Business cycle and Innovation fund

What’s the difference between a business cycle and a innovation fund?

You would be facing this question many times

Hearing investment team and fund managers couple of times below is the jist. Hope u find it helpful

The business cycle refers to the changes in economic activity that an economy experiences over time. It can consist of periods of expansion (growth) and contraction (recession)
Duration: Business cycles can vary in length example infra in 2005 to 2008, IT and Pharma post Covid were business cycles to be played

An innovation fund will be specifically focused on investing in companies and products that are involved in innovative and cutting-edge activities. The fund aims to generate high returns by capitalizing on the growth potential of companies that are developing new technologies, products, or processes.

Focus on Innovation:

The fund primarily invests in companies that are at the forefront of technological advancements, scientific research, or other forms of innovation, Common sectors include technology, biotechnology, pharmaceuticals, logistics, solutions renewable energy, and artificial intelligence.

Growth-Oriented companies aiming for capital appreciation rather than income generation.
They tend to invest in early-stage or high-growth companies with significant upside potential.
Diversification Despite the specific focus, fund will maintain a level of diversification by investing in a variety of companies across sectors
This helps to spread risk across different sub-sectors and companies

POV: Invest wisely!