Whiteoak Capital Digital Bharat Fund: Date, Review, NAV

WhiteOak Capital Digital Bharat Fund: Complete Overview

Under its AMC WhiteOak Capital Asset Management Limited, WhiteOak Capital Mutual Fund has unveiled the WhiteOak Capital Digital Bharat Fund. The open-ended scheme intends to invest in technology and technology-driven companies.

The WhiteOak Capital Digital Bharat Fund NFO has a minimum investment of Rs.500 and a multiple of Rs.1 after that. This new fund offer is set to close on 04 October 2024 and investors can start investing in this WhiteOak NFO from September 20, 2024. This mutual fund scheme is open for ongoing sale and repurchase within 5 business days from the date of allotment. The Scheme carries risks at a very high level. 

The Scheme will invest 80-100% of its securities in equity and equity-related instruments of the technology and technology-related companies, 0-20% in equity and equity-related instruments of other sectors, 0-20% in debt instruments and cash equivalents, and 0-10% in REITS and InVITs.

The primary objective of the WhiteOak Capital Digital Bharat Fund is to achieve long-term valuation growth. It will primarily seek investments in equity and equity-related instruments focusing on the ‘Tech’ sector. No returns are guaranteed or assured by the scheme.

“While the market focuses on trends that are already hot, our aim with the Digital Bharat Fund is to invest in sustainable long-term themes,”-Somaiyaa.

“The Digital Bharat Fund will focus on Indian technology companies and the ongoing digital transformation in India, aiming for long-term wealth generation.”-Ramesh Mantri.

Keep reading to understand the offerings of this new NFO Mutual Fund below:

 

What is WhiteOak Capital Digital Bharat Fund?

The Fund seeks to generate long-term wealth by investing in technology and tech-related companies to take advantage of this trend. The fund is positioned to take advantage of the changing tech landscape as India's digital economy grows, providing investors with a way to profit from the continuous digital change.

Digital Transformation in India

• UPI payments exceeded Rs.20.07 lac crore in value and 13.89 billion in volume.

• 936.16 million people have internet access.

• Each person uses 24 GB of data every month.

• There are 7.8 lac telecom mobile towers in India.

• 1.4 Bn Aadhaar was produced.

• Maximum number of the youngest population in the world.

• Looks promising for R&D.

• An ecosystem of Startups.

 

New Technology Adoption

• Pharma

• Manufacturing

• Telecommunication

• Media & Entertainment

• BFSI

• Retail

• Energy & Utilities

Where India Stands in the IT Sector.

Only two of the top 10 Indian stocks by market capitalization are currently in the IT industry namely TCS Ltd. and Infosys Ltd.Only nearly 10% of India's total market capitalization is in the tech sector.

IT Sector and Key Indices

S&P 500 Index- 31%

MSCI World Index- 24.7% 

MSCI Emerging Market Index- 24.2%

BSE 500 Index- 10.2%

 

Nifty IT TRI Returns Vs Nifty 500 TRI Returns 

Nifty IT TRI has underperformed and produced returns of 40.3%, 24.1%, and 17.1% whereas Nifty 500 TRI has given returns of 41.1%, 22.7%, and 15.3% in 1 year, 5 years, and 10 years respectively.

 

Why WhiteOak Capital Digital Bharat Fund?

Digital Theme's heterogeneous business models give Active Fund Managers chances.

Aims to gain significant exposure to cutting-edge companies that are leading the way in creating "Digital Bharat".

A bottom-up, market capitalization-neutral method of choosing stocks.

The scheme aims to maintain a High Active Share, one of the components required for possible alpha generation.

Fund Suitability

Digital Bharat Fund by WhiteOak Capital is suitable for investors who are looking for:

• Long-horizon capital growth by investing mostly in equity and equity-related instruments of the technology and technology-related companies.

Scheme Plan: 

WhiteOak Capital Digital Bharat Fund-Direct

WhiteOak Capital Digital Bharat Fund-Regular

 

WhiteOak Capital Mutual Fund Details

• Domestic AUM of Rs.23,753 Crore.

• Total AUM of Rs.78,556 Crore.

• Number of live SIPs are 307k.

 

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Fund Overview

How to Invest in The Scheme After the Closure of The NFO?

If you have missed participating in the NFO and now want to invest in the same Scheme on a continuous basis, then within 5 business days after the date of allotment, when the Scheme will reopen; you will have the option to participate and invest directly in the Mutual Fund by spending at NAV based price by logging on to your Demat account and search for “WhiteOak Capital Digital Bharat Fund” or directly with the AMC or simply click the ‘Banner’ below.

 

 

Asset Allocation (% of Total Assets) of the Scheme's portfolio will be as follows:

 

Peers of WhiteOak Capital Digital Bharat Fund

Since this scheme is new, hence no comparable data on its past performance against its peers is available.

 

Risk Factors In Such Funds

• A minimum of 80% of the Scheme's net assets will be allocated to equity and equity-related instruments of technology and technology-related companies. Because the Scheme is sectoral in nature, it will be impacted by the risks related to investing in this industry.

• Because the scheme's investment universe is primarily restricted to technology-related companies and their instruments, there is a risk that the portfolio will not be sufficiently diversified. As a result, there may not always be as much room for diversification and a high degree of concentration is anticipated among the technology-related companies and their instruments.

• Equities shares and associated instruments are prone to daily price swings and are considered volatile. As a result, the investments linked to equity and equity may lose value.

• The Company's investments may experience changes in value and marketability due to modifications or advancements in India's legal and regulatory environment.

 

Past Performance of BSE Teck TRI Funds

 

WhiteOak Capital Digital Bharat Fund- Fund Managers:

• Mr. Ramesh Mantri

• Ms. Trupti Agarwal

• Mr. Dheeresh Pathak

• Mr. Piyush Baranwal.

Conclusion

The Digital Bharat Fund aims at a long-term investment strategy, as it invests in technology-oriented companies capitalizing on the ever growing digital market of India. It is appropriate only for investors with put up higher risk, to make investment gains through the growth in capital in the technology sector. On the other hand, it possesses substantial risks, for instance, exposure in one sector and fluctuations in the market. An investor ought to evaluate his/her risk appetite before looking into such an investment.

Disclaimer: This NFO analysis is provided solely for informative purposes and should not be considered investment advice. Always conduct research and talk with a financial advisor before investing