Edelweiss Asset Management Limited (EAMC/EMF)One of India's fastest growing asset management companies, Edelweiss Business Cycle FundThis innovative open-ended equity scheme will be open for subscription from 9 July 2024 to 23 July 2024 and is designed to leverage business cycles to effectively capture market opportunities.
New investment opportunities
Edelweiss Business Cycle Fund deploys a sophisticated investment strategy that focuses on the dynamic nature of business cycles. The fund employs a factor-based approach that aims to create three distinct baskets of stocks representing quality, growth and value. This diversification strategy helps to minimise the cyclical risk associated with a single factor.
By selecting the most momentum stocks within each basket, the fund builds a robust portfolio of 50-60 stocks. This approach ensures dynamic rotation across sectors over various time horizons and seamlessly combines momentum and fundamentals to optimize entry and exit points, resulting in a strategy aimed at generating better alpha for investors.
Addressing the Challenge of Market Timing
Radhika Gupta, Managing Director and CEO, Edelweiss Mutual FundHighlighting the innovation of the fund, he said, “Edelweiss Business Cycle Fund offers investors a convenient and unique solution by undertaking dynamic sector rotation. The strategy effectively addresses the common challenge of timing sector entry and exit, which investors often struggle with. Momentum has been India's best performing driver for many years and when combined with other fundamental factors, has proven highly effective in generating long-term alpha. Investing across sectors and market caps, the fund offers a robust solution with core allocation with a long-term perspective.”
Fund Management Expertise
This fund: Bharat Lahoti and Mr. Bhavesh Jain, Co-Head of Factor Investing at Edelweiss Mutual FundTheir expertise in factor-based investing, combined with their in-depth understanding of market trends and stock selection, is expected to improve the fund's performance.
Mr. Lahoti and Mr. Jain have extensive experience in managing investments based on factor-based strategies. Their approach is focused on identifying stocks with strong price momentum, with a keen eye on fundamentals. This dual focus enables the fund to remain agile and sensitive to changing market conditions and capitalize on emerging opportunities.
Investment strategies and benefits
Edelweiss Business Cycle Fund's strategy involves regular rotation across sectors and investing in sectors that are currently performing well. This active approach enables the fund to capture trends and changes in the business cycle and provide investors exposure to sectors with high potential.
The fund has a benchmark-agnostic approach and does not strictly follow any particular market index. This flexibility allows it to invest in various sectors while focusing primarily on large and mid-cap stocks. By identifying growth, value and high quality stocks that exhibit price momentum, the fund aims to build a diversified and resilient portfolio.
Why Invest in Edelweiss Business Cycle Fund?
- Dynamic Sector Rotation: The fund can dynamically rotate between sectors, ensuring it stays aligned with the most promising areas of the market.
- Factor-Based Investing: The fund minimizes the risks associated with any single investment factor by focusing on quality, growth and value stocks.
- Fundamental Momentum: Combining momentum with strong fundamentals can help optimize stock selection and increase return potential.
- Experienced management team: The fund is managed by experts in factor-based investing and benefits from their deep market insight and strategic approach.
- Long-term focus: The fund's robust investment strategy is designed for a core allocation and is suitable for investors looking to invest for the long term.
Subscription Details
The New Fund Offering (NFO) for Edelweiss Business Cycle Fund will be open from July 9, 2024 to July 23, 2024. This period will provide investors an opportunity to participate in a fund designed to capture market trends through an innovative factor-based investment approach.
