ICICI Prudential Mutual Fund has launched a open-ended equity scheme Business Cycle Fund, which will invest in equity and equity-related securities, with a focus on riding business cycles through dynamic allocation across sectors and stocks.

The New Fund Offer opens on December 29 and closes on January 12.

The fund will follow a top down approach right from monitoring macro indicators (global and domestic), identifying business cycle followed by determining suitable sectors, and selecting the stocks within these sectors.

An ongoing business cycle may extend or shorten depending on the macroeconomic conditions and the fiscal and monetary policy response by the government and central banks during a business cycle. Such times can often provide appropriate opportunities for investment.

Nimesh Shah, Managing Director, ICICI Prudential AMC, said a typical business cycle have four distinct phases of growth, recession, slump and recovery. While each phase is different, an investment approach, which identifies and analyses key phases in the economy, could help generate a positive investment experience.

By investing in the new offer, investors can gain access to appealing sectors at any particular point in time. It will further aim to achieve diversification within those sectors, he said. The benchmark of the scheme is Nifty 500 TRI.

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