Choose a

better route.

Aim to stay ahead with

HDFC Business Cycle Fund
(An open ended equity scheme following business cycle based investing theme)

HDFC Business Cycle Fund aims to invest in businesses likely on the cusp / midst of a favourable business cycle.

What is a Business Cycle?

Peak
(Stable growth
at high levels)
Business Activity

Business cycle is the journey across four phases

Co (Delcowing
nt lining gro
s

of growth in business activity, observed in

ra / wth
ion

ct )
th)

acceleration / deceleration across factors such

io
row
ns

n
g
pa
g

as volume growth, pricing power, competitive

sin
Ex
(Ri

intensity, cost consciousness, capex intensity,

Slump ROCE and business sentiment.
(Phase of weak / no growth)

Time

Why does business cycle investing make sense?

Higher confidence Correlation with Investment Ahead of the curve: Agility:
on forecasts: valuations: strategy: Based on lead Investments across
Estimating positioning of When businesses are Invest in businesses indicators, domain companies and themes
various business cycles in upcycle, get dual likely on the cusp/midst expertise and recurring are not static in nature
and their trajectory can benefit of earnings of favorable business patterns in business and can be rotated
be done with higher growth and upcycle, avoid history, investing based on stages of
confidence vs the improvement in businesses about to opportunities can be business cycles.
general economic cycle valuation multiples enter/in a downcycle identified ahead of time

AMFI Registered Mutual Fund Distributor

Portfolio Strategy – HDFC Business Cycle Fund

Blend of top down and bottom up approach

Core of portfolio (>80%) would be companies likely on the cusp / midst of favourable business cycle, while
avoiding companies about to enter/in a business downcycle
Non-core (<20%) portfolio would consist of 1) growth stories relatively agnostic to the business cycle 2)
stocks relatively better positioned within their sector 3) tactical opportunities with favourable risk-reward
Risk management: Adequate diversification (across sectors / sub sectors / market cap) along with an active
approach towards business cycle selection

Large and experienced team with a rigorous investment process

Rahul Baijal, Senior Fund Manager, Equities, with experience spanning over 20 years in
Equity Research and Fund Management

Experienced team: 28 Investment professionals with average experience of 18 years

Experienced risk management team

Wide and deep stock coverage ~ 400 stocks in the core list covering ~85% of India market cap

HDFC Business Cycle Fund aims to leverage strengths in its research and fund
management team to manage the Fund based on outlook on business cycles

Who should consider investing?

This product may be suitable for investors who are looking for
Exposure to businesses likely on the cusp / midst of a favourable business cycle
A fund that is agile in rotation of investments based on assessment of stages of business cycles.
A product suitable for buy and hold / SIP for long periods of time
Investment horizon of 3 or more years

HDFC Business Cycle Fund is suitable for investors who are seeking*: Riskometer #

To generate long-term capital appreciation/ income

Investment predominantly in equity & equity related instruments of business
cycle based theme

*Investors should consult their financial advisers, if in doubt about whether the
product is suitable for them.
# For latest riskometer, investors may refer to the Monthly Portfolios disclosed
on the website of the Fund viz. www.hdfcfund.com

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS,

READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.