WhiteOak Capital Mutual Fund has introduced a new fund offer (NFO) for the WhiteOak Capital Equity Savings Fund, an open-ended scheme that invests in equities, arbitrage opportunities, and debt instruments. The NFO will be available from February 25 to March 5, 2025.
The fund aims to achieve capital appreciation by allocating investments across equity and equity-related instruments, arbitrage strategies, and debt and money market securities. However, there is no guarantee that the scheme’s investment objective will be met. The fund’s performance will be measured against the Nifty Equity Savings TRI benchmark.
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Equity Savings Funds are relatively less volatile as compared to pure equity schemes as they invest only a portion of their portfolio in Unhedged Equity and usually, stable asset classes like Debt and Arbitrage put together consists large part of the portfolio. Since Equity Savings Funds are treated as equity-oriented funds for taxation purpose as per the Income Tax Act, investors who fall in higher tax brackets but seek tax-efficient returns may benefit from these funds. With their ability to offer moderate and tax-efficient returns with tolerable level of volatility, this Fund serves as a good alternative to debt-oriented mutual funds or traditional fixed income instruments.
“Investing is all about optimising outcomes by balancing upside capture with downside protection. While retail investors have been big participants in equity funds, in volatile times hybrid funds like our Equity Savings Fund are ideal for investors seeking stable returns over the medium term as it generates returns through combination of Equity, Arbitrage, Debt and REITs/InVITs predominantly. Investors in higher tax slabs may find the scheme appealing, as it is treated as an equity-oriented fund for taxation purposes. Gains after 1 year are taxed at a Long-Term Capital Gains (LTCG) rate of 12.5%^, applicable only if gains exceed ₹1.25 lakh in a financial year,” said Aashish Somaiyaa, CEO of WhiteOak Capital Asset Management Limited.
According to WhiteOak Capital’s internal research, over the last 5, 10, and 15 years, the Benchmark Nifty Equity Savings Index has generated CAGR of 9.9%, 8.6%, and 9.1% respectively.
“WhiteOak Capital Equity Savings Fund (ESF) focuses in removing the psychological barrier (Greed & Fear) for its investors with an aim to generate superior ‘Risk Adjusted Return’. It offers a Hassel-free and Tax-efficient way of investing in various asset classes via Single Mutual Fund Scheme. The Scheme allocates Higher in Equity when the Equity Market Valuation is Low and Lower when the Equity Market Valuation is High. Using In-House Market Valuation Index, the funds bring a discipline in investing and helps keeping emotional biases away,” said Ramesh Mantri, CIO of WhiteOak Capital Asset Management Limited.
