Aditya Birla Sun Life Business Cycle Fund REVIEW
Aditya Birla Sun Life has launched Business Cycle Fund NFO which is open for subscription on November 15, 2021. It is an open-ended equity scheme. It will focus on riding the business cycle through dynamic allocation between different sectors and stocks at different stages of the business cycle in the economy
The investment objective of the scheme is to provide long term capital appreciation by investing predominantly in equity and equity related securities with a focus on riding business cycles through dynamic allocation between various sectors and stocks at different stages of business cycles in the economy.
The Fund would follow top down approach of portfolio construction to identify stage of business cycle, sector opportunities and subsequently using bottom up approach identify strong companies within those sectors.
The Scheme would aim to deploy the business cycle approach in investing by identifying economic trends and investing in the sectors and stocks that are likely to outperform at any given stage of business cycle. The fund manager will consider economic parameters (like Current Account Deficit, fiscal deficit, interest rates, inflation), investment indicators (like investment in capex, new projects cleared, etc.), business and consumer sentiment (purchasing manager index, business confidence index, sales of various consumer discretionary products, etc.) to decide on the expansion or contraction phase. For instance, during the early expansion phase, cyclical stocks tend to outperform. In the contraction period, the defensive groups or sectors that are less sensitive to changes in overall economic activity like healthcare, consumer staples, etc. outperform because of their stable cash flows and dividend yields.
The performance of the scheme will be benchmarked to the performance of S&P BSE 500 TRI).
Under normal circumstances, the asset allocation of the Scheme will be as follows:
Normal Allocation (% of total Assets)
Equity & Equity related instruments selected on the basis of business cycle
80% - 100%
Other Equity & Equity related instruments
0% - 20%
Debt and Money Market Instruments
Low to Medium
0% - 20%
Units issued by REITs & InvITs
Medium to High
0% - 10%
NFO Issue Details
Scheme reopens for continuous purchase/sale
Within 5 working days
Rs 100 for 6 months
NAV of the fund
Rs 10 during NFO period
1% if redeemed within 1 year
Very High Risk
S&P BSE 500 TRI
Mr. Vineet Maloo and Mr. Nitesh Jain
Performance of existing Multicap Funds
Here is the performance of some existing business cycle funds. This would give an idea to investors on how these funds have performed in medium to long term. Returns indicated here are annualized returns.
3 Mth Ret ( % )
6 Mth Ret ( % )
1 Yr Ret ( % )
3 Yr Ret ( % )
L&T Business Cycles Fund
ICICI Pru Business Cycle Fund
Tata Business Cycle Fund
Baroda Business Cycle Fund
This product is suitable for investors who are seeking*
Investors looking for long-term Wealth Creation
Investors whose investment time horizon is five years or more, this scheme may be suitable for them.
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