Kolkata : Aditya Birla Sun Life AMC Limited, a subsidiary of Aditya Birla Capital Limited (a significant non-bank financial services conglomerate), and investment manager to Aditya Birla Sun Life Mutual Fund (ABSLMF) has announced the launch of 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.
Business cycle is a critical determinant of equity sectors performance over time periods. Shift from one stage of the business cycle to the next often leads to sector rotation with different sectors assuming performance leadership in different economic phases. A ‘business cycle’ is typically defined as periods of expansion and contraction in economic activity. It is divided into four phases – expansion, peak, contraction and slump, and all four stages have a cascading impact on the markets. The length and dynamics of each phase vary based on a range of factors such as regulatory, policies, reforms, geopolitics, domestic or global events, among other things. On the other hand, each industry’s dynamics can also play out differently during a business cycle. So, an industry-specific cycle could differ from the stage of an ongoing cycle in the economy.
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