What is Business Cycle Fund and should it be in your Portfolio
What is Business Cycle Fund and Should you invest in such fund. ?? Before we understand Business Cycle Fund, we must understand in brief what is Business Cycle… The four stages of the cycle are expansion, peak, contraction, and trough . Factors such as GDP, interest rates, total employment, and consumer spending, can help determine the current stage of the economic cycle. The classical business cycles are identified as recurrent, alternating phases of expansion and contraction in a large number of economic activities. So by navigating business cycles accurately, an equity fund can become an all-weather investment vehicle. 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. Historical observation and analysis of trends shows that there are evidences to suggest that the nature of the stocks that do well...