Whitespace Alpha Equity Plus Fund: A Smarter Way to Make Alpha

With the market becoming increasingly volatile, it's becoming challenging to beat indices on a consistent basis. Many investors are now realizing that quantitative investing is the way forward. The Equity Plus Fund by Whitespace Alpha is a SEBI-registered Category III Alternative Investment Fund that seeks to harness the power of quantitative methods while tapping the safety of blue-chip equity to generate alpha for the investors. This fund, which was launched in 2019, has been able to grow assets under management to over ₹3,300 crore, with the Equity Plus scheme alone accounting for nearly ₹950 crore.

The company has had a stellar journey, growing its assets under management manifold after launching India's first-ever Index Plus Strategy in 2019 after getting registration as a Category III Alternative Investment Fund. The fund has also been able to diversify its presence, with successful bilateral investments and the opening of an International Fund in GIFT City.

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The fund is run by a team of experts, including CEO and Fund Manager Puneet Sharma, who brings extensive experience in quantitative investing and has previously worked in M&A and valuation advisory at PwC. He is supported by professionals specializing in portfolio strategy, quantitative modelling, and algorithmic trading, ensuring that investment decisions are backed by research, data, and technology rather than market emotions.

The way the fund works is that a proportion of the money is invested in NIFTY 50 blue-chip stocks, with the rest used for quantitative trading to generate alpha. The additional returns are achieved using the margin available from the Nifty 50 stocks through strategies like index modelling and statistical arbitrage. The focus is to have exposure to high-quality underlying stocks while generating additional returns through quantitative methods.

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The fund has demonstrated exceptional performance since its inception, delivering an annualized return of 21%, compared to the 11.3% generated by the NIFTY 50. During FY2020-21, when the benchmark returned 70.8%, the fund delivered an impressive 91.3%. It continued to outperform in FY2023-24 with 38.6% returns against NIFTY's 28.6%. Even during challenging market conditions in FY2025-26, when the benchmark posted negative returns, the fund managed to remain positive, highlighting its ability to generate alpha while limiting downside risk.

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From an investor's perspective, a minimum deposit of ₹1 crore is required to invest in the scheme. The fund is an open-ended fund with monthly redemptions. However, investors with an exposure between ₹1-3 crore will have their money locked for three years, while others have an option to exit with reduced exit loads for three years. The charges depend on the size of the investment, with a sharp decrease after ₹3 crore. The fund charges performance fees based on the alpha generated over the NIFTY benchmark.

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While Category III AIFs are taxed at a higher rate due to active trading, the returns from the fund have been able to offset these taxes. Even after charges, GST, and taxes, the returns from the fund have been healthy to reward patient investors.

Thus, the Equity Plus Fund by Whitespace Alpha offers exposure to a unique strategy that delivers alpha to the investors on a consistent basis while minimizing downside risk. Investors looking to take a systematic approach to quantitative equity investing with exposure to high-quality blue-chip stocks can consider the fund. With a minimum investment of ₹1 crore, it can be suitable for high-net-worth investors with a long-term investment horizon.

 Disclaimer: This article is intended solely for informational and educational purposes and should not be considered investment advice or a recommendation to invest in the White Space Alpha Fund or any other financial product. Investments in AIFs and other market-linked instruments are subject to market risks. Please read all relevant offering documents carefully. Source: Presentation May 2026

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