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    Tata Business Cycle Fund - NFO Brochure

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    awenew
    This document summarizes a new mutual fund called the Tata Business Cycle Fund that aims to generate long-term capital appreciation by investing according to different phases of the business cycle. The fund will focus on cyclical stocks during economic expansions and defensive stocks during contractions. It will adjust sector and stock allocations depending on whether the economy is in a growth or slowdown phase. The minimum investment amount is Rs. 5,000 with additional purchases of Rs. 1,000. An exit load of 1% applies for redemptions within 365 days.

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    Tata Business Cycle Fund - NFO Brochure

    Uploaded by

    awenew
    116 views4 pages
    This document summarizes a new mutual fund called the Tata Business Cycle Fund that aims to generate long-term capital appreciation by investing according to different phases of the business cycle. The fund will focus on cyclical stocks during economic expansions and defensive stocks during contractions. It will adjust sector and stock allocations depending on whether the economy is in a growth or slowdown phase. The minimum investment amount is Rs. 5,000 with additional purchases of Rs. 1,000. An exit load of 1% applies for redemptions within 365 days.

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    This document summarizes a new mutual fund called the Tata Business Cycle Fund that aims to generate long-term capital appreciation by investing according to different phases of the business cycle. The fund will focus on cyclical stocks during economic expansions and defensive stocks during contractions. It will adjust sector and stock allocations depending on whether the economy is in a growth or slowdown phase. The minimum investment amount is Rs. 5,000 with additional purchases of Rs. 1,000. An exit load of 1% applies for redemptions within 365 days.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    116 views4 pages

    Tata Business Cycle Fund - NFO Brochure

    Uploaded by

    awenew
    This document summarizes a new mutual fund called the Tata Business Cycle Fund that aims to generate long-term capital appreciation by investing according to different phases of the business cycle. The fund will focus on cyclical stocks during economic expansions and defensive stocks during contractions. It will adjust sector and stock allocations depending on whether the economy is in a growth or slowdown phase. The minimum investment amount is Rs. 5,000 with additional purchases of Rs. 1,000. An exit load of 1% applies for redemptions within 365 days.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    Aims to weather it all

    NFO OPENS : 16TH JULY, 2021


    NFO CLOSES : 30TH JULY, 2021

    Business Cycles
    The economy goes through a series of stages as it expands and contracts, characterised by downward or upward
    fluctuations of GDP.

    Periods of growth result in business activity rising, where businesses innovate, produce new products, create jobs and
    invest in further growth. At the peak of the expansion phase, businesses are using their full capacity, and soon
    continued innovation and investments have lower impact.

    Periods of slowdown give businesses the opportunity to reorganise their operations and rebuild for future growth.
    Businesses cut down on products and capacity and follow a more focused approach in their day to day functioning. At
    the trough of the slowdown phase, these renewed business models give rise to increased capacity and innovation

    Each
    Economic
    Cycle/
    Business Cycle
    has 4 phases

    This product is suitable for investors who are seeking*:


    • Long Term Capital Appreciation.
    • An equity scheme that invests predominantly in Indian markets with focus on riding business
    cycles through dynamic allocation between various sectors and stocks at different stages of
    business cycles.
    RISK - O - METER
    * Investors should consult their financial advisors if in doubt about whether the product is
    suitable for them. Investors understand that their principal
    will be at Very High Risk

    Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
    Business Cycles Investing

    The returns investors achieve on their investments are driven in large part by changes in the business cycle. Each phase
    in the business cycle presents unique investment opportunities. So, incorporating business cycles theme into
    investments helps make the most of the current economic environment

    During a phase of recovery and expansion, Investments that are more sensitive to faster economic growth and business
    activity are likely outperform. There are generally referred to as cyclical stocks. These include

    • Stocks of midsize and small companies, as well as emerging market equities

    • Younger, growth-oriented firms and industries

    During a phase of slowdown and recession, Defensive investments and those that are sensitive to falling interest rates
    have greater potential to outperform. There are generally referred to as defensive stocks. These include

    • Stocks of larger and stable companies

    • Businesses that experience steady consumer demand even during economic slowdowns

    Investing in different phases

    Sectors /industries mentioned above is for illustration purpose only and it may or may not form part of actual portfolio of Tata Business Cycle Fund.
    Theoretically these sectors/segments are expected to perform well, actual performance may be impacted by other external factors and may not align
    with the above representation
    Why now?
    SHORTER BUSINESS IMPACT OF SECTOR MARKET CONDITIONS
    CYCLES ALLOCATIONS

    A fund that adapts to


    changes is needed
    Over the last few years, because:
    With the dura on of
    the impact of sector
    business cycles
    alloca ons has been • Markets are at fair
    shortened, the need for a
    greater on alpha valua ons
    fund that changes with
    genera on versus stock
    change in cycle has arisen
    level alloca ons. • M a c ro c h a l l e n ge s
    posed by infla on and
    bond yields going up.

    Tata Business Cycle Fund

    Aim

    To deploy the business cycle approach to investing to identify economic trends and invest in sectors and
    stocks that are likely to outperform

    Economic Trends

    Investing as per the economic conditions – Cyclicals during Expansion and Defensives during Contraction

    Focus on Sector Calls

    Expansion Contraction

    Buy either the sector leaders or Companies benefitting Invest in companies from sectors which
    disproportionately from the sectoral tailwinds provide cushion during downcycles
    during economic & business cycles

    Stock Selection

    Extent of leverage to the cycle Market cap agnostic Management record


    Fund Characteristics

    The size of the por olio will The churn in the por olio will
    vary depending on the cycle. In depend on how quickly the
    a contrac onary cycle, we may cycles are turning. Sudden
    have more stocks compared to upswings or downswings may
    an expansionary cycle cause higher churn

    Sector Alloca on Market Cap Alloca on


    Por olio Size Por olio Churn

    The business cycle theme may With no constraint on market


    allow for a more aggressive cap alloca on, the split will be
    stance in terms of sector purely based on the business
    over/under weight compared to cycle phase, with focus on
    other diversified funds segments most likely to do well

    FUND DETAILS
    Scheme Name Tata Business Cycle Fund

    NFO Date NFO Opens: 16th July 2021 • NFO Closes: 30th July 2021

    Investment Objective To generate long-term capital appreciation by investing with focus on riding
    business cycles through allocation between sectors and stocks at different stages
    of business cycles.
    However, there is no assurance or guarantee that the investment objective of the
    Scheme will be achieved. The scheme does not assure or guarantee any returns.

    Type of Scheme An open-ended equity scheme following business cycles based investing theme.

    Fund Manager Rahul Singh, Venkat Samala (Overseas Investment) and Murthy Nagarajan (Debt
    Portfolio)

    Benchmark Nifty 500 TRI

    Min. Investment Amount Minimum subscription amount: Rs 5,000/- and in multiple of Re.1/- thereafter.
    Additional Purchase: Rs.1000/-& in multiples of Re.1/-threafter.

    Load Structure Entry Load: N.A.


    Exit Load: Redemption/Switch-out/SWP/STP on or before expiry of 365 days from
    the date of allotment: If the withdrawal amount or switched out amount is not
    more than 12% of the original cost of investment-NIL
    Redemption/Switch-out/SWP/STP on or before expiry of 365 days from the date of
    allotment: If the withdrawal amount or switched out amount is more than 12% of
    the original cost of investment-1% of applicable NAV
    Redemption/Switch-out/SWP/STP after expiry of 365 days from the date of
    allotment-NIL

    Distributed by:

    Call: 022 - 6282 7777 (Monday to Saturday 9:00 am to 5:30 pm)


    www.tatamutualfund.com

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