Aditya Birla Sun Life Mutual Fund has announced the launch of Aditya Birla Sun Life Business Cycle Fund, this is a open ended equity scheme that follows a business-cycle-based Investment Subject.

The New Fund Offer opens for subscription on November 15 and closes on November 29.

The benchmark index of the scheme is S&P BSE 500 Total Return Index (TRI), which covers all major industries of the Indian economy.

According to a press release, the scheme will position the portfolio based on the expected phase of the business cycle.

Since investors may not be able to identify the phases of economic and sectoral cycles and make the transition accordingly, a scheme like Aditya Birla Sun Life Business Cycle Fund may be the one. Investment The vehicle to take advantage of investment opportunities is associated with the changing phases of a business cycle, the fund house said.

“The economy, from time to time, goes through phases of expansion and contraction. Research shows that sectors through the business cycle stages do not provide systematic performance. Defensive sectors such as FMCG, Healthcare and IT provide better returns through the contraction phase while non-defensive sectors such as metals, financials and cement provide better returns during the expansion phase,” said A Balasubramaniam, MD & CEO, Aditya Birla Sun Life AMC, told.

Balasubramaniam said, “With no regional and market cap bias, Aditya Birla Sun Life Business Cycle Fund will actively identify investment opportunities and manage allocation through various business cycles to generate returns.”