Union Business Cycle Fund(IDCW Reinvest)
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Business Overview
The Union Business Cycle Fund (IDCW Reinvest) is a dynamic mutual fund designed to capitalize on various phases of the economic cycle. It is ideal for investors seeking long-term growth through a diversified portfolio that adapts to changing market conditions. This fund aims to provide capital appreciation while managing risks effectively, making it suitable for both seasoned and novice investors. With a focus on strategic asset allocation, it stands out as a reliable investment option in the Indian market.
- Designed for long-term capital growth
- Adapts to different economic cycles
- Diversified portfolio for risk management
- Suitable for both novice and experienced investors
- Focus on strategic asset allocation
- Expert management for optimal performance
Investment Thesis
Union Business Cycle Fund presents a compelling investment opportunity due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. This fund is well-positioned to capitalize on India's economic recovery and digital transformation.
- Backed by a reputable promoter group with a proven track record.
- Strong growth potential in digital services aligns with market trends.
- Attractive valuation offers a competitive edge over peer funds.
- Focus on cyclical sectors poised for recovery in the post-pandemic economy.
- Diversified portfolio mitigates risks while maximizing returns.
Opportunity vs Risk
- Diversified investment across sectors
- Potential for high long-term returns
- Strong historical performance
- Favorable economic conditions
- Rising consumer spending
- Market volatility impacts returns
- Interest rate fluctuations
- Regulatory changes
- Economic downturns
- High expense ratios
Peer Perspective
Union Business Cycle Fund trades at a slight premium compared to peers like HDFC Mutual Fund and ICICI Prudential, with potential for rerating contingent on consistent margin stability and improved growth metrics.
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10BusinessHighThe sector shows potential but lacks a clear moat.
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10GrowthHighRevenue growth has been inconsistent.
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10ProfitabilityHighROE and OCF are moderate, but net profit margins are low.
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8ValuationHighValuation metrics are higher than peers.
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7BalanceHighDebt levels are manageable but liquidity is a concern.
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6GovernanceGoodPromoter holding is decent, but there are some pledging issues.
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5DriversGoodLimited growth catalysts identified.
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5TechnicalsGoodMarket sentiment is neutral with low liquidity.