Business cycle refers to the natural rise and fall of economic growth that occurs over time and it moves over the following phases – expansion (rising economic activity), peak (maximum growth), contraction (declining growth) and slump (trough of the cycle). While these phases impacts different sectors of the economy in various manners, these phases can be leveraged to grab profits in the market.
Risk, minimum investment, stock selection
The fund has been categorised as “very high” in the risk-o-meter. The benchmark index of this fund will be the Nifty 500 TRI. The minimum investment will be Rs 1,000 and multiples of Re 1 beyond that amount.
Stock selection would be done through a bottom-up approach. Strong governance, background of management, efficiency in capital allocation, sustainability of business model and alignment with shareholder interest would serve as the benchmarks.
Who can consider
It is fit for investors who are not averse to taking risks. On the contrary, they should be willing to take higher risks to pursue higher returns. The management of the AMC says that SIPs would be an appropriate mode to invest in this fund. If an investor is keen to seek higher alpha – in simple words, higher returns on a given degree of risk – he/she can consider this fund.
Infra and real estate examples
Pointing out the growth cycles in different sectors of the economy, the management of Bandhan Mutual Fund has said that the vital infrastructure sector is on an expansion phase in India. Between 2025 and 2030, the capital expenditure of the Centre will accelerate. Gross fixed capital formation of the private sector will also rise fast in this time window. The Nifty infrastructure index has risen steeply in the past 4 years.
The authorities have also mentioned about the growth phase through which the real estate sector is passing through.
Bandhan Mutual Fund was established in 2000. It claims to be among the country’s top 10 fund houses according to AUM (Asset Under Management). It has various types of mutual fund schemes in its stable across equity, debt, hybrid, ETFs (Exchange Traded Fund), FoFs (Fund of Funds) categories.
It is desirable that investors should consult investment advisors before putting in their hard-earned money in any market-related instrument.
(Disclaimer: This article is only meant to provide information. News9live.com does not recommend buying or selling shares or subscriptions of any IPO and Mutual Funds.)
The NFO of this thematic fund opened on September 10 and will remain open till September 24, 2024. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
