What is business cycle fund investing

1.A Business cycle has distinct phases —expansion, moderation and contraction.
2.The Fund manager tracks various economic and investment parameters to identify the phase of business cycle for various sectors.
3.Based on the lead indicators, the fund manager will invest in sectors and companies that will outperform in the phase of the economy.
4.Unlike Others sectoral funds, here the sectors will keep rotating as per the change in the business cycle.
5.Suitable for long-term investors with a high risk tolerance.


Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.