WhiteOak Capital has introduced a new open-ended mutual fund, the WhiteOak Capital Arbitrage Fund. This scheme focuses on capitalising on market inefficiencies through strategic arbitrage opportunities across cash and derivatives segments.

The New Fund Offer (NFO) for the WhiteOak Capital Arbitrage Fund has opened for subscription on Wednesday (August 28) and will close on September 3.

The minimum investment amount is ₹500 and in multiples of ₹1 thereafter.

The scheme will reopen for continuous sale and repurchase within five business days from the date of allotment.

The primary aim of the WhiteOak Capital Arbitrage Fund is to generate returns by investing in arbitrage opportunities while maintaining a balanced allocation in debt and money market instruments.

The fund seeks to achieve capital appreciation by leveraging market price discrepancies.

Investment strategy

The WhiteOak Capital Arbitrage Fund employs an arbitrage strategy, investing in opportunities across equity cash and derivatives markets.

The fund will aim to exploit price differences between these segments to generate returns. It will also allocate a portion of its portfolio to debt and money market instruments for additional stability.

Benchmark

The fund’s performance will be benchmarked against the NIFTY 50 Arbitrage Total Return Index (TRI), which is reflective of the arbitrage strategy employed by the fund.

This benchmark aligns with the scheme’s investment objective and strategy.

Plan options

Investors can select between two plans: the Direct Plan and the Regular Plan. Both plans offer a Growth option.

The default plan is the Regular Plan – Growth Option. Currently, the scheme does not offer the Income Distribution cum Capital Withdrawal (IDCW) option.

Redemption and Liquidity

Units of the fund can be redeemed at Net Asset Value (NAV) based prices on all business days.

Redemption requests will be processed within three working days, as per SEBI regulations.

The scheme is not listed on any stock exchange.

Exit Load

An exit load of 0.25% applies if units are redeemed or switched out within 7 days of allotment. No exit load is charged for redemptions or switches made after 7 days.

This exit load structure is applicable to all transactions, including Systematic Withdrawal Plans (SWP) and Systematic Transfer Plans (STP).