Aditya Birla Sun Life Business Cycle Fund, an open-ended equity scheme with a business-cycle-based investing theme, has been launched by Aditya Birla Sun Life AMC Ltd. From November 15 to November 29, a new fund offer (NFO) will be available.
ABSL MF said the fund will use a top-down approach to portfolio construction to identify stages of the business cycle based on multiple parameters, then a deep dive into sector cycles and opportunities, bifurcating the portfolio into defensive and non-defensive sectors, and finally, using the fund house's Growth at Reasonable Price (GARP) philosophy, use a bottom-up approach to identify strong companies within those sectors.
Because investors may not be able to recognize the stages of economic and sectoral cycles and transition accordingly, a scheme like the Aditya Birla Sun Life Business Cycle Fund can be used to take advantage of investment possibilities that are matched with shifting phases of a business cycle.
Aditya Birla Sun Life Business Cycle Fund;
This scheme seeks to identify upcoming cyclical opportunities by estimating:
• The changes in cyclical phase of the economy
• Favorable sectors and opportunities based on the specific economic phase
• To ultimately build a portfolio of industry leaders within these identified opportunities
Why should you invest in this fund?
According to fund house, different cyclical periods favour different sectors: in a contraction phase, defensive sectors like consumer staples and healthcare, which are essential, outperform; in an expansion phase, chances open up in non-defensive sectors with discretionary demand.
This fund has the ability to expand across all business cycles because it focuses on recognizing these opportunities in advance.
The fund also has the ability to invest in select and favorable worldwide opportunities, potentially exposing you to global markets. It has the potential for long-term capital growth because it is an equity fund.
Investors can lodge money meant for the NFO in the Aditya Birla Sun Life Liquid Fund using the NFO Smart Switch. While the NFO will open on November 15, 2021, the NFO Smart Switch will open on October 25, 2021. All existing and new Aditya Birla Sun Life Mutual Fund investors can make the switch easily using our website, ABSL MF Investor APP, or 'Active Account App.' NFO Smart Switch allows you to potentially earn returns on your excess investible funds while also ensuring that you do not lose out on the next NFO.