The world of investing is full of options, many a time too many and too confusing options. One needs to carefully navigate these options and make choices which are meaningful & relevant. Ultimately these choices affect our financial well being in the long run.
Today we analyze one of the choices available before us, which is the White Oak Capital Flexi Cap Fund NFO. We had the same question as you may have. Why ? Why the NFO ? Why White Oak ?
So here is a small note to share a few important reasons WHY you could look at investing in this NFO.
Let’s start off with the fundamentals itself.
Table of Content
What is a NFO?
A New Fund Offer is when an Asset Management offers up a new fund for the first time for subscription to investors. The corpus collected in the NFO becomes the base for allotment and after listing it is opened to people for ongoing subscription and redemption.
Why is this a good time to invest in an NFO?
- Value : As you would know, while Indian equity markets have been exhibiting volatility in the last 8-12 months, PE ratio (Price–earnings ratio) is a valuation tool used by investors to gauge whether a stock or market is relatively expensive.
- Expensive or Cheap: We all would want to Buy cheap and sell expensive, Right ? So how does one decide whether the market as an aggregate is cheap or expensive today? Well, Let’s look at the last 25 years PE ratio of BSE Sensex, as an Index, A very good proxy to the aggregate market.
|BSE Sensex PE|
|25 Year Average||20|
|15 Year Average||22|
|10 Year Average||23|
So we are cheap now ? The Answer is NO.
But are we closer to Long term Average, the Answer is YES
Should we adding to our over all Equity exposure, YES
To drive home the point one should also look at how the PE of BSE Sensex has moved over the last 12 odd months.
So basically from a valuation standpoint, relatively market is now almost 34% cheaper than what it was in April’ 21.
Can it go down Further, Absolutely YES
But Can we accurately predict that, answer is NO
So what do we need to do ?
The answer lies in keeping our portfolio balanced, making sure that our allocations to an asset class like equity are closely monitored and take advantage of market corrections and add equity allocations. This is where the NFO comes in.
NFO’s also have another major advantage, i.e the fund manager has a leeway to deploy the corpus collected in the NFO over the coming 6 months. So the volatile phase that we are seeing can actually be used for our advantage.
That being said the next question could be –
Why to invest in White Oaks Capital Flexi Cap Fund NFO?
- Flexi Cap Category – This NFO is a flexi cap fund which will give your portfolio the flexibility of all large, mid and small cap. It helps in reducing non systematic risk by providing proper diversification and ultimately giving you a balanced fund.
- No Market Cap Bias – The Flexi Cap fund category also opens doors to hoards of investment opportunities, allowing the fund to invest in companies across all market capitalization without any restriction based on market caps.
- Diversification – With no biases and restrictions the fund will invest in the best and most diversified options helping you achieve your portfolio goal of diversification and risk mitigation.
Who should Invest?
If you are a first time or young investor looking to build a strong portfolio that spans across different market caps without bias this is the fund for you! The fund will help you achieve long term capital appreciation and give your portfolio the diversification boost its needs.
If you wish to avoid the hassle of trying to time the market regularly and deciding allocation among large, mid and small cap then check out the White Oaks Flexi Cap Fund NFO today. NFO closes on 26th July 2022.