Tata Business Cycle Fund aims to deploy the business cycle approach to identify economic trends and invest in sectors and stocks that are likely to outperform, a release issued by the mutual fund house said.
During an expansion phase, it will buy either sector leaders or companies benefiting disproportionately from the sectoral tailwinds, it said. During a contraction phase, it will invest in companies from sectors that provide a cushion during downcycles, the release added.
The scheme will be benchmarked to the Nifty 500 Total Returns Index (TRI) and will be managed by Rahul Singh, chief investment officer, equities, Tata Asset Management; and Murthy Nagarajan, head of fixed income at Tata Mutual Fund on the debt side. For its overseas allocation, it will be managed by Venkat Samala. The scheme is allowed to invest up to 20% of its corpus outside India.
