NFO launch | HDFC MF announces Business Cycle Fund — Key things to know before investing

In business cycle investing, one needs an agile investment strategy that dynamically rotates investments based on assessment of stages of business cycles.

According to Rahul Baijal, HDFC Business Cycle Fund will bring a blend of top-down and bottom-up approach towards picking companies positioned favourably in their business cycles with the aim 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 health of the banking and real estate sector, increasing investments by corporates bode well for equities over 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," he said.

HDFC Business Cycle Fund will manage risks by being adequately diversified across sectors /sub sectors/market cap, and across number of stocks. It is therefore a well-diversified fund suitable for long term investments via both lumpsum and SIP.

Investors may consider this product to gain exposure to businesses likely on the cusp / midst of favourable business cycles, via a fund that is agile in rotation of investments based on assessment of stages of business cycles, and with an investment horizon of 3 or more years, according to HDFC AMC.