New NFO Alert: Invesco India Business Cycle Fund NFO Review
Are you searching for a new NFO for an investment fund but have found nothing reliable and trustworthy? If yes, the Invesco India Business Cycle fund NFO is for you. This new fund offer started its registration on 6th Feb and will close on 20th Feb 2025.
This blog will let you deep dive into this NFO and help you to answer all your questions. But before that, let's quickly understand this fund and what to focus on while investing.
Invesco India Business Cycle Fund NFO Details
Here are the basic NFO details to understand this newly launched fund offer in the business sector:
| Scheme Details | Information |
|---|---|
| Scheme Name | Invesco India Business Cycle Fund |
| Issue Date | 6th February 2025 |
| Issue Close Date | 20th February 2025 |
| Category | Business Cycle Mutual Fund |
| Benchmark | Nifty 500 TRI |
| Minimum Application Amount | Rs.500 |
| Fund Managers | Mr. Aditya Khemani & Mr. Amit Ganatra |
| Plans & Options | Regular and Direct Plans with Growth and IDCW Option |
Pro Tip: Get your hands on SIP Calculator and know your returns for free.
How Does a Business Cycle Fund Work?
The main objective of the new NFO is to generate long-term capital by investing through allocation between sectors and stocks at different stages of business. Newly launched NFO of this AMC is a combination of bottom and top-up stock selection processes. You can opt for SIP option in this mutual fund and gradually increase it. The main focus will be on diversification to manage the sector or any stock-specific risk.
Moving on, get ready to uncover the various types of investment approach that makes business cycle funds standout.
Investment Strategies for Invesco India Business Cycle Fund
Here are the investment strategies followed by Invesco India MF:
1. Business Cycle Approach
This latest NFO places its investments in companies that match the current phase of the cycle, like expansion, peak, contraction or recovery. The portfolio defines sectors and businesses that are likely to be successful in certain economic scenarios. They actively allocate investments across sectors based on values of GDP, inflation, interest rates and other credit cycles.
2. Company Lifecycle Approach
The Invesco Mutual Fund is an AMC that equally takes into account the stage of growth the company is in early growth, maturity and turnaround. It invests in companies that are in the process of maturing and taking advantage of long term economic shifts.
3. Growth Focused Strategy
Invests in the companies that derive growth from structural changes in the economy like Digital transformation, financial markets expansion and Manufacturing boom (Make in India) helps the Invesco India Business Cycle Fund to grow sustainably.
Let's find out the stock selection of this latest NFO and what process they use
Stock Selection Process Follows by Invesco India Business Cycle Fund
This business cycle mf focuses on companies in the pro-cyclical (up to 70%) phase and the counter-cyclical phase (30%). What is the difference between them? let's find outs
| Pro Cyclical (-70% of the Portfolio) | Counter Cyclic (-30% of the Portfolio) |
|---|---|
| The trailing 12 months of revenue growth are more than GDP growth and buying in a high-risk market and is expected to remain so going forward. | Trailing 12 months of revenue growth is slower than GDP but still has potential for recovery. |
| It prefers companies that are in their growth phase of the business cycle. | They avoid companies that are at the declining stage of the company lifecycle. |
After discussing the Stock selection process of this NFO, lets move forward to see why you are considering this fund.
Why Invest in Invesco India Business Cycle Fund
There are several reasons to invest in this New Fund Offer some of them are:
-
Investment Approach
The fund invests in companies based on cycles of business phases that ensure that the portfolio aligns with changing market conditions. -
Growth Focused Fund
It targets companies benefiting from structural changes in the economy and turnaround themes. -
Diversified Portfolio
Investments are spread across market capitalization, sectors and industries, thereby diversifying portfolios to manage risks.
Fund Manager of Invesco India Business Cycle Fund NFO
Now, you all might be wondering which people are behind this fund. Mr. Aditya Khemani and Mr. Amit Ganatra are the fund managers of the Invesco India business cycle they both have expertise in the financial market. Mr. Khamenei has 18 years of experience in the equity market. His last assignment before Invesco was Motilal Oswal Asset Management India Company.
On the other hand, Mr. Ganatra has 15 years of experience and joined this company 1 year ago. He has worked with HDFC Asset Management Company (AMC full form) as a fund manager.
However, many of you are still thinking that is it safe to invest in this fund, right? Lets find out.
Is it Safe to Invest in Invesco India Business Cycle Fund?
The Invesco India Business Cycle Fund is a market-linked equity fund, which means its performance depends on the trends prevailing in the stock market. As sector allocations dynamically shift based on business cycles, the fund inherently possesses a higher level of volatility than a traditional diversified equity fund.
Although this strategy offers great growth potential. It also creates sector rotation risk as the returns may vary only if the sector bets done by the fund manager do not generate returns. Therefore, such Mutual Funds are best for investors with a long-term perspective who can stomach market volatility and are looking for growth beyond what is available in a more traditional large cap fund.
Although it is safe to invest in this mutual fund let's move forward to understand who should invest in this fund.
Who Should Invest in Invesco Business Cycle Fund?
Understanding the right way of investing is very important this product is suitable for investors who are seeking.
- If you are seeking, a mutual fund that has a perfect blend of both safety and appreciation over the long term then this fund is for you.
- Investments predominantly in equity and equity-related instruments with a focus on riding business cycles through dynamic allocation between various sectors at different stages of business cycles in the economy.
It's time to conclude the Invesco India Business Cycle Fund and end this blog.
Conclusion
In short, this new fund offer is an excellent choice for investors looking to benefit from contemporary economic changes. It seeks to actively manage risk and returns by changing its investment strategy based on the four different phases of the business cycle which are expansion, peak, contraction and recovery. This makes it appealing to investors who practice cycle-based investing rather than static asset allocation. You can start small investments like SIP so that you can easily monitor investments and increase them gradually.
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