​NFO Alert: Should You Invest in WhiteOak Capital’s New Multi-Asset Allocation Fund?

Information you must go through before investing in WhiteOak Capital’s new Multi-Asset Allocation Fund scheme

Multi Asset Allocation Fund
  • Multi-asset allocation fund combines debt and gold/silver in an equity fund

  • WhiteOak Capital’s offering in this category aims to balance volatility and returns

  • Choosing this category depends on the investor’s aims of diversification, multi-asset exposure through professional management and risk management 

In the latest NFO alert, you have the option to invest in WhiteOak Capital Multi Asset Allocation Fund. This equity-oriented hybrid mutual fund scheme will invest in equity, debt and gold and silver-related instruments. 

Also Read: What are the top 11 conservative hybrid mutual funds you should invest this year to get a higher return

WhiteOak Capital Multi Asset Allocation Fund

Let us look at the basic information on this scheme,

  • It is an open-ended scheme that will invest in at least three asset classes with a minimum of 10% weightage in each class

  • The fund manager for the equity investments is Ramesh Mantri, with Piyush Baranwal for the debt investments, Vineet Narang managing the precious metal allocations and Shariq Merchant managing the overseas investments

  • The scheme is open for public subscription since 3 May 2023 and closes on 10 May 2023

  • Continuous repurchase and sale on the scheme will commence from 17 May 2023

  • The minimum investment in this scheme is Rs 500, and in multiples of Rs 1 thereafter

  • There is no investment upper limit

  • The scheme benchmarks are - the S&P BSE 500 TRI (40%), the CRISIL Composite Bond Index (40%), the domestic price of gold (10%), and the domestic price of silver (10%)

  • There is no entry load for investing in the scheme

  • There is a 1% exit load if the units are redeemed or switched within a month of the allotment date. There is no exit load after one month

  • The scheme is categorised as a high-risk scheme

WhiteOak is aiming to cater to conservative investors who are looking to derive high returns while keeping the investment risk-adjusted. This will be ensured through dynamic asset allocation across the multi-asset portfolio with the dual objective of limiting volatility and achieving good returns in the long run.

Also Read: Know more about two multi-asset allocation funds that gave over 12% return in the past 5 years

Comparable Multi-asset Allocation Funds

Some of the peers of this new scheme, along with their performance so far, are -

Comparable Multi-asset Allocation Funds

Why Should You Invest in Multi-asset Allocation Funds?

Multi-asset allocation funds are suited for investors who are looking to diversify their portfolios to include different asset classes through professional management. Thanks to the scheme’s diversification, if the interest rates are low, high liquidity can help the equity market to perform better. 

Multi-asset allocation funds can be rebalanced as per market conditions. Through asset reallocation, the scheme’s managers can maximise the returns as per the changes in the market scenario. 

Besides, there is no entry or exit load on the scheme, so investment and redemption can be done without any significant financial consequences.

Also ReadMulti-asset allocation choosing between balanced advantage funds and multi-asset allocation funds

Having said that, investment in this scheme shouldn’t be a duplication of your existing schemes or direct investments. Besides, the investment shouldn’t be contrary to your risk appetite and existing financial goals. Like all equity-oriented schemes, the real benefit of this scheme can be expected from a long-term investment horizon. 


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