ABSL Mutual Fund launches Business Cycle Fund

Aditya Birla Sun Life Mutual Fund has announced the launch of Aditya Birla Sun Life Business Cycle Fund. It is an open-ended equity scheme that follows a business-cycle-based investing theme.

The New Fund Offer opens for subscription on November 15 and closes on November 29.

The benchmark index for the scheme is S&P BSE 500 Total Return Index (TRI), which covers all major industries in the Indian economy.


According to a press release, the scheme will position the portfolio based on the expected phase of the business cycle.

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

“The economy, periodically, undergoes expansionary and contractionary phases. Research suggests that sectors do not provide systematic performance through business cycle phases. Defensive sectors, like FMCG, healthcare and IT provide better returns through the contraction phase while non-defensive sectors like metals, financials and cement provide better returns during the expansion phase," A. Balasubramanian, MD & CEO, Aditya Birla Sun Life AMC, pointed out.

"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,” said Balasubramanian.