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WhiteOak Capital Mutual Fund has launched India’s first pure balanced fund after SEBI recategorized mutual fund schemes.
While the category has been around for quite some time now, there were no new funds in this category owing to ‘lack’ of tax arbitrage.
The fund, WhiteOak Capital Balanced Hybrid Fund is an open-ended balanced scheme that will invest equally in both equity and debt. Its NFO opens on October 5 and closes on October 19.
In a press release, Aashish Somaiyaa, CEO, WhiteOak Capital MF said, “Taxation should never be your prime consideration in determining what risk you take to drive returns. In any case, the current tax regime is not adverse if a fund is managed as a balanced hybrid fund by holding three years, rather than taking high equity to reduce tax impact; thus, the “Balance” can be restored. This scheme will keep rebalancing allocation to 50:50 at periodic intervals to provide better balance vis-à-vis aggressive hybrid funds on a risk-adjusted basis.”
Prateek Pant, CBO, WhiteOak Capital Asset Management Limited said, “One of the simple but effective strategies to follow is the ‘balanced approach’ of having growth asset (equity) and stability (debt) in the portfolio. The fund will follow a simple approach to portfolio asset allocation that can help avoid exposing the portfolio to extreme volatility and, at the same time, can earn reasonable returns over time.”
Ramesh Mantri (Equity), Trupti Agrawal (Equity), Piyush Baranwal (Debt) and Shariq Merchant (Overseas Investments) are the fund managers of the scheme.
