A new fund focussing on possibilities in digital technology is on offer from WhiteOak Capital Mutual Fund. Branded as ‘WhiteOak Capital Digital Bharat Fund,’ it is an open-ended equity mutual fund scheme which will focus mostly on technology-related stocks. This fund intends to achieve a long-term appreciation of capital through investment in equities of tech stocks.
The process of subscription has begun on Friday, September 20 and will close on Friday, October 4, 2024. The fund will use BSE Teck TRI as the benchmark which the investors will be able to measure performance returns against.
Equity to REIT
The AMC has said that 80% to 100% of the money will be deployed in equity and equity-related instruments in technology and technology-related equities. Accordingly, 0% to 20% of the money from the fund will be allocated to debt instruments and money market instruments. REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) will also be within the radar of the fund managers who could allocate a maximum of 10% of the fund in these domains.
Elaborating on the logic of the fund, the chief executive officer of the AMC Aashish Somaiyaa has told the media that investors tend to invest in growth-oriented mutual funds but often end up putting their money into themes that have been moving up already over 2-3 years and thereby miss much of the growth benefits.
Counter-cyclical theme
In Somaiyaa’s words, this NFO will provide investors the opportunity to choose a fund with counter-cyclical theme for sustainable growth.
Ramesh Mantri, the CIO (Chief Investment Officer) of WhiteOak Capital AMC has told the media that India has a competitive advantage in cloud computing, data analytics, and automation which would power innovation and growth in industries such as agriculture, education, logistics and healthcare across a diverse spectrum.
Risk
The risk-o-meter indicates that investment in this equity-oriented fund can be very risky. One should consult a qualified investment advisor before putting one’s hard-earned money into this fund.
(Disclaimer: This article is only meant to provide information. News9live.com does not recommend buying or selling shares or subscriptions of any IPO and Mutual Funds.)
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