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WhiteOak Capital Flexicap Fund is the first equity fund NFO from WhiteOak Capital Management. It is an open ended dynamic equity scheme investing across large, mid, and small cap stocks with an aim to offer its investors benefits of all three market capitalisation. This particular NFO is opened for a period of 12 July 22 till 26 July 22.

So before moving forward let take an overview of WhiteOak Capital Management.

So Whiteoak Capital Management is founded by Prashant Khemka in June 2017. Prior to WhiteOak Prashant served as the CIO of both Goldman Sachs India since March 2007, and Global Emerging Markets Equity since June 2013.

White oak has a AUM of US $4.2 billion and offices in India, Mauritius, Singapore, Switzerland and UK.

Khemka directly managed more than US$5.0 bn out of US$6.5 bn managed by his team. The funds managed by him wins several awards and most importantly he is AAA rated by Citywire for his rolling 3 year risk adjusted performance to April 2021.

He scaled GS India Equity business to US$2.5 bn with distribution across multiple channels in Europe, Asia ,and USA and also scaled GEM business to US$2.6 bn .

During his tenure, the strategy delivered peer group leading cumulative 36.3% gross USD returns vs. 13.1% for its benchmark.

What is Flexicap Fund or whiteOak Capital Flexicap Fund

Basically Flexicap fund is the type of fund that is not restricted to investing in companies with a predetermined market Captalisation. As its name suggested Flexi that means these funds are flexible to invest in. This type of fund structure will be indicated in the funds prospectus. These funds are also known to deliver steady returns even during times of bear market phase.                              

Similarly,the Whiteoak Capital Flexicap Fund is also a flexible fund and provides flexibility to decide the actual portfolio exposure towards companies based on the fundamentals of businesses and their long term growth potential.

The main objective of this fund is to generate long term capitalisation by investing in equity and equity related instruments and is focuses on building a well balanced portfolio and also focus on a bottom-up stock selection process. The minimum investment required for this NFO is Rs 500 and thereafter in multiple of Re 1. Also there is no entry load and exit load of 1% on the NAV will apply on redemption within one month from date of allotment.

Some may ask why Whiteoak Capital Flexicap Fund?

1. No market cap biased: it aims to outperform across different market cycles.
2. Sectoral Balance offers an acceptable risk reward.
3. Power of Diversification: It helps in reducing non-systematic risk with proper diversification.
4. Open- ended so one can invest or withdraw on their own choice.
5. Benchmark Index: S&P BSE 500 TRI
6. A fresh management with its first mutual fund scheme with no baggage.

The various opportunities available category wise:

LARGE CAP:

• Market leaders who can combat market volatility.
• More liquid as compare to small and midcap.
• Sound track record with sustained profitability.
• Offers stability.

MID CAP and SMALL CAP:

• Higher Returns
• More growth potential
• Potential to emerge as Multi Baggers.
• Offers Agility to the Portfolio while creating the wealth.
• Niche businesses, more diversified.
• Future potential leaders.

    So we can say it provides various above opportunities to investors:

• Who invest first time/ young investors looking for all season products.
• Looking for the capital Appreciation opportunities.
• Seeking diversification across three market caps.
• Finding difficult time the market on a regular basis.
• Willing to avoid hassels of deciding allocation amongst large, mid and small stocks on their own.

The asset allocation provides more clearity to investor:

• Equity and Equity related instruments: 65%-100% (Risk Profile – very high).
• Debt securities and Money Markets instruments: 0%-35% (Risk Profile – Low to Medium).
• Units issued by REITs and InvITs – 0%-10% (Risk Profile – very high).

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