DSP Mutual Fund To Launch DSP Business Cycle Fund

The DSP Business Cycle Fund offers an attractive chance for individuals wishing to align their investments with broader economic trends. Nonetheless, prospective investors ought to evaluate their risk appetite and seek guidance from financial advisors prior to making any commitments. This equity thematic fund aims to achieve long-term capital growth by actively adjusting its investments in response to current economic conditions.

All about the DSP Business Cycle Fund

DSP Mutual Fund is preparing to introduce its newest product, the DSP Business Cycle Fund, with a New Fund Offer (NFO) that will open on November 27, 2024, and close on December 11, 2024. This fund adopts a thematic strategy, concentrating on capitalizing on business cycle trends to enhance returns for investors.

Objective of fund

The fund seeks to achieve long-term capital growth by strategically allocating investments across various sectors and stocks according to different stages of the business cycle, including expansion and contraction. This approach emphasizes sectors expected to grow while reducing exposure to those experiencing downturns.

Key Features of the DSP Business Cycle Fund

The fund operates as an open-ended structure, permitting investors the flexibility to join or withdraw as they choose, starting with a minimum investment of ₹100. For redemptions occurring within 10 months of the initial investment, there is an exit fee of 0.5%. This fund aims to track the performance of the Nifty 500 Total Return Index (TRI) and is rated as “very high” on the riskometer, making it suitable for investors who are willing to take on significant risk.

The investment strategy of the fund utilizes macroeconomic indicators, including GDP growth, inflation rates, corporate earnings, and interest rate trends. This flexible approach allows the fund to seize long-term economic shifts while also taking advantage of immediate market opportunities. Charanjit Singh, an experienced fund manager with backgrounds in sectors such as capital goods, power, and infrastructure, will manage the fund’s operations.

Long-term return

This strategy is designed for long-term investors aiming to diversify their portfolios by navigating through economic cycles. By strategically targeting sectors projected to flourish during certain stages of the business cycle, the fund presents a distinctive chance for those prepared to accept market risks in pursuit of potentially greater returns.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.