Aditya Birla Sun Life MF launches ABSL Business Cycle Fund

ABSL MF said that the fund will follow a top down approach of portfolio creation to identify multiple parameters based on the business cycle, then dive deep into sector cycles and opportunities and identify the portfolio as defensive and non-defensive. areas, followed by a bottom up approach. Identifying strong companies within those sectors using the Fund House at Fair Price Growth (GARP) philosophy.

“It (the business cycle) is divided into four phases – expansion, peak, contraction and bearish, and all four phases have a massive impact on the markets. The length and dynamics of each phase varies depending on several factors such as regulatory, Policies, reforms, geopolitics, domestic or global events, among other things… any investor will need to navigate through these phases of the business cycle, as well as the need to be present in the right sectors at the right time. And that is exactly what Aditya Birla Sun Life Business Cycle Fund will offer investors,” a statement from the fund house said.

Since investors may not be able to identify the phases of economic and sectoral cycles and make changes accordingly, a scheme like Aditya Birla Sun Life Business Cycle Fund can be an investment vehicle to take advantage of the investment opportunities that come with a business cycle. are aligned with the changing phases. ,

Commenting on the launch, Aditya Birla Sun Life AMC MD & CEO A.K. Balasubramaniam said, “The economy, from time to time, goes through phases of expansion and contraction. Research shows that sectors through the business cycle stages do not provide systematic performance. Defensive sectors such as FMCG, Healthcare and IT provide better returns through the contraction phase while non-defensive sectors such as metals, financials and cement provide better returns during the expansion phase. With no sectoral and market cap bias, Aditya Birla Sun Life Business Cycle Fund will actively identify investment opportunities and manage allocation through various business cycles to generate returns.