Equity markets are getting cheaper by day as the global economic uncertainty continue to cloud the potential growth in India.
In last three years, the benchmark indices BSE Sensex and NSE Nifty have not moved much though they have been volatile depending on the emerging trends, said Aashish Somaiyaa, CEO, WhiteOak Capital Mutual Fund on the sidelines of an event to launch the fund house’s new fund offer on Friday.
Sensex rose from around 58,200 points in 2021 to 60,800 points in 2022 and currently the index is trading almost flat at about 60,900 points. Similarly, Nifty moved up from 17,300 in 2021 to 18,100 last year and is currently trading at 18,000, he added.
This is the right time for investors to consider equity investments for building wealth over longer-term, said Somaiyaa.
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The NFO of WhiteOak Capital Multi Asset Allocation Fund, which will open for subscription on May 3, will dynamically invest in domestic equity (15-45 per cent), debt (10-55 per cent), gold (10-40 per cent) and foreign equities (up to 10 per cent) using internal proprietary model by figuring out the relative attractive asset classes.
The scheme is eligible for long-term capital gains tax with indexation benefit if the holding period is more than three years.
Prateek Pant, CBO, WhiteOak Capital Mutual Fund, has said the new fund will invest across asset classes that perform differently during various market cycles. A judicious mix of these asset classes helps in reducing portfolio volatility and generating reasonable returns over longer time periods, he said.