Introduction to ABSL Business Cycle Fund
Aditya Birla Sun Life (ABSL) Business Cycle Fund emerges as a dynamic investment avenue designed to navigate the cyclical nature of financial markets. This exploration unveils the intricacies of the fund, delving into its investment philosophy, strategic approach, and the unique features that position it as a compelling option for investors seeking to navigate the nuances of business cycles.
Investment Philosophy and Objectives
At the core of ABSL Business Cycle Fund lies a distinctive investment philosophy that seeks to capitalize on the ebbs and flows of economic cycles. This section elucidates the fund’s objectives, emphasizing its goal to generate optimal returns by strategically positioning investments across various sectors in alignment with the prevailing business cycle.
Chart: ABSL Business Cycle Fund Investment Strategy Overview
[Include a visual representation, such as a chart or infographic, illustrating the key elements of ABSL Business Cycle Fund’s investment strategy. This chart serves as a dynamic guide to understanding the fund’s approach to navigating different phases of business cycles.]
Understanding Business Cycles
To comprehend the essence of ABSL Business Cycle Fund, investors benefit from a comprehensive understanding of business cycles. This segment outlines the typical phases—expansion, peak, contraction, and trough—and how the fund strategically adjusts its portfolio to harness opportunities arising from each phase.
Sector Allocation and Rotation
ABSL Business Cycle Fund’s success hinges on its adept sector allocation and rotation strategy. This involves analyzing economic indicators, market trends, and sector-specific performances to dynamically allocate assets. The fund’s ability to pivot between sectors based on the prevailing business cycle is a key factor in its potential for generating alpha.
Risk Management and Diversification
RETURNSÂ (NAV as on 17th January, 2024)
| Period Invested for | ₹10000 Invested on | Latest Value | Absolute Returns | Annualised Returns | Rank within Category |
|---|---|---|---|---|---|
| 1 Week | 10-Jan-24 | 10023.90 | 0.24% | – | 46/167 |
| 1 Month | 15-Dec-23 | 10177.70 | 1.78% | – | 103/165 |
| 3 Month | 17-Oct-23 | 10909.10 | 9.09% | – | 112/159 |
| 6 Month | 17-Jul-23 | 11180.10 | 11.80% | – | 111/146 |
| YTD | 01-Jan-24 | 10031.80 | 0.32% | – | 97/167 |
| 1 Year | 17-Jan-23 | 12069.00 | 20.69% | 20.69% | 120/138 |
| 2 Year | 17-Jan-22 | 11943.10 | 19.43% | 9.28% | 96/128 |
| Since Inception | 03-Dec-21 | 12600.00 | 26.00% | 11.50% | 137/168 |
SIP RETURNSÂ (NAV as on 17th January, 2024)
| Period Invested for | ₹1000 SIP Started on | Investments | Latest Value | Absolute Returns | Annualised Returns |
|---|---|---|---|---|---|
| 1 Year | 17-Jan-23 | 12000 | 13870.62 | 15.59 % | 29.9 % |
| 2 Year | 17-Jan-22 | 24000 | 29036.31 | 20.98 % | 19.44 % |
A robust risk management framework is integral to ABSL Business Cycle Fund’s strategy. This section explores how the fund employs diversification, risk assessment models, and other risk mitigation techniques to safeguard investor portfolios, particularly during periods of economic downturns.
Performance Analysis and Historical Data
Top 10 Stocks in Portfolio
| Stock Invested in | Sector | Value(Mn) | % of Total Holdings | 1M Change | 1Y Highest Holding | 1Y Lowest Holding | Quantity | 1M Change in Qty |
|---|---|---|---|---|---|---|---|---|
| Â HDFC Bank Ltd. | Private sector bank | 1025.6 | 6.61% | -0.19% | 13.51%Â (Jul 2023) | 6.61%Â (Dec 2023) | 6.00 L | -0.57 L |
| Â ICICI Bank Ltd. | Private sector bank | 896.9 | 5.78% | 0.19% | 10.32%Â (Feb 2023) | 5.59%Â (Nov 2023) | 9.00 L | 0.00 |
| Â Sun Pharmaceutical Industries Ltd. | Pharmaceuticals | 748.7 | 4.83% | -0.01% | 4.84%Â (Nov 2023) | 3.12%Â (May 2023) | 5.94 L | 0.00 |
| Â Reliance Industries Ltd. | Refineries & marketing | 743.4 | 4.79% | 0.25% | 5.01%Â (Jul 2023) | 3.99%Â (Jan 2023) | 2.88 L | 0.00 |
| Â Infosys Ltd. | Computers – software & consulting | 732.9 | 4.72% | 0.14% | 6.75%Â (Feb 2023) | 4.59%Â (Nov 2023) | 4.75 L | 0.00 |
| Â Larsen & Toubro Ltd. | Civil construction | 653.9 | 4.21% | 0.39% | 4.21%Â (Dec 2023) | 1.81%Â (Jan 2023) | 1.85 L | 0.00 |
| Â HCL Technologies Limited | Computers – software & consulting | 549.8 | 3.54% | 0.65% | 3.54%Â (Dec 2023) | 1.83%Â (Jan 2023) | 3.75 L | 50.00 k |
| Â Bajaj Finance Ltd. | Non banking financial company (nbfc) | 494.6 | 3.19% | -0.59% | 4.73%Â (Oct 2023) | 2.95%Â (Jan 2023) | 67.50 k | -0.13 L |
| Â Bharti Airtel Ltd. | Telecom – cellular & fixed line services | 490.3 | 3.16% | -1.46% | 4.62%Â (Nov 2023) | 2.65%Â (Jan 2023) | 4.75 L | -2.10 L |
| Â Ultratech Cement Ltd. | Cement & cement products | 462.1 | 2.98% | 0.23% | 2.98%Â (Dec 2023) | 2.18%Â (Jun 2023) | 44.00 k | -2.00 k |
Investors keen on ABSL Business Cycle Fund benefit from a detailed performance analysis and historical data. This includes an examination of the fund’s returns across different market conditions, providing insights into its resilience and adaptability over time.
Investor Suitability and Risk Appetite
A tailored approach to investor suitability is paramount. This part of the exploration focuses on understanding which investors may find ABSL Business Cycle Fund aligning with their risk appetite, investment goals, and overall portfolio strategy.
Fund Manager Expertise and Strategy Communication
The expertise of the fund manager plays a pivotal role in the success of ABSL Business Cycle Fund. This segment sheds light on the fund manager’s experience, investment philosophy, and how communication of the fund’s strategy is conveyed to investors.
Future Outlook and Market Trends
Top holdings
| Holdings | Weightage |
|---|---|
| ICICI Bank Ltd | 9.35% |
| HDFC Bank Ltd | 9.24% |
| Infosys Ltd | 5.81% |
| Reliance Industries Ltd | 3.97% |
| Axis Bank Ltd | 3.92% |
| State Bank of India | 3.87% |
| Larsen & Toubro Ltd | 3.69% |
| Hindustan Unilever Ltd | 3.57% |
| Tata Steel Ltd | 3.29% |
| Bajaj Finance Ltd | 3.29% |
A glimpse into the future involves an analysis of ABSL Business Cycle Fund’s outlook and its alignment with anticipated market trends. Understanding how the fund positions itself amid evolving economic scenarios provides investors with valuable insights for informed decision-making.