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In this episode of, ‘Mutual Fund Corner’, Ashish Naik, Equity Fund Manager, Axis AMC and Ashwin Patni, Head Products & Alternatives at Axis AMC discuss business cycle funds, the key advantages of a business cycle fund and why it is good to have a fund like this in your portfolio.
In this episode of, ‘Mutual Fund Corner’, Ashish Naik, Equity Fund Manager, Axis AMC, and Ashwin Patni, Head Products & Alternatives at Axis AMC discussed about business cycle funds, their key advantages and why it is good to have a fund like this in the portfolio.
Naik said that if one can identify a business cycle there is obviously an investment opportunity. He said, “In terms of analyzing the business cycle means identifying several indicators and then building a coherent investment opinion."
He added, “A typical business cycle fund will try to identify the current phases of an economic cycle, narrowed down on which sectors can outperform in that phase, and then choose companies in those sectors.”
Naik stated that there are various sectors that can actually have their own sector cycles, which are different from the economic cycle and identifying them and investing them at the right point of time also becomes important to run this sort of fund.
Patni believes that there is no real good time or bad time for a business cycles funds.
He said, “Ultimately, all equity investments should be long-tem. But obviously, whatever time investors come in, one of the benefits they get is that the portfolio will keep sort of updating itself or refreshing itself with respect to whatever the current cyclical opportunities are.”
For full interview, watch accompanying video