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Bandhan Mutual Fund announced the launch of the Bandhan Business Cycle Fund, an open-ended equity scheme following a business cycle-based investing theme. The fund dynamically adjusts sector allocations according to the different phases of the economic cycle—Expansion, Peak, Contraction, and Slump—aiming to capture growth opportunities and manage risks across varying market conditions. The New Fund Offer (NFO) will open on Tuesday, 10 September 2024, and close on Tuesday, 24 September 2024. Investments in the Bandhan Business Cycle Fund can be made through licensed mutual fund distributors, financial advisors, online platforms, or directly at https://bandhanmutual.com/nfo/
Vishal Kapoor, CEO, Bandhan AMC added, “The Bandhan Business Cycle Fund takes a 360-degree approach, tapping into economic cycles, equity market trends, and sector dynamics to capture emerging opportunities. The Fund is designed to enhance portfolio diversification and aims to maximize returns while managing risks associated with economic fluctuations by adjusting sector allocations based on market conditions. The Bandhan Business Cycle Fund is ideal for investors with a long-term investment horizon and a higher risk appetite, looking to diversify their portfolios with a sector-rotation strategy that may enhance returns by capitalising on the economic cycle."
The business cycles represent the natural rise and fall of economic growth, with each phase impacting different sectors in unique ways. For instance, financials and real estate may outperform during expansion phases, while consumer staples and utilities tend to be more resilient during contractions. With a top-down sector selection approach, the fund aims for substantial deviation in at least 3 of the top 5 sectors by weight in the Nifty 500 index. It offers diversification across market caps, focusing on robust businesses, with liquidity managed through a higher cash position of up to 15%. By strategically adapting its sector allocation, the Bandhan Business Cycle Fund aims to optimise returns by aligning investments with prevailing economic conditions.