- • A business cycle basically refers to the cyclical movements between periods of prosperity and despair in the economic activity of a country.
- • These cycles come in phases that can last from a few months to a couple of years.
The Phases of a Business Cycle - • Expansion – A sector or an economy is going through a cycle of high growth
- • Peak – The expansion phase reaches its highest level, and the growth stabilizes
- • Contraction – The growth in the sector or the economy starts to decline
- • Slump – The growth hits its lowest point and then stabilizes at that level
Each of these phase favours growth in different sectors and opens different cyclical opportunities which calls for a unique investing style – ‘Business cycle-based investing’
ഞാന് നിക്ഷേപിക്കാന് തയാര് ഇവിടെ ക്ലിക്ക് ചെയ്യൂ
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Presenting Aditya Birla Sun Life Business Cycle Fund
•What is it?
An open-ended equity scheme following a business cycle based investing theme.
• Investment Objective
To provide long term capital appreciation by investing predominantly in equity and equity related securities with a focus on riding business cycles through dynamic allocation between various sectors and stocks at different stages of business cycles in the economy.
• Investment Strategy
Aims to deploy the business cycle approach of investing by identifying economic trends and investing in the sectors and stocks that are likely to outperform at any given stage of business cycle.
- – Would adopt top-down approach of investing and will aim at being diversified across various industries and / or sectors and/ or market capitalization.
- – Would consider economic parameters, investment indicators, business and consumer sentiment to decide on the stage of the economic cycle.
- – Based on the views formed on the stage of the economic cycle, the fund managers would look to own sectors and subsequent stocks that they expect to outperform over the next few years.
Why should you invest in Aditya Birla Sun Life Business Cycle Fund?
- • Make your portfolio conscious of business cycles Different cyclical phases tend to favour different sectors. By focusing on identifying these opportunities in advance, this fund has the potential for growth through all business cycles.
- • Get a ‘first mover’ advantage through fund manager expertise Expert fund managers seek to pre-empt cyclical changes and opportunities in finding industry leaders to maximise potential of growth for investors.
- • Flexibility & Diversification Can invest across all market sectors, themes and market caps.
- • Global exposure The fund also has the flexibility to invest in select and favourable global opportunities, giving you the potential exposure to global markets as well
- • Potential for long term capital appreciation Being an equity fund it has the potential for long term capital growth
Key features and approach:
- The Fund will follow top down approach to identify stage of business cycle, sector opportunities and subsequently use bottom up approach to identify strong companies within those sectors
- The Fund will invest across sectors and market-caps
- Portfolio will be bifurcated between Defensives & Non-Defensive Sectors. Defensive sectors usually have stable earnings irrespective of stage of business cycle; while for non-defensive sectors earnings vary with the stage of business cycle
- Fund endeavours to capitalize on select global opportunities aligned with business cycle theme
ഞാന് നിക്ഷേപിക്കാന് തയാര് ഇവിടെ ക്ലിക്ക് ചെയ്യൂ