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What is Edelweiss Business Cycle Fund?
Investors are always looking for new and creative ways to maximise their holdings and profit from market movements. The recently introduced Edelweiss Business Cycle Fund is a unique choice that uses a factor-based investment strategy to capture business cycle trends. It will be available for subscription from July 9th to July 23rd, 2024. This fund seeks to improve returns while successfully controlling risks. It promises a new take on sector allocation and timing.This product is appropriate for those looking at an increase in capital in the long term. The Edelweiss Business Cycle Fund makes use of an investment strategy that is factor-based and supported by data. The goal of this complex technique is to produce comparatively higher returns by dynamically allocating sectors. With a strong 15-year history of employing factor-based methods, the fund gives investors confidence in its approach.
Importance of a Business Cycle Fund?
Traditional sector-focused funds often direct investors to volatile returns due to their concentrated exposure. On the other hand, diversified funds typically track benchmarks, limiting the flexibility to rotate sectors based on existing economic conditions. The Edelweiss Business Cycle Fund targets the cyclical nature of sectors, aiming to capitalise on their uptrends while avoiding the downtrends. This dynamic strategy aims to provide superior higher with controlled risk exposure.
Key Features:
Data-Backed, Factor-Based Investment Approach: This approach ensures that investment decisions are grounded in empirical data, enhancing the likelihood of achieving desirable outcomes.
Dynamic Sector Allocation: By actively rotating sectors, the fund seeks to capture the positive momentum of various industries while avoiding those experiencing downturns.
Proven Track Record: The fund’s investment team has successfully employed factor-based strategies for over 15 years, proving their expertise and reliability.
Impressive Results: The fund has shown approximately 2X returns on a 1-year and 3-year basis compared to the Nifty 500, highlighting its potential to outperform traditional benchmarks.
Investment Approach
The Edelweiss Business Cycle Fund employs a meticulous investment strategy to achieve its goals. The fund’s universe comprises the top 300 stocks by market capitalization, ensuring a broad and diversified pool of potential investments. The multifactor approach combines momentum with value, growth, and quality factors, offering a balanced and comprehensive analysis of each stock.
Maximising Returns via Strategic Asset Allocation
To effectively capture business cycle trends, the fund undergoes a quarterly rebalance. Thanks to these frequent adjustments, the fund is able to stay in line with current market conditions which also guarantee that the portfolio is positioned to maximise returns and minimise risks. Moreover, the fund sustains a balanced allocation between mid-cap and large-cap companies, providing a well-rounded exposure to various market categories.
Benchmark: Nifty 500 TRI
The Edelweiss Business Cycle Fund uses the Nifty 500 TRI as its benchmark, providing a broad comparison index that includes an extensive range of market activity. By aiming to outperform this comprehensive index, the fund sets a high standard for its performance.
Conclusion
For investors hoping to profit from business cycles’ inherent volatility, the Edelweiss Business Cycle Fund is a strong option. It differs from standard funds due to its creative, factor-based investment strategy, dynamic sector allocation, and track record. The fund aims to provide higher returns with lower risk by concentrating on uptrends and avoiding downtrends. Now is the ideal moment for investors to think about including this fund in their portfolios so they may take advantage of its strategic advantages, as the NFO period spans from July 9th to July 23rd, 2024.
