The scheme seeks to generate long-term capital appreciation by investing predominantly in equity and equity-related instruments with a focus on riding business cycles through dynamic allocation between various sectors and stocks at different stages of business cycles in the economy. Disclaimer: There is no assurance or guarantee that the scheme`s objectives will be realised.
Bandhan Business Cycle Fund is an open-ended thematic scheme that will invest predominantly in equity and equity related securities with dynamic allocation between sectors and stocks based on various stages of the business cycles. The scheme will be actively managed and flexible, allowing investments across market caps and sectors, with a focus on high-quality companies. The business cycle represents fluctuations in economic activity. It represents the crests and troughs of an economy. The scheme will look to invest in the different stages of a business cycle namely - expansion, peak, contraction and slump. Depending on the phase of the cycle, the scheme will seek to invest in either historically booming or more resilient stocks. The scheme will identify sectors based on the business cycle and aim to select stocks based on various financial parameters. The scheme will keep evaluating the portfolio based on continuous assessment of the macroeconomic environment and subsequent investment approach. The scheme will follow a top-down approach based on factors like macroeconomic indicators (global economic growth, monetary policy, liquidity, geopolitics), domestic economic outlook (monetary and fiscal policies, credit cycles, rural and urban economies), government reforms (production incentives, digitization, tax policies), private consumption and capital expenditure trends. The fund manager will favour companies that are most attractively valued relative to their quality of management, business model & financial metrics. The fund will take a focused approach on select sectors to capture the potential opportunities based on the cycle. The business cycle would be assessed based on parameters such as economic cycle, market cycle, as well as sector cycle which would influence the sector and stock selection. The fund manager would evaluate the economic cycle based on the interest rates, money supply, credit growth, exchange rate, economic activity, etc. The market cycle will be guided by the different phases of the economy and the business fundamentals (earnings growth and valuation multiples). Based on the phases of the economy, sectors typically tend to rotate as the overall economy shifts from one stage of the business cycle to the next. As different sectors assume leadership in different economic phases, the fund would intend to allocate through dynamic allocation between various sectors and stocks. The fund will have the flexibility to invest in a broad range of companies with an objective to maximise the returns, at the same time trying to minimize the risk by reasonable diversification. Though every endeavour will be made to achieve the objective of the Scheme, the AMC / Sponsors / Trustee does not guarantee that the investment objective of the Scheme will be achieved. No guaranteed returns are being offered under the Scheme.
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