What Is a Business Cycle Fund? How It Offers Long-Term Financial Benefits – News18

Investment refers to the distribution or allocation of money, with the hope of deriving benefits in the future. All over the world, people make various types of investments, ranging from properties, gold, equity, mutual funds, and more. People invest with the aim that the amount they are putting in now will yield better returns in the future. One such safe and profitable fund, where investments can be made, is the business cycle fund. There is a dynamic allocation of funds into various sectors and stocks with this investment so that there are good returns even if the market is down. Mahinda Manulife Mutual Fund has introduced its New Fund Offer, which gives the option of allocating business cycle funds.

The new fund offer by Mahinda Manulife Mutual Fund started on August 21 and will end on September 4. It is an open-ended equity scheme that works on a business-cycle fund-based investment. The main objective of the scheme is to focus on companies and sectors that participate in the business cycle, and allocations of funds are made in those sectors. This scheme is for those investors who seek capital appreciation in the long term by investing in equity and related securities.

According to financial experts, just like the cycle of weather, there is a cycle of business as well. Sometimes the market goes up, and sometimes it goes down. Even when the market is down, certain businesses still flourish at that time, like the infrastructure sector and banking sector. Business cycle funds allocate the funds to the user, according to changes in the market.

The Mahindra Manulife Mutual Fund scheme will be managed by Chief Investment Officers, Krishna Sanghvi and Renjith Sivaram. Krishna Sanghvi said in an interview, “The economy of the country is going through a bit of a challenge right now, but there are many sectors in the market that can give better returns at this time. Companies in sectors like medicine and infrastructure can grow fast now. This fund identifies such business opportunities and invests money in companies associated with them. Its objective is to provide better returns to its investors without being affected by the ups and downs of the market.”