HDFC Business Cycle Fund minimizes risk by being adequately diversified across sectors/sub-sectors/market caps and multiple stocks.
HDFC Business Cycle Fund: HDFC Asset Management Company (HDFC AMC) has launched HDFC Business Cycle Fund. The objective of this fund is to invest in potential businesses during the favorable business cycle. This New Fund Offer (NFO) will open tomorrow i.e. on 11 November and investors can invest in it till 25 November. In a statement, HDFC AMC said that just like GPS helps us choose better routes to reach our destination faster, HDFC Business Cycle Fund aims to generate better returns by investing in companies that are entering the downcycle of business. Enjoy a favorable business cycle while avoiding companies that do.
NFO Alert: Mutual Fund House HDFC Mutual Fund has brought a new scheme in the sectoral/thematic category in the equity segment. HDFC Mutual Fund has launched HDFC Business Cycle Fund. The objective of the scheme is long-term wealth creation by investing in equity and equity-related securities. This is an open-ended scheme. That is, the investor can withdraw money whenever he wants. This NFO opened for subscription on 11 November 2022. The NFO will close on 25 November 2022.
Investment can start from ₹ 100
According to HDFC Mutual Fund, investment in HDFC Business Cycle Fund can be started with a minimum of Rs 100. This is an Equity Scheme (Sectoral/Thematic). This open-ended scheme has an exit load of 1%. That is, 1% exit load will have to be paid on redemption or exit from the scheme within one year from the date of allotment.
better scheme for whom
According to the mutual fund house, this can be a better option for investors who want long-term capital appreciation/income. Investments will be made in equity and equity-based instruments. HDFC Business Cycle Scheme is in the ‘Very High’ category on Riskometer. In case of any ambiguity related to the scheme, consult your financial advisor. Fund allocation in this scheme will be done in sectors and stocks with different sector stages of different business cycles.
What is special about this NFO
HDFC Business Cycle Fund is an open-ended equity scheme based on the business cycle investment theme. According to the AMC, business cycle investing offers advantages such as higher confidence in business cycle forecasts versus economic cycle forecasts. In business downturns, investors can reap the twin benefits of growth in earnings and improvement in valuations. Business cycle investing requires an agile investment strategy that invests based on an assessment of the phases of the business cycle. Navneet Munot, Managing Director and Chief Executive Officer, of HDFC AMC, said, “In an era of increasing complexities and shortening business cycles, a well-managed portfolio should be beneficial. HDFC AMC aims to help investors generate profits through a top-down and bottom-up approach while leveraging its research and fund management team.
HDFC Business Cycle Fund will be managed by Rahul Baijal, who has over 20 years of experience in fund management and equity research.
Who should invest?
HDFC Business Cycle Fund minimizes risk by being adequately diversified across sectors/sub-sectors/market caps, and multiple stocks. It can be better for long-term investment through lump sum and SIP.
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(Disclaimer: The views expressed above are those of HDFC AMC and the respective commentators. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing in this fund.)