He New Fund Offering (NFO) It will be available for subscription until September 24, 2024.
Focus on business cycles
The Bandhan Business Cycle Fund aims to capture growth opportunities while managing risks across different market conditions.
The fund tailors sector investments to match economic phases, for example by focusing on the financial sector during expansions and consumer staples during contractions.
According to Vishal Kapoor, CEO, Bandhan AMC, “This fund leverages economic cycles, equity trends and sector dynamics, offering investors a 360-degree approach. It is designed to diversify portfolios and optimise returns, while managing risks by adjusting sector allocations based on market conditions.”
Sector rotation strategy
The economic cycle affects sectors differently.
During expansions, financial and real estate sectors tend to outperform, while consumer staples and utilities remain resilient during contractions.
The fund employs top-down sector selection, focusing on substantial deviations from the Nifty 500 index.
The fund also offers diversification across market capitalizations, focusing on solid businesses and maintaining up to 15% liquidity for risk management.
Should you invest?
The Bandhan Business Cycle Fund is suitable for investors with a long-term view and a higher risk appetite. Its sector rotation strategy could enhance returns by taking advantage of economic phases.
However, the dynamic nature of the fund and its high volatility make it more appropriate for experienced investors willing to take risks.
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