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Business News/ Money / Personal Finance/  NFO Alert: From risk to objectives, all you need to know about WhiteOak Capital Balanced Hybrid Fund
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NFO Alert: From risk to objectives, all you need to know about WhiteOak Capital Balanced Hybrid Fund

WhiteOak Capital Mutual Fund announced the launch of the WhiteOak Capital Balanced Hybrid Fund. The scheme opens for public subscription on October 05, 2023, and will close on October 19, 2023.

WhiteOak Capital Mutual Fund launches WhiteOak Capital Balanced Hybrid Fund as a part of its new fund offers.Premium
WhiteOak Capital Mutual Fund launches WhiteOak Capital Balanced Hybrid Fund as a part of its new fund offers.

WhiteOak Capital Mutual Fund announced the launch of the WhiteOak Capital Balanced Hybrid Fund, an open-ended balanced scheme investing in equity and debt instruments. This product is suitable for investors seeking:

  • Capital appreciation and income generation over the medium and long term.
  • Investment in equity & equity-related instruments and debt & money market securities.

The scheme opens for public subscription on October 05, 2023, and will close on October 19, 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 balanced hybrid fund scheme investing in equity and debt instruments.

What is the main objective of investing in this fund?

The investment objective of the scheme is to provide long-term capital appreciation and generate income by investing in a balanced portfolio of equity & equity-related instruments and debt & money market securities. However, there can be no assurance or guarantee that the investment objective of the scheme will be achieved.

How may one invest in this scheme?

Investors can invest under the scheme with a minimum investment of Rs 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 (including foreign securities)

40%

60%

Medium to High

Debt Securities (including securitized debt) & Money market instruments, cash, and cash equivalents and/or units of domestic liquid mutual fund schemes.

40%

60%

Low to Medium

Are there similar mutual funds in the market?

To date, many mutual fund houses have launched many such similar funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:

Mutual Fund House

Name of the fund

Invesco Mutual Fund

Invesco India Balanced Advantage Fund

HDFC Mutual Fund

HDFC Balanced Advantage Fund

Bank of India Mutual Fund

Bank of India Balanced Advantage Fund

Axis Mutual Fund

Axis Balanced Advantage Fund

LIC Mutual Fund

LIC MF Balanced Advantage Fund

PGIM India Mutual Fund

PGIM India Balanced Advantage Fund

Edelweiss Mutual Fund

Edelweiss Balanced Advantage Fund

Source: MoneyControl

How will the scheme benchmark its performance?

The performance of the scheme is benchmarked against the CRISIL Hybrid 50+50 Moderate Index. The composition of this index is in line with the investment objective of the scheme and hence it is the most suited benchmark for comparing the performance of the scheme.

The index seeks to capture returns on a balanced portfolio which includes both equity and debt. The index is derived from sub-indices like S&P BSE 200 (TR) (50%) & CRISIL Composite Bond Fund Index (50%).’

CRISIL Hybrid 50+50 Moderate Index is currently selected as the First-tier Benchmark from the list of benchmarks circulated by AMFI to be used by AMCs as a First Tier Benchmark, pursuant to Para 1.9 of SEBI Master Circular on Mutual Funds dated May 19, 2023, on ‘Guiding Principles for bringing uniformity in Benchmarks of Mutual Fund Schemes’.

The Trustee/AMC reserves the right to change the benchmark for the evaluation of the performance of the Scheme from time to time, keeping in mind the investment objective of the Scheme and the appropriateness of the benchmark, after obtaining relevant approval from SEBI.

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 calculated as under:

- In respect to 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 and Trupti Agrawal will be looking after the “Equity" aspect of the fund, Piyush Baranwal will be looking after the “Securities" aspect of the fund while Shariq Merchant will be looking after overseas investments.

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. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.

 

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Published: 05 Oct 2023, 08:34 AM IST
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