Kotak Business Cycle Fund: new fund offering dates, benefits, should you invest?

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Kotak Mahindra Asset Management Company Ltd (Kotak Mutual Fund) has announced the launch of the Kotak Business Cycle Fund, which is an open-ended program following the investment theme based on business cycles. The fund would invest in stocks and business sectors that can weather economic cycles.

The New Fund Offering (NFO) will be opened for public subscription on September 7, 2022 and will close on September 21, 2022. Investors can invest a minimum amount of Rs 5,000 during the NFO period.

In a statement, Kotal Mutual Funds said the term “business cycle” refers to various stages in which a specific business or industry experiences a period of expansion, moderation and contraction in activity.

Also Read: These Small Cap Equity Mutual Funds Returned Up to 22% in 5 Years

“The Kotak Business Cycle Fund will take into account various economic parameters (GDP growth, current account deficit, corporate earnings growth trend, inflation, etc.), investment indicators (CAPEX investment, capacity utilization , credit growth, etc.), companies and major economic indicators (Business Confidence Index, PMI, etc.) before committing any investment,” the statement said.

Commenting on the NFO, Nilesh Shah, Group Chairman and Managing Director of Kotak Mutual Fund said, “The Kotak Business Cycle Fund provides a good opportunity for investors to diversify their stock portfolio as there are stocks in all categories, who tend to do better at various stages of the business cycle. Even during tough times of economic downturn, these companies have managed to weather the challenges and perform well in various economic settings.

Also read: This mutual fund has gone from Rs 10,000 to Rs 1.54 lakh since inception

Should you invest in the Kotak Business Cycle Fund?

The Kotak Business Cycle Fund may be suitable for investors seeking long-term capital growth through “investment in a portfolio consisting primarily of equity and equity-related securities of companies with a focus on riding economic cycles through dynamic allocation between various sectors and stocks at different levels. stages of business cycles in the economy.

However, there is no guarantee that the objectives of the program will be achieved. Investments in mutual funds are also subject to market risks. Investors should therefore consult their financial advisers if in doubt as to whether the product is suitable for them.

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