An open-ended equity scheme Business Cycle fund has launched by ICICI Prudential Mutual Fund which will open on December 29 and closes on January 12. According to the new information provided, the new scheme focus on leading business cycle with a dynamic allocation of equity and equity-related security investments in various sectors and stocks.
The ICICI Prudential Business Cycle fund will follow a top-down approach right from monitoring macro indicators which includes global and domestic. This helps in identifying different business cycles followed by selecting suitable sectors and the process of choosing the stocks. An ongoing business cycle may extend or get shortened depending on the macroeconomic conditions available and also the fiscal and monetary policy features by the central government. Central banks are also considered during a business cycle. Such a phase of the cycle can often provide appropriate opportunities for the investment.
Nimesh Shah, Managing Director, ICICI Prudential AMC said that returns from the stock market are affected by the various business phases. A typical business cycle has four distinct phases of prosperity, recession, depression, and recovery. Though 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 different patterns and styles which focus on macros. At any point in time investors can gain access to their attractive sectors by proper investment. It will further help to achieve variance within those sectors, he added.
ICICI Prudential Life started its journey in FY 2001 and has constantly been the top company in the Indian life insurance sector. ICICI Prudential Mutual Fund is led by S Naren, who is famous for his calls on macros and market cycles. This new scheme will be managed by Anish Tawakley, Ihab Dalwai, and Manish Banthia. Nifty 500 TRI is the benchmark of the scheme. ICICI Prudential Life, Assets Under Management (AUM) as of 30th September 2020 were 1,814.92 billion. ICICI Prudential Life has become the first private life insurer to attain assets under management of 1 trillion in the year 2015. ICICI Prudential Life is stated as the first insurance company to be listed on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
