DSP Business Cycle Fund: DSP Mutual Fund has launched its new fund offer DSP Business Cycle Fund today i.e. on 27 November 2024. This scheme included in the thematic category is an open ended equity fund, whose benchmark is NIFTY 500 TRI. This fund gives investors an opportunity to earn high returns by investing money in shares of different market capitalization i.e. largecap, midcap and smallcap companies. Investments can be made in this NFO till December 11, 2024.
NFO Open Date: November 27, 2024
NFO closing date: December 11, 2024
Category : Equity Thematic
Minimum investment: Rs 100
Lock in period: none
Exit Load: 0.5% on redemption within 10 months
Riskometer: Very High
Benchmark: NIFTY 500 TRI
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What is investment strategy?
DSP Business Cycle Fund will invest in stocks of companies of all types of market caps, which will diversify the portfolio and also increase the chances of getting high returns. The fund focuses on dynamic asset allocation to industries and sectors that demonstrate strong growth potential, improving fundamentals and attractive valuations.
The scheme will invest 80-100% in equity and equity related options depending on business cycle, 0-20% in equity and equity related options other than business cycle, 0-20% in debt and money market options and issuances by REITs and InvITs. Will allocate 0-10% across units. The minimum application amount in this scheme is Rs 100 and after that it can be anything in multiples of Re 1.
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For whom is the better option?
This NFO is a better option for investors who want to grow their wealth over the long term by investing primarily in equity and equity related options selected based on the business cycle. Investors who understand the ups and downs in the stock market and have the tolerance to bear the risks associated with it. Whereas their investment target is for at least 5 years, these funds are a better option for them. There are both lump sum and SIP investment options in Business Cycle Fund.
SIP Star: Amazing scheme with 4 star rating, SIP of Rs 10,000 turned into Rs 1 crore, money increased 12 times on one time investment
How does a business cycle fund work?
Business Cycle Fund can be invested in stocks of companies of all sectors and all types of market caps. According to the business cycle, stocks of good companies from sectors which are expected to perform well are included in the portfolio of such funds. Generally, on the basis of a special selection process, sectors are first selected according to the business cycle and then financially strong companies of those sectors are selected.
(Disclaimer: We have given information about the new scheme of mutual fund here. This is not an investment advice. There are risks in the market, so take expert advice before investing.)
