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Invest in the L&T Business Cycles Fund. Win through all market cycles.

 (A open ended Equity Scheme)

NFO Opens July 30, 2014 and NFO Closes August 13, 2014

Click here to download Application Form

The one-of-a-kind L&T Business Cycles Fund.

The L&T Business Cycles Fund will invest in companies that are strategically placed to make the most of the economy’s business cycles. During high growth times, the portfolio can be entirely aimed at cyclical companies. On the other hand, the portfolio could entirely comprise defensive companies to generate stable returns during periods of low growth. In short, the L&T Business Cycles Fund aims to offer you the best of both worlds – heady gains and steady growth.

Get smarter. Get the best of both worlds.

  • A product that is suitable for investors looking to benefit from strategic positioning of portfolio based on stage of business cycle – a smarter move
  • Potential to deliver higher alpha over long term. However, short term performance could be significantly different from diversified equity schemes.
  • A product which could potentially outperform in both rising as well as falling market.
  • Over long term, the strategy could potentially deliver better risk adjusted returns compared to diversified equity funds.
  • Suitable for investors looking to benefit from economic recovery over the next few years.
  • Adds style diversification to investor’s portfolio.

All economies go through “Business Cycles” or the expansion and contraction of economic activity. Investing in companies that deliver growth during the high and low waves is what the business cycle investing approach is all about. Here is the logic:

A rising market is a circle of euphoria – jobs and incomes grow, consumer spending follows suit and company revenues grow. Typically, automobiles, electronics, travel, hospitality, infrastructure, among other businesses, begin to boom. The stocks of these companies are called ‘cyclical stocks’ and they are the hallmark of rising markets.

On the other hand, when the economy is slow, consumers tighten their belts. So where are the investment opportunities? Common sense says there is no question of cutting back on basic necessities like electricity or medicines. As a result, utilities, pharmaceuticals and healthcare are defensive and they provide relatively stable returns whether the economy is up or down.

Cyclical and Defensive stocks tend to outperform all other investments.

n From 2004 to 2007, when the economy was in a growth phase, cyclical companies delivered average annual returns of over 45%.

n During the years 2008 to 2013, which included one of the worst financial crises of our times, defensive companies delivered over 16% annually.

To summarise, during the 10-year period from 2004 to 2013, a bank fixed deposit would have yielded about 8.30%^. The S&P BSE-200 delivered less than 13%. However, during the same time, a business cycle investing strategy would have delivered average annual returns of over 27%.

Key Benefits

Best of both worlds: One fund that aims to deliver through all market cycles

Attractive investment diversifier: A well-differentiated, one-of-a-kind fund

Potential for higher alpha: Potential to grow faster than the broader market and perform better than fixed income investments

Opportunity maximiser: Well placed to benefit from economic recovery over the next few years

Long-term wealth creation: Invests in companies with quality management, strong balance sheets and good returns potential

Research coverage: Strong investment team to identify growth trends, disciplined research-based investing to capitalise on opportunities

No cap or sector bias: Will invest across companies and industries

How is the fund different from other equity funds?

Diversified Equity Funds

n Unlike a typical diversified equity fund that spreads across sectors at all times, the L&T Business Cycles Fund has the flexibility to point its entire portfolio to cyclical or defensive stocks.

n The differentiated strategy rules out short-term performance pressure versus diversified equity funds.

Sector Funds

n The L&T Business Cycles Fund is not sector-specific as it invests across sectors. As an ‘all seasons’ fund, it has the ability to shift between sectors depending on medium-term economic or business cycle trends.

Sector Rotation Funds

n The L&T Business Cycles Fund focuses on strategically changing allocation across sectors based on medium-term economic or business cycle trends. Sector rotation funds are typically driven by factors such as short-term market movements and valuation changes.

Investment Option

1] Minimum Investment Rs.5000

2] Options : Growth, Dividend (Reinvestment and Payout)

3] SIP: Available.

Asset Allocation Pattern of the Scheme Risk Profile Normal Allocation (% of total Assets)
Equity and Equity related securities  High 65-100%
Cash, Money Market & Debt instruments Low 0-35%

Load Structure

Entry Load: Nil

Exit Load: For redemption within 18 months from the date of allotment or purchase applying First-In First-Out basis: 1.00%

Product Labelling

This product is suitable for investors who are seeking:

  • long term capital growth
  • a close ended scheme with investments in equity and equity related securities predominantly in small & midcap companies
  • high risk (BROWN)

Note: Risk is represented as:(BLUE) investors understand that their principal will be at low risk.(YELLOW) investors understand that their principal will be at medium risk(BROWN) investors understand that their principal will be at high risk.

Investors should consult their financial advisers if in doubt whether the product is suitable for them.

Attach following document along with the application form

  • Application Process / Forms Submission Centres  What is the process/procedure to Invest in Mutual Fund Schemes? Please take print of the Application Form on A4 size paper.Click here for Application Form
  • a] KYC Completed Status Copy, Click here for check KYC Status 
  • b] If not done KYC then fills up KYC Form, affixed Photograph, attach PAN Card & Address Proof Photo Copy attested by applicant.)
  • Cheque / DD should be drawn in favour of “L&T Business Cycles Fund”
  • One Cancelled Cheque /copy (for SIP Registration)
  • Keep photocopy of application form for your record.
  • Submit / deposit your application form in below mentioned Collection Centres/ Branches.
  • To record and track the status/allotment of your application form, send us the soft copy Application Form/ Acknowledgement Slip.
  • The mutual fund company would issue you an Account Statement and confirmation about account has been opened within 4 working days from the date of investment.
  • The account statement will reach your communication address within 15-30 Days from date of allotment.
  • Free Home Service available *

Contact for investment on 9822403407 or write us on sanriyainvest@gmail.com

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