WhiteOak Capital Balanced Advantage Fund is the new mutual fund in the offing. Is it a good investment choice?

WhiteOak Capital Balanced Advantage Fund NFO

Balanced Advantage Funds of White Oak

Different types of mutual fund schemes in the market are categorized as equity, debt or balanced funds. Balanced or hybrid mutual funds are those that invest in both equity and debt. Among hybrid funds, balanced advantage funds are equity-oriented and quite popular among investors. These funds saw an inflow of Rs.11,658 crores in the last year.

Many mutual fund companies offer balanced advantage funds to their investors. The latest to join the ranks is WhiteOak Capital. A new Asset Management Company, WhiteOak Capital, has launched the New Fund Offer (NFO) of its balanced advantage scheme called the WhiteOak Capital Balanced Advantage Fund. Let’s delve into the NFO details and assess whether it is the right choice.

Related - Here's a complete guide to NFOs

About WhiteOak Capital Balanced Advantage Fund (WOBAF)

The NFO of the fund opens on 20th January 2022, wherein you can invest at a standard NAV. The details of the scheme are as follows –

  • It is a dynamic asset allocation fund which will switch between equity and debt securities depending on market movements.
  • The portfolio will have an equity exposure of 65% to 100%, debt or cash exposure of 0% to 35% and arbitrage investments of 0% to 50%.
  • The net equity weightage will range from 30% to 80%.
  • The fund managers will follow a counter-cyclical strategy when switching between equity and debt.
  • The portfolio will be determined on multiple parameters – the Price-to-Book value, return on equity and yield ratio.

Pros and cons of WhiteOak Capital Balanced Advantage Fund

Merits of the scheme

  • The fund is dynamic and flexible, switching between equity and debt based on market movements. As such, it is expected to align with the market and deliver good returns while minimizing volatility risks.
  • The fund is likely to use the hold strategy in extreme market movements. This strategy will allow the fund to grow considerably during an uptrend and limit its losses in a downtrend. This might deliver good returns and reduce volatility.


  • While the fund's investment strategy seems holistic, investors will have to wait and watch how the fund managers capitalize on market movements. The fund's future performance will be the right indicator of its worth.
  • The company is a relatively new player in the market with no track record. Thus, investors might not gain confidence.

Should you invest in WhiteOak Capital Balanced Advantage Fund?

If you are looking for a mix of equity and debt investments, you can choose the balanced advantage fund. It is recommended to have an investment strategy of three to five years to reap the benefits of the fund.

Being a new fund, WhiteOak Capital Balanced Advantage Fund can give you more units on your investment. However, the fund lacks a track record. So, you can compare the balanced advantage funds available in the market and then choose.

Related - Should you invest in an NFO? Read and find out


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