DSP Mutual Fund has unveiled the DSP Business Cycle Fund, a new open-ended equity fund aimed at providing investors with a unique opportunity to capitalize on business cycles. The fund allows for dynamic allocation to sectors and industries that show strong growth potential, improving fundamentals, and attractive valuations.
Designed to cater to various market capitalizations, including large, mid, and small cap companies, the fund will follow a framework-driven approach, focusing on industries at different stages of the business cycle. The strategy allows for active allocation to sectors during upcycles while managing risks through cash calls, portfolio hedging, and leveraging forensic analysts to ensure companies with poor corporate governance are excluded.
“The ability to time entry and exit into themes is crucial but challenging for investors. DSP Business Cycle Fund aims to provide a systematic strategy to navigate market cycles while managing risks effectively,” said Charanjit Singh, Fund Manager at DSP Mutual Fund. The New Fund Offer (NFO) for the DSP Business Cycle Fund will open on November 27, 2024, and close on December 11, 2024. In Guwahati, a growing hub for financial products, is expected to respond positively to this unique offering, with investors seeking to diversify portfolios and tap into sectors with high growth potential. The fund’s focus on dynamic allocation may appeal to local investors looking for flexibility in their investment strategies.