Most of the businesses in the world go through different phases of the business cycle. Usually, there are four phases which are Expansion when a business grows, then comes Peak when the business is at its saturation point, then comes contraction when the business slows down, and then comes Trough which is when the business is at its lowest. 

Now every business has its cycle while some of them depend on the economic cycle, some others have a different cycle and there are only a few businesses, or products which get least affected by these cycles. 

Edelweiss Business Cycle Fund Direct-Growth uses the business cycle of different companies to invest in them and how, we will discuss that in this article along with the returns and performance, risks, and many other details of the fund. 

Fund Management and Objectives

Edelweiss Business Cycle Fund Direct Plan-Growth aims to accumulate wealth by capital appreciation via investing in stocks of different companies navigating their business cycles. The fund has a dynamic approach with which it allocates funds to different businesses during different stages of the business cycle. It also takes into account the economic cycle and how businesses react to that. 

Edelweiss Business Cycle Fund Direct Plan-Growth is managed by – 

• Bharat Lahoti: He has been managing the fund since 9 July 2024. Before joining Edelweiss Asset Management Limited, he was working with D.E. Shaw India Software Pvt. Ltd. as a Senior Manager in the Fundamental Research Segment. He has over nine years of experience in the research department of financial services. He is working as the fund manager – equity and a Key Person in Edelweiss Asset Management Ltd. Apart from this fund, he has been managing quite a long list of funds. 
• Bhavesh Jain: He has been managing the fund since 9 July 2024. Before joining Edelweiss Mutual Fund, he was working as an SGX Nifty Arbitrage Trader at Edelweiss Securities. He holds an MMS in Finance from Mumbai University. 

Excited about investing in the Edelweiss Business Cycle Fund? Open a free Demat account today!

How Does the Edelweiss Business Cycle Fund Work?

The Edelweiss Business Cycle Fund works on the fundamental factor of any business which is the business cycle. As every business has some other business cycle, which determines the growth, returns, and performance of the business, this is what the fund manager looks for to allocate funds in this scheme. 

For instance, if a business is entering its growth or expansion phase, then the fund manager can put money into the scheme so that as the business grows, the investment also grows. Now if the business is about to enter the contraction period, then the fund manager starts withdrawing from the stock and invests elsewhere where the business is in the expansion or growth phase. 

This way, the fund creates the potential for higher returns and mitigates risks due to diversification as well. 

Performance and Returns (As of 24 Mar 2025) 

Edelweiss Business Cycle Fund Direct-Growth is a new fund that has been launched in 2024 and thus, the long-term performance of the fund cannot be established yet. On top of that, it’s one of a kind of a scheme which is why, there is no average category data available for the fund as well. 

Here are the returns it generated in the past six months, and periods lesser than that. 

Time Frame	Edelweiss Business Cycle Fund Direct-Growth (%)
Since Inception	-17.40
6 Month	-20.04
3 Month	-11.84
1 Month	4.51
1 Day	0.97
YTD	-12.77

If you look at the above table, then the fund has been performing as the market is performing as a whole. However, for long-term investments, whether it would be a good choice or not is still not clear. 

Investment Allocation (As of 28 Feb 2025)

The Edelweiss Business Cycle Fund Growth has 98.64% of its assets invested in equity and equity-related instruments with just 1.41% in the debt instruments, and it has negative positions in the cash and cash equivalents by 0.05% as of 25 February 2025. 

Market cap-wise asset allocation 

• Giant cap – 38.74%
• Large Cap – 36.30%
• Mid-cap – 24.96%
• Small-cap – Nil

As of 28 February 2025, the fund had an average market cap of ₹116479 crore and it spans

across 58 stocks where the top 10 stocks make up 32.98% of its assets. 

Sectoral Allocation 

The fund invests across sectors offering a well-diversified portfolio, here are the top five sectors as of 28 February 2025 – 

Sectors	Allocation (%)
Financial Services	28.12
Healthcare	15.59
Technology	15.28
Consumer Discretionary	14.27
Industrials	8.90

Stock-wise Allocation 

The top five stocks of the Edelweiss Business Cycle Fund include – 

Stocks	Assets (%)
Divi’s Lab	4.34
Persistent Systems	3.91
ICICI Bank	3.77
Bajaj Finance	3.63
Fortis Healthcare	3.20

Key Metrics 

As of 28 February 2025, the fund had an expense ratio of 0.44%, which is lower than the category average of 0.88%.

Fund Details	Information
AUM (Assets Under Management)	₹1575 Crore as of 28 February 2025
Category	Equity Fund, open-ended
Fund Manager	Bharat Lahoti & Bhavesh Jain
Exit Load	1% for Redemption within 90 days
Entry Load	Nil
Minimum Investment	₹100 (Lump sum)₹100 (SIP)
Benchmark	Nifty 500 (TRI)

The Edelweiss Business Cycle Fund NAV as of 24 March 2025 stood at ₹8.2598. 

