The scheme’s new fund offer or NFO is open for subscription and will close on August 23.
The fund aims to identify and invest in sectors and companies that are about to enter an expansion phase or are already in a long-term expansion phase. The fund will follow a dynamic top-down approach to portfolio construction.
It aims to allocate 80-100% of its assets in selected equity and equity-related instruments based on business cycle concept, 0-20% in debt and money market instruments, and 0-10% in units issued by REITs and InvITs.
“Macro factors and megatrends give rise to the development of important growth themes with varying impacts on economic cycles, across sectors and companies. Our new plan aims to use primarily a top-down approach to identify and invest in a specific set of growth themes that are positively impacted by macro factors and megatrends. Using a market-cap and sector-agnostic approach, we will aim to analyze the full spectrum of companies impacted by these growth themes and invest across sectors and companies that we believe are likely to benefit significantly, over the medium to long term, from such growth themes,” he said. Alok SinghChief Investment Officer, Bank of India Investment Managers Private Limited.
“At Bank of India Mutual Fund we have been striving to develop new products based on sustainable investment themes, and the Business Cycle Fund is a step in that direction. The fund aims to invest in a spectrum of companies and sectors that we believe are likely to experience an expansionary phase in their business cycle over the medium to long term. The scheme may be suitable for investors with a high risk appetite who are evaluating mutual fund products that are more diversified than a single sector fund and for those investors who are interested in having equity exposure in a specific set of sectors and themes that are likely to benefit from the broader trends and macroeconomic factors affecting the business environment,” said Mohit Bhatia, CEO, Bank of India Investment Managers Private Limited. The scheme is suitable for investors who are looking for long-term capital appreciation and want to invest in stocks and equity-related instruments with an aim to navigate business cycles through dynamic allocation across various sectors and stocks at different stages of business cycles of the economy.
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