The new fund offer or NFO of the scheme is open for subscription and will close on August 23.
The fund aims to identify and invest in sectors and companies that are at the cusp of entering expansionary phase or are already in a long term expansionary phase. The fund will follow a dynamic top-down approach for portfolio construction.
It aims to allocate 80–100% of its assets in equity and equity-related instruments selected on the basis of business cycle concept, 0–20% in debt and money market instruments, and 0- 10% in units issued by REITs and InvITs.
“Macro factors and mega trends lead to the unfolding of significant growth themes with varying impacts on Business Cycles, across sectors & businesses. Our new scheme endeavours to majorly use a Top-Down approach to identify and invest across a focused set of growth themes impacted positively by macro factors and mega-trends. With a market cap / sector agnostic approach, our endeavour will be to analyse the complete spectrum of businesses impacted by these growth themes and invest across sectors and companies that we feel are likely to benefit significantly, over the medium to long term from such growth themes,” said Alok Singh, CIO, Bank of India Investment Managers Private Limited.
“At Bank of India Mutual Fund our endeavour has been to build up new product constructs on sustainable investment themes, and the Business Cycle Fund is a step in that direction. The fund aims to invest across a spectrum of businesses and sectors that we feel are likely to see 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 MF products that are more diversified than a single sector fund and those investors who are keen to have equity exposure across a focused set of sectors and themes likely to benefit from larger trends and macro-factors impacting the business environment,” said Mohit Bhatia, CEO, Bank of India Investment Managers Private Limited.The scheme is suitable for investors who are seeking long-term capital appreciation and want investment in equity and equity related instruments with a focus of navigating business cycles through dynamic allocation between various sectors and stocks at different stages of business cycles in the economy.