NEW DELHI: HDFC Mutual fund’s new fund offering -- HDFC Business Cycle Fund – comes with the mandate to invest in a business that is likely on the cusp of favourable business cycles. The new fund offer is open for subscription and closes on 25 November.
The fund will follow a blend of top-down and bottom-up approaches. As part of its top-down approach, the fund will track both macro indicators such as economic growth, and inflation, etc and business-specific indicators, such as outlook on growth, change in bargaining power, the threat of substitutes in the business, etc.
Its bottom-up approach lays emphasis on finding companies that are best placed to see earnings growth in the business upcycle, and most attractively valued relative to the quality of management, business model and financial metrics. The fund will have adequate diversification across sectors and sub sectors.