NFO Update: Aditya Birla Sun Life Business Cycle Fund

The New Fund Offer (NFO) opens for subscription on November 15, 2021, and closes on November 29, 2021.

Aditya Birla Sun Life AMC, one of the top five asset managers in India has come out with its new fund offer. The fund house has launched Aditya Birla Sun Life Business Cycle Fund. It is an open-ended equity scheme that follows a business-cycle-based investing theme. The New Fund Offer (NFO) opens for subscription on November 15, 2021, and closes on November 29, 2021. The performance of the scheme will be benchmarked against S&P BSE 500 Total Return Index (TRI). 

 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. 

Strategy: The fund will invest across sectors and market cap. To select stocks fund manager will apply a top-down approach to identify and ascertain the stage of the business cycle based on core economic indicators like PMI, IIP, credit growth, interest rates (Repo rate/Short term yields), corporate bond issuances and other high-frequency indicators will be closely monitored. The portfolio will be segregated between defensives and non-defensive sectors. This is because defensive sectors usually have stable earnings irrespective of the stage of the business cycle; while for non-defensive sectors earnings vary with the stage of the business cycle. Stock selection will follow the Growth at Reasonable Price (GARP) philosophy. 

Fund Manager: The new scheme will be jointly managed by Vineet Maloo, Nitesh Jain, Vinod Bhat (for overseas investment).