Kotak Business Cycle Fund

It's a Navigator
It invests in sectors and stocks which show signs of
growth in the business cycle.

NFO starts on 7th September 2022

and ends on 21st September 2022
Why should you choose
Business Cycle Fund?

Demand

Price
Business has a Price
Life Cycle
Central
Utilization
Supply
Demand
Destruction

Similarly

Lower Interest
Rates To Stimulate
The Economy

More Borrowing,
Bust! More Spending,
Sectors too More Employment

have a
Less Employment, Life Cycle Boom!
More Defaults
(For e.g. Banking)

Repay Loans, Raise Interest

Cut Spendings Rates To Cool
The Economy

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 It’s important to identify
the Business Cycle

• GDP Growth
• Inflation
• Interest Rates
• Commodities GLOBAL
• Currency MACROS

• GDP Growth
• Fiscal Deficit/CAD
• Currency
DOMESTIC • Interest Rate
MACROS • Inflation
• Credit Growth

• Capex Investments
• Project Clearance
• Infrastructure
• Capacity Utilization INVESTMENT

• PMI
Manufacturing
BUSINESS & & Service
CONSUMER • Business
CONFIDENCE Confidence
Index

The above list is not exhaustive and above mentioned indicative indicators are used to ascertain business cycle and the same may change based on the evolving
environment. The asset allocation and investment strategy will be as per Scheme Information Document. The portfolio of the scheme is subject to changes within
the provisions of the Scheme Information document of the Scheme.

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 Business Cycle investing
is similar to driving

Driving on Expressway Economy in Top Gear

Smooth Roads
Low Interest Rate
Comfortable Journey
Favourable
Less Travel Time Macroeconomic
Scenario
Efficient
Fuel Consumption

Favorable for speed Condusive for sectors

@70-100 kmph

Banks

Capital Goods

Consumer
Discretionary

Real Estate

The sectors mentioned in this slide do not constitute any recommendation and Kotak Mutual Fund
may or may not have any future position in these sectors.
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 Business Cycle investing
is similar to driving

Conditions when driving

Economy in Mid Gear
on a City Highway

Average Roads

Less Comfortable Rising Interest Rate

Journey

More Travel Time Stable

Due To Traffic Macroeconomic
Scenario
Inefficient Fuel
Consumption

Favorable speed
Condusive for sectors
@40-70 kmph

Energy

Metals

Technology

The sectors mentioned in this slide do not constitute any recommendation and Kotak Mutual Fund
may or may not have any future position in these sectors.
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 Business Cycle investing
is similar to driving

Conditions when driving

Economy on top gear
in a Village

Narrow Roads
High Interest Rate
Uncomfortable Journey
Unfavourable
More Travel Time Macroeconomic
Scenario
High
Fuel Consumption

Favorable speed
@10-40 kmph Condusive for sectors

Technology

Pharmaceuticals

Power

Telecom

The sectors mentioned in this slide do not constitute any recommendation and Kotak Mutual Fund
may or may not have any future position in these sectors.
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 Why should you invest in
Kotak Business Cycle Fund now?
India Has improved despite the Pandemic

Progress Indicators 2014 2021

Economy Size (GDP) 10 6

Share in Global GDP* 2.6% 3.2%

Share in Global Trade & Services 2.0% 2.2%

Share in Global FDI Flows# 2.1% 6.7%

Auto Production 7 4

Steel Production 4 2

Mobile Phone Production 12 2

Number of Unicorns* 4 93

India’s Weight in BRICS* 13.5% 21.5%

India’s Weight in EM* 6.6% 12.0%

Climate Change Performance 31 10

Global Innovation Index 83 46

WGI Governance Index 103 49

Ease of Doing Business 142 63

Source: Bloomberg, MSCI, IMF, UNCTAD, CB Insights. Numbers mentioned in percentages are of 2022 & others are ranks
* Value as of 2022. #Value of 2020 and are as per the latest details available in the public domain.

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Why should you invest in
Kotak Business Cycle Fund now?
Corporate Profitability is critical for markets

FY20 FY21 FY22 FY23E

GDP Growth 3.7% -6.6% 8.7% 6.8-7.7%

Nifty 50 Companies
Profit Growth (%) -2.9 22.6 39.7 18.9

Nifty EPS (INR) 472 542 733 864

Nifty PE Ratio (x) 18.2 27.1 23.8 18.3

Cost Cut, Tax Cut,

Factors Driving Interest rate reduction, Operating
Profit Growth Debt reduction & leverage
tighter working capital

Source: Kotak institutional, Motilal Oswal Estimates

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Why choose Kotak
Business Cycle Fund?
Top Down and
Bottom Up Approach
Identifies sectors and
good companies
within them

No Cap on
Market Cap
Flexibility to
buy into all
market cap
segment

Kotak
Business
Cycle
Fund

Diversification
Across Sectors
Invests across
all sectors

Sounding Board
Investment Committee acts as sounding board

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 Scheme features
Name of the Scheme Kotak Business Cycle Fund

Type of Scheme An open ended equity scheme following business cycles based
investing theme

Benchmark Nifty 500 Total Return Index

Fund Manager Mr. Pankaj Tibrewal for Equity

Mr. Abhishek Bisen for Debt

Minimum Application Rs. 5,000/- and in multiples of Re. 1

Amount During NFO for purchases and of Rs.0.01 for switches

Exit Load Redemption/Switch up to 10% of the initial investment within 1 Year

from DOA* - Nil.
Redemption/Switch in excess of limit within 1 year from DOA* – 1% of
Applicable NAV.
Redemption/Switch after 1 year from DOA* - Nil.

Options Growth and Income Distribution cum Capital Withdrawal

(IDCW) (Payout and Reinvestment)

*Date Of Allotment
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 Risk-O-Meter
KOTAK BUSINESS CYCLE FUND
An open ended equity scheme following business cycles
based investing theme

Investors understand that their principal Investors understand that their principal
will be at very high risk will be at very high risk
Scheme Risk-O-Meter Benchmark Risk-O-Meter

The product is suitable for investors who are seeking*:

• Long term capital growth.
• Investment in portfolio of predominantly equity & equity related securities of companies
with a focus on riding business cycles through dynamic allocation between various
sectors and stocks at different stages of business cycles in the economy.

*Investors should consult their financial advisors if in doubt about whether the product is
suitable for them

(The product labelling assigned during the New Fund Offer is based on
internal assessment of the Scheme Characteristics or the model portfolio
and same may vary post NFO when actual investments are made)
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS,
READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.

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