HDFC Mutual Fund has come up with a New Fund Offer (NFO)—HDFC Business Cycle Fund, an open-ended thematic fund. The fund endeavours to capitalize on upswings in business cycles and focus on reasonably valued companies presenting high earning potential.
A snapshot of HDFC Business Cycle Fund
NFO period: November 11, 2022 — November 25, 2022.
Type of scheme: Thematic
Theme focus: Cyclical companies having growth tailwinds
Portfolio management style: Dynamic (i.e. depending on market conditions, the fund may frequently churn its holdings)
Benchmark: Nifty 500 Total Return Index (TRI)
Indicative asset allocation to the core theme: Minimum 80%
Exit loads: 1% on switch-out/redemption within a year; nil thereafter
Minimum investment amount: Rs 100
Specific market cap bias: No bias. Will invest across large, mid and small caps
Fund Suitability: Aggressive investors having high risk appetite
Fund Manager: Rahul Baijal (total experience, 20 years)
To invest in HDFC Business Cycle Fund NFO you can simply log in to your Ventura account or you can write to us at firstname.lastname@example.org for any further assistance.
Don’t have a demat account with Ventura yet? Click here to open one and start investing.
Haven’t decided whether or not to invest in HDFC Business Cycle Fund NFO yet? Here’s a market snapshot for your reference.
Let’s address the most basic question, are green shoots visible?
Capacity utilisation of Indian manufacturing companies has surged significantly from the pandemic lows. It’s an important indicator to gauge how robust the fresh capex cycle could be.
Capacity utilisation levels of manufacturing companies
Banks are said to be the pancreas of an economy. The health of the banking sector and pace of its activities can be a strong indicator of the overall economic health of a country. Similarly, capex plans of cement companies, order book positions of infra and construction companies can have crucial hints as well.
What does the situation at the grassroots look like?
If you add to the above the list of government capex, including that of Indian Railways and PSU capex, India’s growth story appears more promising.
Connecting the dots…
All important indicators hint at a business upcycle. They include:
While these factors present an overall optimistic picture for the scheme’s performance. The million dollar question now, is how much of this will translate into bottom line growth for India Inc? The success of any business cycle fund will entirely depend on this.
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