Risk and Performance of the Edelweiss Business Cycle Fund 

This fund is classified as a ‘Very High Risk’ fund, which indicates that the fund has the potential for higher returns but there will be high volatility as well. However, specific risk data are not available for this fund as of now due to its recent launch. 

Taxation for Edelweiss Business Cycle Fund 

If you’re investing in the Edelweiss Business Cycle Fund, here’s how your returns will be taxed:

1. Short-Term Gains – If you sell the fund units within 1 year of the date of investment, a 20% tax will be levied on the entire return generated during the period. 
2. Long-Term Gains – If you sell the fund units after one year, any profit generated over and above ₹ 1.25 lakh will be taxable at a 12.5% rate. The same rate will be applicable for any investment tenure above 1 year. 

So, the longer you hold your investments, the better returns you can expect and the lesser effect of taxes!

3. Taxes on Dividends – Dividends earned, if any, will be taxable at the hands of investors as per their tax slabs. If the dividend income surpasses Rs. 5000 in a financial year, then the fund house will deduct 10% TDS before disbursing the dividend into the account of the investor. 

Minimum Investment and Lock-in Period

The minimum investment amount in the Edelweiss Business Cycle Fund is ₹100 for lump sum and SIP, which is ₹100. There is no lock-in period for the Edelweiss Business Cycle Fund Direct-Growth.

How to Invest in Edelweiss Business Cycle Fund Direct?

You can invest in the Edelweiss Business Cycle Fund – Direct Growth plan with Shoonya. 

Shoonya offers a free Demat account,  Zero brokerage trading, advanced trading tools, 100+ technical indicators, and much more!

Investing in Lump Sum Mutual Funds through the Shoonya Web Platform

Here’s a quick guide on how to invest in lump sum mutual funds through the Shoonya web platform:

1. First, you must log in to your Shoonya account at trade.shoonya.com. From the “Orders” section, click on “MF order.”
2. Search for the fund you wish to invest in; in this case, the Edelweiss Business Cycle Fund – Direct Growth plan.
3. Choose “Fresh” for a new investment and enter the amount you want to invest.
4. You can complete your purchase by clicking the “Purchase” button.
5. You will receive a payment link on your registered email. Use the link to make the payment.

After payment, your mutual fund units will be allotted to your Demat account within T+2 days.

Note: You can only make the payment using the bank account registered with your Demat account.

Setting Up an SIP for Mutual Funds

If you prefer a Systematic Investment Plan (SIP) for Edelweiss Business Cycle Fund Direct Plan-Growth plan, you must follow these steps:

1. First, you need to log in to your Shoonya account at trade.shoonya.com. Go to “Orders” and click on “XSIP.”
2. Find the mutual fund for which you want to set up an SIP. In this case, the Edelweiss Business Cycle Fund – Direct Growth plan.
3. If this is your first SIP with Shoonya, you need to create a Mandate ID. 

For that, you must enter the mandate amount and the validity date (until you want to keep your SIP active).

4. You must submit the details, and you’ll receive a Mandate authentication link via email. Approval generally takes 24 hours.

Once your Mandate is approved, you can follow these steps to set up your SIP:

1. Go to “XSIP,” enter the SIP amount, and select “Fresh” as the transaction type.
2. Choose the date when the SIP will be debited directly from your registered bank.
3. The approved Mandate ID will auto-reflect.
4. Choose “Monthly” for monthly debits and specify the number of installments (e.g., 24 installments for a 2-year SIP).

If you do not want to forget your SIPs and invest systematically, the SIP method can be most suitable for you. 

Why Invest in the Edelweiss Business Cycle Fund?

The reasons for investing in the Edelweiss Business Cycle Fund Direct-Growth can be the fund’s – 

• Unique approach for generating wealth 
• Capital appreciation goals for long-term

Suitability of this Fund| Who Should Invest?

The Edelweiss Business Cycle Fund Direct is suitable for investors who:

• Are looking for higher returns and ready to take higher risk 
• Looking for long-term capital appreciation 
• Can stay invested for at least five years 
• Can tolerate market ups and downs and business cycles 

Conclusion

Edelweiss Business Cycle Fund is truly unique and one of its kind in the mutual fund space right now. While that makes it stand out, and the objective of the fund is to achieve long-term capital appreciation and accumulation of wealth, this can be a good option for long-term investors. However, since it’s a newly launched fund, without most information available, the investors must wait to see how the performance turns up and then consider this fund. 

Edelweiss Business Cycle Fund Direct-Growth|FAQs

Source: MoneyControl

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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.