Kotak Mutual Fund launches Kotak Business Cycle Fund

Kotak Mutual Fund has launched Kotak Business Cycle Fund, an openended scheme following business cycles based on investing themes. The fund would invest in stocks and sectors of the companies that can navigate through various economic cycles. 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.

Investors can invest a minimum amount of Rs 5,000 during the NFO period. The fund will be managed by Pankaj Tibrewal and Abhishek Bisen.

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.) while picking stocks.

Speaking at the launch of the fund, Nilesh Shah, Group President and Managing Director, Kotak Mahindra Asset Management, 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 parameter.”