The new fund offer or NFO of the scheme is open for subscription and it will close on September 14. The scheme will reopen for subscription within five business days from the date of allotment of units under NFO.
The investment objective of the scheme is to provide long-term capital appreciation / income by investing across market capitalisations and managing a diversified portfolio of large cap, mid cap and small cap stocks.
The performance of the scheme will be benchmarked against NIFTY 500 Multicap 50:25:25 TRI.
The scheme will be managed by Ramesh Mantri (Equity), Trupti Agrawal (Assistant Fund Manager), Piyush Baranwal (Debt), Shariq Merchant (Overseas Investments).
The scheme will offer both regular and direct plans with growth option. Currently, the scheme is not offering the IDCW option. The scheme will invest 75-100% in equity and equity-related instruments of large, mid, and small cap companies, 0-25% in debt securities and money market instruments, and 0-10% in units issued by REITs and InvITs. The minimum application amount is Rs 500 and in multiples of Re 1 thereafter during the new fund offer period. The minimum investment amount for weekly, fortnightly, and monthly SIP is Rs 100 (plus in multiple of Re 1) with minimum six instalments. The minimum investment amount for quarterly SIP is Rs 500 (plus in multiple of Re 1) with minimum four instalments.
The scheme will follow an investment strategy to invest in businesses based on stock selection and to avoid focusing on macro events. The scheme will be focusing on superior stock selection while maintaining a “High Active Share” approach with reasonable allocation to small and mid-cap segments. The scheme will strategically allocate its assets across the market cap spectrum to optimize returns across different market conditions.
The scheme is suitable for investors who are seeking long-term capital appreciation and are looking for investment in an equity and equity-related instruments across the large cap, mid cap and small cap stocks.
“MultiCap Funds are an ideal component for the long-term allocation in any equity investors’ portfolio. With our deep bench of seasoned investment professionals, we at WhiteOak Capital are well positioned to take advantage of the broad mandate of investing across small, mid and large cap names backed by bottom-up research and balanced portfolio construction aimed at delivering consistent performance. We aim to avoid being part of the rampant “winner rotation” phenomenon that plays out in our markets with the best performing fund and fund manager changing every 18-24 months,” said Aashish Somaiyaa, CEO, WhiteOak Capital Mutual Fund.
“At WhiteOak Capital we believe that outsized returns can be earned over time by investing in great businesses at attractive valuations. So, instead of taking skewed macro bets on sectors or on particular style, our focus is on meticulous stock selection, driven by thorough research and analysis. We do believe that no particular style performs consistently every year and likewise, sector and market cap performance keeps rotating year on year. Furthermore, there may be prolonged cycle of out-performance and under-performance. Hence, a factor diversified balanced portfolio like WhiteOak Capital MultiCap Fund is designed with an intent to deliver consistency of the performance in an uncertain global macro and market environment,” said Ramesh Mantri, CIO, WhiteOak Capital Mutual Fund.
Should you invest? ETMutualFunds always ask investors to invest in an NFO only if it offers something unique – that is, some investment option that is not available in the market or adding something to the existing available option.
There are around 22 schemes in the multi cap category. Around seven schemes have a performance record of five years. Five schemes are relatively new in the category.
Quant Active Fund gave the highest return of around 21.58% in a five-year horizon, followed by Mahindra Manulife Multi Cap Fund which gave 17.54%. Nippon India Multi Cap Fund, the largest scheme in the category based on assets managed, gave 16.44%. Baroda BNP Paribas Multi Cap Fund offered 13.86%. Sundaram Multi Cap Fund, and ICICI Prudential Multicap Fund gave 12.64%, and 12.46% respectively. Invesco India Multicap Fund offered 11.60% in five years.
Multi cap schemes invest across large cap, mid cap, small cap stocks. As per the SEBI norms, the schemes are mandated to invest 25% of total assets each in large cap, mid cap, small cap stocks. These schemes are typically recommended to aggressive investors with a long investment horizon as they invest in mid and small cap stocks.
ETMutualFunds do not recommend any multi cap schemes because the category doesn’t have a long performance record. The multi cap category was introduced in October 2017 as part of recategorisation. The investment limit of 25% in large, mid,and small cap stocks was introduced in September 2020.
