WhiteOak Capital Mutual Fund Launches New Balanced Hybrid Fund. Details here

livemint.com:

Mutual Fund Scheme and is also eligible for Long Term Capital Gain Tax with Indexation Benefit, with holding period of more than three years. Speaking on the new fund offer, Aashish Somaiyaa, CEO, WhiteOak Capital Asset Management Limited said, “Originally, Balanced Funds were supposed to be just “Balanced".

But because of tax considerations, they took anywhere ranging from 65%-80% exposure in equity, thereby going “Off Balance". So much so that they had to be renamed as “Aggressive Hybrid Funds".

But taxation should never be your prime consideration in determining what risk you take to drive returns. In any case, the current tax regime is not adverse if a fund is managed as a balanced hybrid fund by holding three years, rather than taking high equity to reduce tax impact; thus, the “Balance" can be restored.

This scheme will keep rebalancing allocation to 50:50 at periodic intervals to provide better balance vis-à-vis aggressive hybrid funds on a risk-adjusted basis." Prateek Pant, CBO, WhiteOak Capital Asset Management Limited said, “Investors often make mistakes when they are exposed to extremes of market conditions or asset classes. They end up generating sub-optimal returns from investments because of huge intermittent volatility.

One of the simple but effective strategies to follow is the ‘Balanced Approach’ of having Growth Asset (Equity) and Stability (Debt) in the portfolio. With WhiteOak Capital Balanced Hybrid Fund we intend to follow a simple approach to Portfolio Asset Allocation that can help avoid exposing the portfolio to extreme volatility and, at the same time, can earn reasonable returns over time." The fund allocation includes investing 40-60% in Equity & Equity Related Instruments (including foreign