Bandhan Business Cycle Fund - Direct Plan
An open-ended equity scheme following a business cycle based investing theme.
Bandhan Business Cycle Fund, a thematic portfolio investing in sectors in accordance with the current business cycle
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What Is a Business Cycle Fund in India?
A business cycle fund is an open-ended, thematic scheme that invests in equity and equity-related securities, dynamically allocating between sectors and stocks based on the business cycle's phases—expansion, peak, contraction, and slump. Each phase impacts sectors differently, and business cycle funds aim to identify wealth creation opportunities while managing risk effectively.
The Bandhan Business Cycle Fund must invest at least 80% of its assets in equities and equity-related instruments. The fund adjusts asset allocation based on the economic cycle, targeting sectors that benefit from current conditions.
With a 360-degree investment approach, business cycle funds diversify across sectors like finance, real estate, defence, and consumer products. They also diversify across market capitalisations, which may reduce risk and offer investors potential benefits from the performance of different sectors.
The Bandhan Business Cycle Fund also focuses on sector-specific drivers like demand, supply, and profitability. It combines top-down macroeconomic analysis with bottom-up stock selection, aiming to create wealth through various economic cycles. As a result, business cycle mutual funds are a suitable long-term investment option.
The Bandhan Business Cycle Fund is a thematic equity scheme. It follows standard equity fund taxation: units held for more than a year are taxed at 10% for gains above ₹1 lakh, while units held for less than a year are taxed at 15% under STCG.
- Min Investment 1,000
- Min SIP Amount 100
- Exit Load0.50%
• If redeemed/switched out on/within 30 days from the date of allotment - 0.5% of applicable NAV
• If redeemed/switched out after 30 days from the date of allotment – Nil
This scheme has not completed one year.
Tier 1 Benchmark : NIFTY 500 TRIAlternate Benchmark : Nifty 50 TRI
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This fund is managed by Mr. Vishal Biraia (w.e.f 30/09/2024), Ms. Ritika Behera (w.e.f 30/09/2024), Mr. Harshal Joshi (w.e.f 30/09/2024), Mr. Gaurav Satra (w.e.f 30/09/2024), Mr. Brijesh Shah (w.e.f 30/09/2024)
View fund performance of other funds managed by Mr. Vishal Biraia, Ms. Ritika Behera, Mr. Harshal Joshi, Mr. Gaurav Satra, Mr. Brijesh Shah
Past performance may or may not be sustained in future.
Regular and Direct Plans have different expense structure. Direct Plan shall have a lower expense ratio excluding distribution expenses, commission expenses etc.
Taxation:
For taxation, please refer the link : https://bit.ly/46xQzi1
Bandhan Business Cycle Fund
(Scheme Risk-o-meter)
NIFTY 500 TRI
(Tier 1 Benchmark Risk-o-meter)
This product is suitable for investors who are seeking*:
• To create wealth over a long term.
• Investment predominantly in equity and equity related instruments of companies following business cycle based investment theme.
Who Should Invest in Bandhan Business Cycle Fund?
The Bandhan Business Cycle Fund invests mainly in equities, making it vulnerable to market volatility and fluctuations. It is a high-risk investment focused on long-term wealth creation through dynamic asset allocation. Investors with a high-risk appetite seeking long-term gains may find this fund suitable.
The Bandhan Business Cycle Fund diversifies across small, mid, and large-cap stocks based on the business cycle, potentially spreading risk, and benefiting from multiple sectors. Investors seeking a diversified, long-term investment may find this fund appealing.
Investors interested in a thematic equity scheme based on business cycles may benefit from the Bandhan Business Cycle Fund.
FAQs on Business Cycle Fund
What are the different phases of a business cycle fund?
A business cycle fund’s investment strategy is based on economic cycles.
There are four main economic cycles:
● Expansion: rising economic activity
● Peak: maximum growth
● Contraction: declining growth
● Slump: the lowest point of the cycle
Are business cycle fund returns high in India?
Business cycle funds aim to generate wealth for investors in the long run by investing in equities. However, as an equity fund, the scheme may be vulnerable to market fluctuations and volatility. Mutual fund returns cannot be guaranteed and are always subject to market risks.
What does Bandhan Business Cycle Fund invest in?
Bandhan Business Cycle Fund is mandated to invest at least 80% of its corpus in equities and equity-related security. These equities may belong to various sectors and market caps.
Can you invest in Bandhan Business Cycle Fund through SIP?
Yes, Bandhan Business Cycle Fund has an option to invest through SIP. The minimum SIP investment amount is ₹100.
Does Bandhan Business Cycle Fund have a lock-in period?
No, Bandhan Business Cycle Fund does not have a lock-in period. Investors can withdraw their investments whenever required.
Do business cycle funds in India invest in debt instruments?
Business cycle mutual funds are not mandated to invest in debt instruments. However, for diversification, the fund may invest up to 20% of its corpus in debt securities.
Why are business cycle mutual funds a long-term investment?
Business cycle funds aim to capitalise on economic cycles, i.e. expansions, peaks, contractions, and slumps. Economic cycles can span over several years; to potentially benefit from different phases of the business cycle, investors must have a long investment horizon.