WhiteOak Capital Mutual Fund has launched a new open-ended equity scheme called WhiteOak Capital Large & Mid Cap Fund. The NFO aims to generate long-term capital appreciation by investing in a diversified portfolio of equity and equity-related instruments of large and mid-cap companies. The scheme has an entry load of nil and an exit load of 1% if units are redeemed or switched out within one month from the date of allotment. The minimum subscription amount is Rs. 500.
The primary objective of the scheme is to generate long-term capital appreciation by investing in and managing a diversified portfolio of equity and equity-related instruments of large and mid-cap companies.
The NFO considers S&P BSE 250 Large Mid-cap TRI as a benchmark index and aims to beat the same. The fund category of the scheme is large & mid-cap fund.
Normally, the asset allocation pattern will be:
| Instrument | Indicative Allocation (% of net assets) | Risk Profile |
| Equity and Equity Related Instruments of Large and Mid-Cap Companies of which: | 70 to 100 | Very High |
| Large Cap Companies | 35 to 65 | Very High |
| Mid Cap Companies | 35 to 65 | Very High |
| Equity and Equity Related Instruments other than above | 0 to 30 | Very High |
| Debt Securities and Money Market Instruments | 0 to 30 | Low to Medium |
| Units issued by REITs and InvITs | 0 to 10 | Very High |
The fund may employ equity and debt derivatives to hedge against market risks or to generate additional income. However, the maximum exposure to derivatives is capped at 50% of the net assets of the equity and debt components, respectively. The fund seeks to invest up to US $ 50 million in foreign securities and USD 20 million in overseas ETFs. This global reach provides investors with exposure to potential growth opportunities in international markets.
The NFO scheme uses a bottom-up stock selection approach and focuses on maintaining a reasonably diversified portfolio. The fund invests in businesses based on stock selection and valuation, rather than focusing on macro events. The fund believes in investing in good businesses at attractive valuations.
The fund managers are focussing on 3 attributes for investment. The first attribute, superior returns on incremental capital, is important because it shows that the business can efficiently use its resources to generate profits. The second attribute, scalable long-term opportunity, is important because it means that the business has the potential to grow significantly over time. The third attribute, strong execution and governance, is important because it shows that the management team can execute the business plan and create value for shareholders.
For this NFO scheme, the AMC is using their proprietary model of OpcoFinco Valuation Framework to analyse and value businesses. The framework is based on the principle of separating a business into two components: the operating company (Opco) and the financial holding company (Finco). The Opco is responsible for generating cash flow from the core business operations, while the Finco is responsible for managing the company’s capital structure and financial risks.
Ramesh Mantri (for equity securities) is 43 years old and has a qualified MBA, CFA, and CA with 20 years of experience in the financial market.
Trupti Agrawal (Assistant Fund Manager) is 39 years old and has a qualified B.Com, CA with collectively around 15 years of experience.
Piyush Baranwal (For Debt Securities) is 39 years old and a qualified Bachelor of Engineering, PGDBM, cleared all 3 levels of CFA with over 14 years of experience in portfolio management and trading in fixed-income securities.
Shariq Merchant (for overseas Investments) is 35 years old and qualified CA, Passed all 3 levels of the CFA program with over 11 years’ experience in the financial market.
| Historic Returns – large & mid cap fund | ||||||
| Scheme Name | AuM (Rs Cr) | 1Y | 2Y | 3Y | 5Y | 10Y |
| Mirae Asset Emerging Bluechip Fund – Direct Plan – Growth | 28,103.78 | 21% | 12% | 22% | 21% | 25% |
| Canara Robeco Emerging Equities – Direct Plan – Growth | 17,563.09 | 17% | 11% | 20% | 19% | 23% |
| SBI Large & Midcap Fund – Direct Plan – Growth | 15,648.67 | 17% | 15% | 24% | 19% | 18% |
| Kotak Equity Opportunities Fund – Direct Plan – Growth | 15,260.53 | 23% | 18% | 23% | 20% | 19% |
| HDFC Large and Mid-Cap Fund – Direct Plan – Growth | 11,883.08 | 29% | 20% | 29% | 21% | 15% |
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.
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