Check out these MF favourite sectors that are undergoing business upcycle

There are 11 thematic mutual fund schemes that offer portfolios comprising stocks that may benefit from upcycle in underlying businesses. These schemes identify sectors - and pick stocks from them - that show signs of growth in their business cycles. A business cycle comprises various stages where a company or a sector undergoes a period of expansion, moderation, and contraction (or consolidation). Fund managers of these schemes identify opportunities across sectors using various metrics such as economic parameters, investment indicators, and business and consumer sentiment indicators. Most of them follow a top down approach of identifying the sectors first and then selecting the stocks within them. They manage the investments dynamically to benefit from changes in fortunes of underlying businesses. Following are the preferred sectors by the 11 business cycle funds. They have managed a corpus of about Rs 20,000 crore. Portfolio data is as of September 30, 2023.

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