cap stocks. However, there can be no assurance or guarantee that the investment objective of the scheme will be achieved.
Ramesh Mantri, CIO, WhiteOak Capital Mutual Fund added, “At WhiteOak Capital we believe that outsized returns can be earned over time by investing in great businesses at attractive valuations. So, instead of taking skewed macro bets on sectors or on particular style, our focus is on meticulous stock selection, driven by thorough research and analysis. We do believe that no particular style performs consistently every year and likewise, sector and market cap performance keeps rotating year on year. Furthermore, there may be a prolonged cycle of out-performance and under-performance. Hence, a factor diversified balanced portfolio like WhiteOak Capital MultiCap Fund is designed with the intent to deliver consistency of performance in an uncertain global macro and market environment.
How may one invest in this scheme?
Investors can invest under the scheme with a minimum investment of ₹500 per plan/option and in multiples of Re 1. There is no upper limit for investment.
Under normal circumstances, the asset allocation of the scheme will be as follows:
| Instruments | Indicative allocations (% of total assets) | Risk Profile | |
Minimum | Maximum | ||
Equity and Equity-related Instruments of Large, Mid, and, Small cap companies of which Large Cap Companies Mid Cap Companies Small Cap Companies | 75
| 100 |
Very High
|
25 | 50 | ||
25 | 50 | ||
25 | 50 | ||
Debt securities (including securitized debt & debt derivatives) and money market instruments | 0 | 25 | Low to Medium |
Units issued by REITs and InvITs | 0 | 10 | Very High |
Are there similar mutual funds in the market?
To date, many asset management companies (AMCs) have launched such multi-cap funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. Some of these include:
Name of the fund | Five-year returns (in %) |
Nippon India Multicap Fund | 17.93 |
ICICI Prudential Multicap Fund | 14.98 |
Mahindra Manulife Multi Cap Fund | 19.39 |
Invesco India Multicap Fund | 14.06 |
Baroda BNP Paribas Multi Cap Fund | 15.97 |
Sundaram Multi Cap Fund | 14.50 |
Source: MoneyControl | |
How will the scheme benchmark its performance?
The performance of the scheme will be benchmarked against the NIFTY 500 Multicap 50:25:25 Index TRI.
It has been selected as the benchmark as it is the most appropriate index among the options provided by AMFI. Since the fund is a multicap fund and has no bias towards sector or market cap allocation, the NIFTY 500 Multicap 50:25:25 TRI index is an appropriate benchmark.
Are there any entry or exit loads to this scheme?
This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” would be charged as per the following:
- In respect of each purchase/switch-in of units, an Exit Load of 1.00% is payable if units are redeemed/switched out within one month from the date of allotment.
- No Exit Load is payable if units are redeemed/switched out after one month from the date of allotment.
Who will manage this scheme?
Ramesh Mantri, Trupti Agrawal, and Piyush Baranwal will be looking after the investments in this scheme.
Does the fund contain any inherent risk?
The scheme involves “Very High Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.
