HDFC Mutual Fund launches business cycle fund!

Henil Shah
HDFC Mutual Fund launches business cycle fund!

HDFC Mutual Fund on November 10, 2022, launched HDFC Business Cycle Fund. Read on to out more about it.

HDFC Asset Management Company Limited (HDFC AMC) has launched the HDFC Business Cycle Fund, which expands the company's equity offerings. This fund seeks to invest in companies expected to be on the verge of a favourable business cycle. The subscription period for the New Fund Offer (NFO) begins on November 11, 2022, and ends on November 25, 2022.


Benefits of business cycle investment include more trust in business cycle projections vs economic cycle forecasts. During corporate upcycles, investors may profit from both earnings growth and valuation enhancement. In business cycle investing, a flexible investment strategy that dynamically rotates assets depending on the business cycle stage evaluation is required. However, before investing in them, investors should evaluate their risk tolerance and financial objectives.


Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Co Ltd said, “In an era marked by increasing complexities and shortening of business cycles, positioning portfolios well should be a rewarding activity. HDFC AMC aims to support investors to stay ahead by using a blend of a top-down and bottom-up approach, leveraging strengths in its research and fund management team. The launch of this NFO is a further step in the direction of being the wealth creator for every Indian.”


Rahul Baijal, who has more than 20 years of expertise in equity research and fund management, will be in charge of overseeing this scheme.


Commenting on HDFC Business Cycle Fund, Rahul Baijal said, We have observed business cycles across history, and how they impact fundamentals. HDFC Business Cycle Fund brings a blend of top-down and bottom-up approach towards picking companies positioned favourably in their business cycles, to achieve better risk-adjusted returns and aid wealth creation for investors. India is expected to be among the fastest-growing large economies, and strong fundamentals hold us in good stead in a global environment of rising risks. Factors such as improving the health of the banking and real estate sector, and increasing investments by corporates bode well for equities over the medium to long term. We believe that investing in the business cycle fund could be a good allocation strategy and the fund could be held by investors for long periods of time.”

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