12. According the press release, the scheme aims to provide long term wealth creation by investing in equity and equity related securities with focus on riding business cycles through dynamic allocation between various sectors and stocks.
ICICI Prudential Business Cycle Fund will follow a top down approach right from monitoring macro indicators (global and domestic), identifying business cycle followed by determining suitable theme/sectors and selecting the stocks within these theme/sectors.
An ongoing business cycle may extend or shorten depending on the macroeconomic conditions and the fiscal and monetary policy response by the government and central banks during a business cycle. Such times can often provide appropriate opportunities for investment.
Speaking on the launch of the product, Mr. Nimesh Shah, MD & CEO, ICICI Prudential AMC said, “Stock market sector returns generally are affected by the various business cycle phases. A typical business cycle will have 4 distinct phases viz., Growth, Recession, Slump & Recovery. While each phase is different,
an investment approach which identifies and analyses key phases in the economy could help generate a positive investment experience. ICICI Prudential Business Cycle Fund offers a different style which focuses on macros. By investing, investors can gain access to appealing sectors at any particular point in time. It will further aim to achieve diversification within those sectors.”
ICICI Prudential Mutual Fund has one of India’s largest and experienced investment team led by S Naren, who is well known for his calls on macros and market cycles. The scheme will be managed by Anish Tawakley, Ihab Dalwai and Manish Banthia. The benchmark of the scheme is Nifty 500 TRI.