Kotak Mahindra Asset Management Company on Monday announced the launch of Kotak Business Cycle Fund, an open-ended scheme following a business cycle based investment theme, that will invest in stocks and sectors of companies that have been through economic cycles. can navigate.
The scheme opens for public subscription on 7 September and closes on 21 September. Investors can invest minimum amount 5,000 during the period of New Fund Offer (NFO).
According to the fund house, the term “business cycle” refers to the various phases where a company or a specific sector of business goes through a period of expansion, moderation and contraction. Kotak Business Cycle Fund will take into account various economic parameters (GDP growth). , current account deficit, corporate profit growth trend, inflation etc.), investment indicators (capex investment, capacity utilization, credit growth, etc.), any before trade and key economic indicators (business confidence index, purchasing manager index, etc.) is investing.
“The fund aims to move dynamically between different sectors and stocks, where it can benefit from the different economic and business cycles that economics is going through. It will follow a top-down approach to build the portfolio where it will identify the phases of the business cycle and then look at opportunities sector-wise. Once we have identified a sector, we will follow a bottom-up approach where we will try to identify strong companies within that sector. Most of the time, our portfolio will consist of companies from a select few sectors that are likely to perform well in the particular business cycle we are currently in. To select companies within the sector, we will use a combination of factors which includes business, management. and valuation of companies,” according to Pankaj Tibrewal, Senior Executive Vice President, Fund Management Equity, Kotak Mahindra Asset Management.
Nilesh Shah, Group Chairman and Managing Director, Kotak Mahindra Asset Management said, “Kotak Business Cycle Fund offers investors a great opportunity to diversify their equity portfolio as there are equity stocks across all categories, which are better suited at different stages of business. perform. cycles. Even during the challenging times of economic slowdown, these companies have managed to meet the challenges and perform well on various economic parameters.”
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