Aditya Birla Sun Life Business Cycle Fund NFO

 

Introduction

• Every economy goes through growth phases - periods of rising growth, that begins to decline after a peak; only to rise again from a bottom slump.
• This ‘expansion’ and ‘contraction’ is cyclical. Each phase favours growth in different sectors and opens different cyclical opportunities. (For example – the pandemic opened up tremendous opportunities in the healthcare and IT sector)
• This calls for a unique investing style – ‘Business cycle-based investing’

Presenting Aditya Birla Sun Life Business Cycle Fund

• An open-ended equity scheme following business cycles-based investing theme.
• This scheme seeks to identify upcoming cyclical opportunities by estimating:
• The changes in cyclical phase of the economy
• Favorable sectors and opportunities based on the specific economic phase
• To ultimately build a portfolio of industry leaders within these identified opportunities
• The key focus is to apply fund manager expertise to pre-empt these cyclical phases and identify these opportunities before they present themselves

 Why should you invest in this fund?

• Make your portfolio conscious of business cycles Different cyclical phases tend to favour different sectors – in a contraction phase for example defensive sectors such as consumer staples and healthcare that are essential tend to outperform; whereas in an expansion phase, opportunities open up in other non-defensive sectors that have discretionary demand.
  By focusing on identifying these opportunities in advance, this fund has the potential for growth through all business cycles.
• By focusing on identifying these opportunities in advance, this fund has the potential for growth through all business cycles.
• Get a ‘first mover’ advantage through fund manager expertise Expert fund managers seek to pre-empt cyclical changes and opportunities in finding industry leaders to maximise potential of growth for investors
• Flexibility giving diversification Can invest across all market sectors, themes and market caps.
• Global exposure as well The fund also has the flexibility to invest in select and favourable global opportunities, giving you the potential exposure to global markets as well
• Potential for long term capital appreciation Being an equity fund it has the potential for long term capital growth

 

Features & Asset Allocation

Scheme Name	Aditya Birla Sun Life Business Cycle Fund
Fund Manager	Mr. Vineet Maloo; Mr. Nitesh Jain, Mr. Vinod Bhat (for overseas investment)
Scheme Type	An open ended equity scheme following business cycles based investing theme
Investment Objective	The investment objective of the scheme is to provide long term capital appreciation by investing predominantly in equity and equity related securities with a focus on riding business cycles through dynamic allocation between various sectors and stocks at different stages of business cycles in the economy. The Scheme does not guarantee/indicate any returns. There can be no assurance that the objective of the Scheme will be achieved.
Scheme Benchmark	S&P BSE 500 Total Return Index (TRI)
Asset Allocation	Equity & Equity related instruments selected on the basis of business cycle: 80% -100%; Other Equity & Equity related instruments: 0% -20%; Debt and Money Market Instruments: 0-20%; Units issued by REITs & InvITs: 0% -10%
Plans & Options	Regular Plan and Direct Plan; Both plans will have two options: Growth and Income Distribution cum capital withdrawal (IDCW).IDCW option will have Payout Facility
Entry & Exit Load	Entry Load : NIL; | Exit Load : 1% of the applicable NAV, if redeemed/switched out on or before expiry of 365 days from the date of allotment
NFO Open Date	15thNovember 2021
NFO Close Date	29thNovember 2021

 This product is suitable for investors who are seeking*:

•  Long term capital appreciation
• An equity scheme investing in Indian equity & equity related securities with focus on riding business cycles through dynamic allocation between various sectors and stocks at different stages of business cycles in the economy