Aditya Birla Sun Life Business Cycle Fund
Direct · GrowthAI Summary
Aditya Birla Sun Life Business Cycle Fund has delivered strong alpha versus the NIFTY 50, with a 3Y fund CAGR of 12.54% against the benchmark's 5.85% and consistent positive alpha across all periods from 1Y (10.40%) to 15Y (1.24%). However, its SIP XIRR of 12.51% over 3Y trails the category average of 16.18%, and the 1Y XIRR of 10.45% is marginally below the peer average of 10.57%. The fund's edge over the benchmark comes primarily from superior downside protection rather than aggressive upside capture.
The fund shows well-controlled risk with a beta of roughly 0.94 and downside capture of 88.80% over 3Y (79.56% over 1Y), meaning it falls less than the index in corrections. Risk-adjusted returns are solid, with Calmar ratios of 0.783 (1Y) and 0.837 (3Y). The maximum drawdown was modest at -0.18%, though the 490-day recovery time versus a 157-day drawdown duration indicates recoveries can be slow, and there have been 4 drawdown events exceeding 10%.
The portfolio holds 57 stocks with a diversified top 10 accounting for about 26.4% of NAV, led by ICICI Bank (4.16%) and Federal Bank (3.38%). Sector allocation is spread across Banks (14.6%), Auto Components (9.6%), Healthcare Services (7.6%), Industrial Products (7.5%), and Pharmaceuticals (7.3%), reflecting a genuine business-cycle-driven, multi-sector approach. This breadth reduces single-stock and single-sector concentration risk typical of thematic funds.
Against Sectoral/Thematic peers, the fund lags on SIP XIRR at every measured horizon — 12.51% vs 16.18% (3Y) and 10.45% vs 10.57% (1Y) — indicating below-average SIP investor outcomes within its category. Calendar year returns show mixed consistency, with strong years in 2023 (20.0%) and 2024 (19.66%) but flat-to-negative results in 2021 (-0.4%), 2025 (4.93%), and 2026 (-0.73%). Its long-term lump-sum record remains respectable, beating the NIFTY 50 across 1Y to 15Y windows.
This fund suits investors seeking a diversified thematic/business-cycle strategy with lower downside capture than the broad market, rather than maximum category-beating SIP returns. A time horizon of at least 5-7 years is appropriate given the multi-year recovery periods and cyclical rotation inherent to the strategy. Investors should have moderate-to-high risk tolerance and accept that SIP returns currently trail sectoral/thematic peers despite benchmark outperformance.
- Consistent positive alpha versus NIFTY 50 across all time horizons, from 10.40% (1Y) to 1.24% (15Y)
- Strong downside protection with downside capture of 79.56% (1Y) and 88.80% (3Y), cushioning corrections
- Well-diversified 57-stock portfolio with no single holding above 4.16% and top five sectors each under 15%
- SIP XIRR trails the category average at every horizon, including 12.51% vs 16.18% over 3Y
- Slow recovery profile — the maximum drawdown took 490 days to recover versus 157 days of decline, with 4 drawdown events exceeding 10%
Generated on 31-10-2026, 2:16 AM. Verify before investing.
Gives more importance to longer time periods (10Y, 20Y) than shorter ones (1Y, 3Y). This balances out recent outperformance and gives a more realistic picture of what long-term returns might look like.
The largest peak-to-trough decline in the fund's NAV. Shows the worst-case loss an investor would have experienced at any point in the fund's history.
If you invested ₹1,00,000 every month via SIP, here's how this fund has historically performed across different time horizons.
| Duration | Invested | Median Value | XIRR | Min XIRR | Max XIRR |
|---|---|---|---|---|---|
| 1 Year | ₹12.00 L | ₹12.68 L | 14.6% | -18.8% | 50.2% |
| 3 Years | ₹36.00 L | ₹43.29 L | 12.7% | 1.8% | 23.9% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | NIFTY 50 | Category avg | Fund edge |
|---|---|---|---|---|
| 1 Year | 14.6% | 14.3% | 10.6% | +0.3% |
| 3 Years | 12.7% | 11.0% | 16.2% | +1.7% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 13.9% | 10.4% | -7.1% | 41.5% | 0.61 | 2.49 | 93% | — | — |
| 3 Years | 14.9% | 14.6% | 10.4% | 21.2% | 4.02 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +9.23 | 0.91 | 92.0% | 79.4% | -0.1% | -10.9% |
| 3 Years | +6.29 | 0.94 | 97.1% | 88.8% | 12.7% | 6.4% |
| 5 Years | +4.51 | 0.94 | 96.2% | 90.2% | 10.2% | 5.7% |
| 7 Years | +3.04 | 0.94 | 96.2% | 90.2% | 7.2% | 4.0% |
| 10 Years | +1.98 | 0.94 | 96.2% | 90.2% | 5.0% | 2.8% |
| 12 Years | +1.56 | 0.94 | 96.2% | 90.2% | 4.1% | 2.3% |
| 15 Years | +1.16 | 0.94 | 96.2% | 90.2% | 3.3% | 1.9% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | ICICI Bank Ltd. | 4.04% |
| 2 | The Federal Bank Ltd. | 3.28% |
| 3 | Shivalik Bimetal Controls Ltd. | 2.92% |
| 4 | R R Kabel Ltd. | 2.76% |
| 5 | Birlasoft Ltd. | 2.63% |
| 6 | Shaily Engineering Plastics Ltd. | 2.59% |
| 7 | Sai Life Sciences Ltd. | 2.57% |
| 8 | Craftsman Automation Ltd. | 2.54% |
| 9 | S.J.S. Enterprises Ltd. | 2.50% |
| 10 | Karur Vysya Bank Ltd. | 2.49% |