WhiteOak Capital Mutual Fund rolls out All New Arbitrage Fund; Offering Low-Risk Investment Opportunity
The WhiteOak Capital Mutual Fund has launched a new fund avenue called the WhiteOak Capital Arbitrage Fund. It would be an open-ended scheme for the investors to capitalize on the arbitrage opportunities across all categories.
The new fund offer of the scheme will open for subscription on August 28, 2024, and will close on September 3, 2024. Thereafter, the scheme will also be open for continuous buying and selling not later than five business days from the date of allotment.
The scheme will aim to generate returns by exploiting arbitrage opportunities between the cash and derivatives segments of the equity markets, with the rest invested in money market/cash market instruments. It will also invest in debt and money market instruments for portfolio balancing.
The WhiteOak Capital Arbitrage Fund would be benchmarked against the NIFTY 50 Arbitrage TRI and would be managed by Ramesh Mantri, Ashish Agrawal and Piyush Baranwal.
There would be an exit load of 0.25% levied on redemption or switch-out within seven days from allotment. No exit load would apply, provided units are redeemed or switched out after seven days.
The minimum investment required to begin with is Rs.500 as a lump sum investment, and additional investments are to be made in multiples of Re 1. In the case of a Systematic Investment Plan, the application commences with the minimum consideration of Rs.100 and the number of installments shall not be less than six. The minimum additional purchase will be Rs.500.
Under normal circumstances, the asset allocation of the Scheme would be as under 65-100% Equity, Equity related instruments and Equity Derivatives and 0-35% Debt Securities, Money Market Instruments and 0-10% Units issued by REITs and InvITs. Under defensive situations, the Scheme shall invest 0-65% Equity and Equity related instruments and Equity Derivatives and 35-100% Debt Securities and Money Market Instruments and 0-10% Units issued by REITs and InvITs.
This scheme is suitable for investors looking for short-term to medium-term returns by investing predominantly in the arbitrage opportunities available in the equity market. The investment risk, as indicated by the riskometer of the fund for this scheme, is considered “low.”
