ABSL Mutual Fund launches the Business Cycle Fund

Aditya Birla Sun Life Mutual Fund announced the launch of the Aditya Birla Sun Life Business Cycle Fund. This is an open-ended action program that follows an investment theme based on the economic cycle.

The new fund offer opens for subscription on November 15 and ends on November 29.

The benchmark of the program is the S&P BSE 500 Total Return Index (TRI), which covers all major industries in the Indian economy.

According to a press release, the device will position the portfolio according to the expected phase of the economic cycle.

Since investors may not be able to identify the stages of business and industry cycles and transition accordingly, a program like Aditya Birla Sun Life Business Cycle Fund may be an investment vehicle to take advantage of investment opportunities that are aligned with the changing phases of an economic cycle. , said the fund house.

“The economy periodically undergoes phases of expansion and contraction. Research suggests that sectors do not offer consistent performance throughout phases of the business cycle. Defensive sectors like FMCG, healthcare and IT offer better returns during the contraction phase, while non-defensive sectors like metals, financials and cement offer better returns during the expansion phase ”, A. Balasubramanian, Managing Director and CEO, Aditya Birla Sun Life AMC, underlined.

“Without sector and market capitalization bias, Aditya Birla Sun Life Business Cycle Fund will actively identify investment opportunities and manage allocation through various economic cycles to generate returns,” said Balasubramanian.


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