DSP Mutual Fund has announced the launch of its DSP Business Cycle Fund, an open-ended equity fund designed to help investors capitalize on business cycles by dynamically allocating assets to high-growth industries. The fund will invest across large, mid, and small-cap stocks, focusing on sectors with improving fundamentals and attractive valuations.
The investment strategy revolves around a framework-driven approach that allows active sector allocation during upcycles, while also implementing risk management tactics such as cash calls and portfolio hedging through put options and arbitrage opportunities. With the flexibility to invest up to 10% in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), the fund offers an unconstrained investment approach that targets industries at the bottom of their cycle, poised for significant growth.
Charanjit Singh, Fund Manager at DSP Mutual Fund, said, “Timing entry and exit into sectors can be tricky for investors, but the DSP Business Cycle Fund is built to navigate these cycles with precision.” The New Fund Offer (NFO) opens on November 27, 2024, and closes on December 11, 2024. In the Guwahati market, the DSP Business Cycle Fund is expected to attract investors looking for flexibility and active sectoral allocations to boost returns, as the region increasingly embraces sophisticated investment opportunities.
