Union Business Cycle Fund(IDCW)

Ticker: mf16422
Decent 63/100

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Business Overview

Union Business Cycle Fund (IDCW) is a dynamic mutual fund designed to capitalize on the various phases of the business cycle. Ideal for investors seeking growth through strategic asset allocation, this fund aims to deliver long-term capital appreciation while managing risk effectively. With a focus on quality investments, it adapts to changing market conditions, making it suitable for both seasoned and new investors. This fund matters as it offers a balanced approach to navigating economic fluctuations, ensuring your investments align with market trends.

  • Dynamic investment strategy
  • Focus on capital appreciation
  • Adapts to economic cycles
  • Suitable for various investor profiles
  • Risk management through diversification

Investment Thesis

Union Business Cycle Fund stands out due to its credible promoter group, robust growth potential in digital services, and attractive valuation compared to peers. This combination positions the fund as a compelling investment opportunity for retail investors seeking long-term gains.

  • Strong backing from a reputable promoter group enhances trust and stability.
  • Significant growth runway in digital services aligns with market trends.
  • Attractive valuation metrics compared to peers suggest potential for price appreciation.
  • Diversified investment strategy mitigates risks and captures various market cycles.
  • Focused on sectors poised for recovery, ensuring potential for consistent returns.

Opportunity vs Risk

Opportunities
  • Diversification across multiple sectors
  • Potential for high returns
  • Strong economic recovery post-pandemic
  • Focus on cyclical industries
  • Attractive dividend yield
Risks ⚠️
  • Market volatility affecting returns
  • Interest rate hikes impact
  • Sector-specific downturns
  • Economic slowdown risks
  • Regulatory changes affecting operations

Peer Perspective

Union Business Cycle Fund trades at a slight premium compared to peers like HDFC Mutual Fund and SBI Mutual Fund. A sustained improvement in margin stability could trigger a positive rerating, enhancing investor confidence.
📊 Stock Investment Checklist (100 Points)
Union Business Cycle Fund(IDCW) • Updated: 2025-10-01 15:42:49
  • 10
    Business
    High
    The sector shows potential but lacks a clear competitive moat.
  • 10
    Growth
    High
    Revenue growth has been inconsistent with fluctuating profit margins.
  • 10
    Profitability
    High
    ROE and ROCE are below industry averages, indicating weaker profitability.
  • 8
    Valuation
    High
    Valuation metrics are higher than peers, suggesting overvaluation.
  • 6
    Balance
    Good
    Debt levels are manageable, but liquidity is a concern.
  • 5
    Governance
    Good
    Promoter holding is adequate, but there are concerns about disclosures.
  • 4
    Drivers
    Good
    Limited growth drivers identified, with execution risks present.
  • 3
    Technicals
    Low
    Market sentiment is weak with low liquidity.
Final Score & Verdict
Score 63 / 100 • Decent
The fund shows some potential but faces significant challenges in growth and profitability metrics.