Should I Invest in the WhiteOak Capital Balanced Hybrid Fund? Know Details

In the world of investments, making informed choices is essential to secure your financial future. One such investment opportunity that has recently caught the attention of investors is the WhiteOak Capital Balanced Hybrid Fund. In this article, we will delve into the details of this fund to help you decide whether it’s a suitable option for your investment portfolio.

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Understanding the WhiteOak Capital Balanced Hybrid Fund

The WhiteOak Capital Balanced Hybrid Fund is an offering from WhiteOak Capital Mutual Fund, and it officially opened for subscription on October 5, 2023. The new fund offer (NFO) period will run until October 19, 2023. This fund is categorized as an open-ended balanced scheme that strategically invests in both equity and debt instruments.

What are the primary investment objectives of the WhiteOak Capital Balanced Hybrid Fund?

The primary objective of this fund is twofold: to provide long-term capital appreciation and to generate income for its investors. This dual approach aims to strike a balance between wealth creation and stability in your investment portfolio.

Can you explain the tax benefits associated with investing in this fund?

One notable benefit of investing in the WhiteOak Capital Balanced Hybrid Fund is that it qualifies for long-term capital gain tax with indexation benefit for holdings exceeding three years. This tax advantage can be an attractive feature for investors with a long-term investment horizon.

Portfolio Strategy

A distinguishing feature of this fund is its commitment to maintaining a balanced asset allocation. While some balanced funds tend to have a higher equity exposure, this fund aims to keep a 50:50 allocation between equity and debt instruments. It accomplishes this through periodic rebalancing to ensure a more risk-adjusted approach compared to aggressive hybrid funds.

What is the flexibility in asset allocation offered by the WhiteOak Capital Balanced Hybrid Fund?

The WhiteOak Capital Balanced Hybrid Fund adopts a flexible approach to asset allocation. It has the freedom to invest between 40% and 60% in equity and equity-related instruments, including foreign securities, and another 40% to 60% in debt securities. This allocation can include securitized debt, money market instruments, cash, cash equivalents, and units of domestic liquid mutual fund schemes across various sectors.

Who are the fund managers responsible for managing this fund?

The success of any mutual fund largely depends on its fund managers. In this case, the fund will be managed by a team of seasoned professionals. Ramesh Mantri will oversee equity investments, Trupti Agrawal will serve as the Assistant Fund Manager, Piyush Baranwal will handle debt investments, and Shariq Merchant will manage overseas investments.

What are the liquidity and redemption options for investors in this fund?

Investors in the WhiteOak Capital Balanced Hybrid Fund have the flexibility to subscribe to or redeem their units at Net Asset Value (NAV) related prices on every business day, with redemption commencing within 5 business days from the date of allotment post the NFO period. The fund follows strict timelines for redemption to ensure investor satisfaction.

Are there any plan options available, and what are the associated loads?

The scheme offers two plans: the direct plan and the regular plan. The direct plan is designed for investors who directly purchase units with the fund, while the regular plan is available through distributors. Both plans offer a growth option, although there is currently no Income Distribution cum Capital Withdrawal Option.

Investors should note that there is no entry load for this fund. However, an exit load of 1.00% is applicable if units are redeemed or switched out within 1 month from the date of allotment. There is no exit load if units are redeemed or switched out after 1 month from the date of allotment. Exit load for systematic transactions varies depending on the type of transaction.

What is the minimum application amount during the NFO period, and are there SIP options available?

During the New Fund Offer (NFO) period, the minimum application amount is set at Rs 500, with subsequent investments allowed in multiples of Re 1. For those interested in systematic investment, the fund offers weekly, fortnightly, monthly, and quarterly SIP options, each with varying minimum installments.

What are the fees and expenses associated with this fund?

The WhiteOak Capital Balanced Hybrid Fund has outlined its expense structure, covering NFO expenses and annual scheme recurring expenses for operating the scheme. It’s important for investors to consider these expenses when evaluating the fund’s potential returns.

Should I Invest in WhiteOak Capital Balance Hybrid Fund?

While the WhiteOak Capital Balanced Hybrid Fund presents an enticing opportunity for investors seeking a balanced approach, it’s crucial to assess whether it aligns with your financial goals, risk tolerance, and investment horizon. Consulting with a financial advisor is highly recommended before making any investment decisions.

In conclusion, the Whiteoak Capital Balanced Hybrid Fund offers a unique blend of equity and debt investments with the aim of providing long-term capital appreciation and income generation. However, like all investments, it’s essential to conduct thorough due diligence and seek professional guidance to determine if this fund fits your investment objectives. Make sure to weigh the benefits, risks, and costs before making an informed investment choice.