New Delhi: HDFC Asset Management Company Limited has announced the launch of a business cycle fund, which aims to invest in businesses that are likely to be in the middle of a favorable business cycle or in the middle.
The new fund offer (NFO) for HDFC Business Cycle Fund opens on 11 November and closes on 25 November.
According to the Fund House, HDFC Business Cycle Fund will try to achieve better investment results by investing in companies that are likely to enjoy favorable commercial cycles, while companies avoid entering the business decline. Huh.
Business cycle investment enjoys profit, such as high confidence on business cycle forecast against the forecasts of the economic cycle. In business upsables, investors can get from double benefits of increasing income and improvement in evaluation. In such investment, one requires a tight investment strategy that dynamically rotates the investment based on the stages of the business cycles.
Navneet Munot, Managing Director and CEO, HDFC Asset Management Company Limited said, “In an era of increasing complexities and shortening business cycles, portfolio positioning may well be a rewarding activity. HDFC AMC aims to support investors to stay ahead by using a mix of top-down and bottom-up approach, leveraging the strengths in its research and fund management team. The launch of this NFO is another step towards becoming a wealth creator for every Indian.”
The plan will be managed by Rahul Baijal, who has more than 20 years of experience in fund management and equity research.
Baijal said, “We have looked at business cycles throughout history, and how they affect fundamentals. India is expected to be one of the fastest growing large economies, and strong fundamentals leave us vulnerable to increased risks. Well placed in the global environment. Factors like improving health of the banking and real estate sector, increasing investments by corporates augurs well for equities in the medium to long term. We believe investing in Business Cycle Fund is a good option. There can be a good allocation strategy and the fund can be kept with the investors for a long time.”
HDFC Business Cycle Fund will manage risks from sectors, sub -areas or market capitalization and adequate variety in the number of shares.
The Fund House said that investors could consider the product that they can get the possibility of exposure to businesses between CUSP or favorable business chakras through a fund, which invests based on the assessment of the stages of the business cycles The rotation is agile, and in three or more years with an investment horizon.
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