Edelweiss Mutual Fund Launches Edelweiss Business Cycle Fund – Should You Invest? – Money News

Edelweiss Asset Management Limited (EAMC/EMF), one of India's fastest growing asset management firms, has launched Edelweiss Business Cycle Fund. The new open-ended equity scheme, which will be open from 9 July 2024 to 23 July 2024, has a business cycle based investment theme designed to effectively capture market opportunities.

Edelweiss Business Cycle Fund employs factor investing This approach creates three baskets representing quality, growth, and value stocks: By diversifying across these baskets, the fund minimizes single-factor cyclicality.

Within each basket, the fund will select stocks with the most momentum to form a diversified portfolio of 50-60 stocks. The fund will dynamically rotate across sectors over various time horizons, aiming to seamlessly combine momentum and fundamentals to enter and exit sectors and generate better alpha.

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Speaking about the launch, Radhika Gupta, MD & CEO, Edelweiss Mutual Fund said, “Edelweiss Mutual Fund is a leading global mutual fund.“Edelweiss Business Cycle Fund offers a convenient and unique solution to investors by engaging in dynamic sector rotation. The strategy effectively addresses a common challenge of timing sector entry and exit that investors often struggle with.”

“Momentum is the most positive factor in India.” Over the years, combined with other fundamental factors, it has proven to be highly effective in generating long-term alpha. By investing across a range of sectors and markets, “The fund, although capped, offers a robust solution for core asset allocation with a long-term perspective,” she added.

The fund will be managed by Bharat Lahoti and Bhavesh Jain, co-heads of factor investing.