Tata Business Cycle Fund is an open-ended mutual fund scheme that follows a business cycle-based investing theme.
| Good to know
What is a business cycle? A business cycle refers to the changes in economic activities over a period of time. An economy goes through various phases such as growth, slowdown, recession and recovery. For instance, when the expansion ends, the slowdown begins. Following this, there may be a recession and then the recovery commences. This again leads to expansion or growth. Simply put, an economy goes through cyclical upward and downward trends, which are characterised as business or economic cycles. |
Investment objective
Every business cycle offers an opportunity for investors to tailor their portfolio to benefit from these swings.
Tata Business Cycle Fund aims to take advantage of these economic trends and invest in sectors and stocks that are expected to outperform in a particular economic phase or cycle. For example, stocks of midcap and smallcap companies, emerging market equities, young growth-oriented firms and industries do well during an economic upswing. Whereas, large and stable companies, which have steady consumer demand, tend to outperform during a slowdown or recession.
The fund will incorporate these business cycle themes to make the most of the economic environment. To determine the phase of the economy, the fund manager will examine various economic and investment parameters as well as business and consumer sentiments data.
This fund is suitable for investors with a long-term horizon.
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| Instrument | Indicative Allocations (% of total assets) | Risk Profile | |
| Minimum | Maximum | ||
| Equity & equity-related instruments selected on basis of business cycle | 80 | 100 | High |
| Other equity and equity-related instruments | 0 | 20 | Medium to high |
| Debt and money market instruments and gold ETF | 0 | 20 | Low to medium |
| Units issued by REITs and INVITs | 0 | 10 | Medium to high |
Scheme details
| Name | Tata Business Cycle Fund |
| Type | An open-ended equity scheme following business cycles based investing theme |
| Category | Equity-based mutual fund |
| Investment objective | To generate long-term capital appreciation by investing with focus on riding business cycles through allocation between sectors and stocks at different stages of business cycles. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. The scheme does not assure or guarantee any returns. |
| Benchmark | Nifty 500 TRI |
| Entry/Exit Load |
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| Fund managers |
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| Plans | Regular and Direct |
| Expense ratio | Up to 2.25% |
| Minimum application amount | ₹5,000 and in multiples of ₹1 thereafter |
| Additional application amount | ₹1,000 and in multiples of ₹1 thereafter |
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| This product is suitable for investors who are seeking**: | Riskometer |
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**Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
Note: The above information has been sourced from the Scheme Information Document provided by Tata Asset Management. To read the entire document, click here.
Disclaimer: RKSV Securities India Private Limited (ARN/Distributor - 107930; brand name Upstox) is the distributor of the mutual fund. Please consult your investment advisor before investing.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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