Aditya Birla Sun Life Business Cycle Fund is an open-ended mutual fund scheme that follows a business cycles 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
Business cycles play an important role in investing, as investors need to align their investments accordingly to garner strong returns. For instance, defensive sectors such as FMCG, healthcare and IT tend to provide better returns when the economy is in the contraction phase. Whereas, non-defensive or cyclical sectors like metals, financials and cement provide good returns during the expansionary phase of the economy.
Hence, Aditya Birla Sun Life Business Cycle Fund offers an opportunity to investors to benefit from such different stages of business cycles in an economy. It will focus on riding business cycles through dynamic asset allocations between various sectors and stocks.
For identifying investment opportunities, the fund will follow a top down approach by examining multiple parameters, sector cycles and opportunities. Following which, it will also deploy a bottom-up approach to identify strong companies within sectors by using the fund house’s Growth at Reasonable Price (GARP) philosophy. It will also aim to capitalise on select global opportunities by following global industry trends.
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 | High |
| Debt and money market instruments | 0 | 20 | Low to medium |
| Units issued by REITs and INVITs | 0 | 10 | Medium to high |
Scheme details
| Name | Aditya Birla Sun Life Business Cycle Fund |
| Type | An open-ended equity scheme following business cycles based investing theme |
| Category | Equity |
| Plans | Regular and direct |
| Benchmark | S&P BSE 500 TRI |
| Entry/Exit Load |
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| Fund managers | Mr. Vineet Maloo and Mr. Nitesh Jain |
| Options | Growth and IDCW |
| Expense ratio | Up to 2.25% |
| Minimum application amount | ₹500 and in multiples of ₹1 thereafter |
| Additional application amount | ₹500 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 Aditya Birla Sun Life 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.