Business Cycles: The economy goes through a series of stages as it expands and contracts, characterized by downward or upward fluctuations of GDP.Periods of growth result in business activity rising, where businesses innovate, produce new products, create jobs and invest in further growth. At the peak of the expansion phase, businesses are using their full capacity, and soon continued innovation and investments have lower impact.
Periods of slowdown give businesses the opportunity to reorganize their operations and rebuild for future growth.
Businesses cut down on products and capacity and follow a more focused approach in their day to day functioning. At the trough of the slowdown phase, these renewed business models give rise to increased capacity and innovation.
Business Cycles Investing:
The returns investors achieve on their investments are driven in large part by changes in the business cycle. Each phase in the business cycle presents unique investment opportunities. So, incorporating business cycles theme into investments helps make the most of the current economic environment.
During a phase of recovery and expansion, Investments that are more sensitive to faster economic growth and business activity are likely outperform. There are generally referred to as cyclical stocks. These include:
- Stocks of midsize and small companies, as well as emerging market equities
- Younger, growth-oriented firms and industries
During a phase of slowdown and recession, Defensive investments and those that are sensitive to falling interest rates
have greater potential to outperform. There are generally referred to as defensive stocks. These include
- Stocks of larger and stable companies
- Businesses that experience steady consumer demand even during economic slowdowns
Investment Objective: To generate long-term capital appreciation by investing with focus on riding business cycles through allocation between sectors and stocks at different stages
of business cycles. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved. The scheme does not assure or guarantee any returns.
NFO Date NFO Opens: 16th July 2021 • NFO Closes: 30th July 2021
Min. Investment Amount: Minimum subscription amount: Rs 5,000/- and in multiple of Re.1/- thereafter Additional Purchase: Rs.1000/-& in multiples of Re.1/-threafter.
Load Structure: Entry Load: N.A.
Exit Load: Redemption/Switch-out/SWP/STP on or before expiry of 365 days from
the date of allotment: If the withdrawal amount or switched out amount is not
more than 12% of the original cost of investment-NIL
Redemption/Switch-out/SWP/STP on or before expiry of 365 days from the date of
allotment: If the withdrawal amount or switched out amount is more than 12% of
the original cost of investment-1% of applicable NAV
Redemption/Switch-out/SWP/STP after expiry of 365 days from the date of
allotment-NIL
This product is suitable for investors who are seeking*:
• Long Term Capital Appreciation.
• An equity scheme that invests predominantly in Indian markets with focus on riding business
cycles through dynamic allocation between various sectors and stocks at different stages of
business cycles.
To open dmat and trading account in Angel broking, use below link
https://tinyurl.com/k79bdf4z
NFO, investment in etf how to select a good etf mutual fund IPO
