Sushil Bajaj |
📅 Last Updated on: November 28, 2025
The Motilal Oswal Business Cycle Fund is an open-ended equity scheme that focuses on identifying and capitalizing on different phases of business cycles. It aims to deliver long-term capital appreciation by dynamically allocating investments across sectors and companies that perform differently at various stages of economic expansion and contraction.
This fund uses Motilal Oswal AMC’s QGLP philosophy — Quality, Growth, Longevity, and Price — to find high-quality businesses with sustainable growth potential at reasonable valuations.
These are a subset of thematic, equity, mutual funds, that invest based on the current phase of the economic and business cycle. Business cycle funds dynamically allocate capital to sectors and industries expected to outperform at a specific point in the business cycle.
For example:
During expansion, the fund will prefer investing in cyclical segments such as banking, auto, and infrastructure. During slowdown or recession, it could prefer defensives such as FMCG, IT, and pharma. Business cycle funds are thus, active, tactical allocation funds that aim to generate superior returns by profiting from rotations across sectors based on changing trends in the economy.
| Particulars | Details |
|---|---|
| Fund Name | Motilal Oswal Business Cycle Fund |
| Fund Type | Open-ended equity scheme following a business cycles-based investing theme |
| Category | Equity – Thematic (Business Cycle) |
| Fund House | Motilal Oswal Mutual Fund |
| Benchmark | Nifty 500 Total Return Index (TRI) |
| Investment Objective | Long-term capital appreciation by investing in equity & related instruments with a focus on business cycles |
| Fund Managers | Ajay Khandelwal, Niket Shah, Atul Mehra, Rakesh Shetty (Debt), Sunil Sawant (Foreign Securities) |
| Inception Date | August 27, 2024 |
| Minimum Investment | ₹500 (and in multiples of ₹1 thereafter) |
| Exit Load | 1% if redeemed within 3 months; Nil after 3 months |
| Benchmark Risk-o-meter | Nifty 500 TRI (Very High Risk) |
| Scheme Risk-o-meter | Very High Risk |
To achieve long-term capital appreciation by predominantly investing in equity and equity-related instruments of companies with a focus on riding business cycles through allocation between sectors and stocks at different stages of the business cycle.
The scheme, however, offers no guarantee or assurance of achieving its investment objectives.
The scheme is benchmarked against Nifty 500 TRI, which represents the broad Indian equity market. This benchmark is suitable since the fund invests across multiple sectors and market caps based on business cycle positioning.
The scheme actively adjusts sector and stock allocations based on where the economy stands in the business cycle.
A mix of macroeconomic analysis (to identify the phase of the business cycle) and company-level research (to pick the best stocks within those sectors).
Focuses on Quality businesses, high Growth potential, Longevity of profits, and at a reasonable Price.
Focus on cyclical sectors like industrials, auto, and capital goods.
Shift toward defensives such as FMCG and healthcare.
Move to stable sectors like utilities and consumer staples.
Prepare for the next upcycle with selective accumulation of growth stocks.
Equity & Related Instruments (Business Cycle theme): 80–100%
Other Equity (non-theme): 0–20%
Debt & Money Market Instruments: 0–20%
REITs/InvITs: 0–10%
Overseas Securities: Up to 30% of net assets
The fund follows a benchmark-agnostic, focused, high-conviction portfolio structure.
For updated detailed Performance data and key informations as on December 5, 2025
Visit Motilal Oswal Business Cycle Fund Performance Page
| Dynamic Allocation Advantage |
|---|
| Switches between sectors based on the phase of the business cycle — optimizing returns and managing risk dynamically. |
| Expert Macro & Sectoral Analysis |
|---|
| Motilal Oswal AMC’s strong research capability helps identify sector leadership changes early. |
| QGLP-Based Stock Selection |
|---|
| Ensures investments in quality companies that have sustainable growth and reasonable valuations. |
| Diversification Across Market Caps |
|---|
| Invests across large-cap, mid-cap, and small-cap segments for balanced risk and return. |
| Global Exposure |
|---|
| Up to 30% of assets can be invested in overseas securities for diversification and global opportunity access. |
Expense Ratio: Check latest factsheet.
Exit Load: 1% if redeemed within 3 months; Nil thereafter
Taxation:
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| Common Investor Pain Point | How This Fund Addresses It |
|---|---|
| Sector rotation confusion | Professional fund managers identify the right sectors per business cycle. |
| Market timing issues | Automatic allocation adjustment minimizes timing risk. |
| Concentration risk | Diversified across sectors, market caps, and geographies. |
| Lack of research expertise | Backed by Motilal Oswal AMC’s proprietary QGLP framework and experienced team. |
| Volatility fears | Dynamic allocation cushions downside in contracting economic phases. |
The fund follows a business cycle-based investing approach, dynamically rotating across sectors that are expected to outperform at different stages of economic growth.
Investors with a long-term horizon and high-risk appetite looking to benefit from sector rotation and business cycle trends.
The benchmark is Nifty 500 TRI, representing the broader equity market.
Yes. It is an actively managed thematic fund that adjusts exposure based on economic phases.
₹500 and in multiples of ₹1 thereafter.
The Motilal Oswal Business Cycle Fund offers investors an opportunity to ride the waves of the economy by investing across sectors and companies that align with the current business phase. Backed by Motilal Oswal’s QGLP philosophy and strong research expertise, it is ideal for long-term investors who want active management with a strategic cyclical view.
Disclaimer:- Mutual Fund investments are subject to market risks, please read scheme related documents carefully before investing.
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