Kotak Business Cycle Fund: New Fund Offer Dates, Benefits, Should you invest? | The Financial Express

Kotak Business Cycle Fund NFO: ‘Good opportunity to diversify equity portfolio’, says Nilesh Shah

Nilesh Shah, Group President and Managing Director, Kotak Mutual Fund says Kotak Business Cycle Fund provides a good opportunity for investors to diversify their equity portfolio

Kotak Business Cycle Fund NFO: ‘Good opportunity to diversify equity portfolio’, says Nilesh Shah
Check details of Kotak Business Cycle fund New Fund Offer.

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

The New Fund Offer (NFO) will open for public subscription on 7th September 2022 and closes on 21st September 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 where a company or a specific sector undergoes a period of expansion, moderation and contraction in the business.

Also Read: These small cap equity mutual funds returned up to 22% in 5 years

“Kotak Business Cycle Fund will take into account various economic parameters (GDP growth, current account deficit, corporate profit growth trend, inflation etc.), investment indicators (investment in CAPEX, capacity utilisation, credit growth, etc.), business and leading economic indicators (business confidence index, purchasing manager index, etc.) before committing any investment,” the statement said.

Commenting on the NFO, Nilesh Shah, Group President and Managing Director, Kotak Mutual Fund said, “Kotak Business Cycle Fund provides a good opportunity for investors to diversify their equity portfolio as there are equity stocks across categories, which tend to do better at various stages of the Business Cycle. Even during challenging times of economic slowdown, these companies have managed to navigate the challenges and perform well across various economic parameters.”

Also Read: This Mutual Fund turned Rs 10,000 to Rs 1.54 lakh since inception

Should you invest in Kotak Business Cycle Fund?

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

However, there is no guarantee that the scheme’s objectives will be met. Mutual Fund investments are also subject to market risks. Therefore investors should consult their financial advisers if in doubt about whether the product is suitable for them.

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