Axis Business Cycles Fund
Direct · GrowthAI Summary
Axis Business Cycles Fund has delivered a 1Y SIP XIRR of 10.56% and a 3Y SIP XIRR of 8.54%, both trailing the thematic category averages of 11.76% and 16.45% respectively. The 3Y rolling return mean of 15.62% on a lump-sum basis indicates the fund has performed reasonably well over longer holding windows. Calendar year returns show strong momentum in 2023 (36.43%) and 2024 (21.05%), but performance has weakened recently with 4.03% in 2025 and -1.09% in 2026 so far.
The fund shows a modest maximum drawdown of -0.19% with only one drawdown event exceeding 10%, suggesting contained downside historically. However, the recovery from max drawdown took 493 days, indicating that rebounds can be slow. Calmar ratios of 0.85 (1Y) and 0.81 (3Y) reflect moderate risk-adjusted returns relative to the drawdown experienced.
The portfolio is well diversified across 72 holdings, with the top 10 positions accounting for roughly 28.9% of NAV. Banks dominate at 17.5% of the portfolio, with Axis Bank, ICICI Bank, HDFC Bank, and Kotak Mahindra Bank among the top six holdings. Cyclical exposures to construction (L&T), cement (Grasim), and automobiles (M&M) align with the business cycles theme.
The fund underperforms its category on SIP XIRR across both measured periods, with a 3Y gap of nearly 8 percentage points versus the category average of 16.45%. Recent calendar year returns of 4.03% in 2025 and -1.09% in 2026 suggest the fund has lost momentum after strong 2023-2024 performance. This inconsistency makes it a laggard among thematic peers over the current cycle.
This fund suits investors with a high risk tolerance and a horizon of at least 5 years, given the cyclicality of its holdings and the recent return softness. It is appropriate as a satellite allocation rather than a core holding, since thematic funds carry concentrated sector risk. Investors should be prepared for extended recovery periods, as evidenced by the 493-day drawdown recovery.
- Well-diversified portfolio of 72 holdings with no single stock exceeding 4.1% of NAV
- Strong lump-sum 3Y rolling return mean of 15.62%, indicating solid long-window performance
- Contained downside with only one drawdown event exceeding 10% and a shallow average drawdown of -0.03%
- SIP XIRR of 8.54% (3Y) trails the category average of 16.45% by a wide margin
- Recent performance has deteriorated, with -1.09% in 2026 and only 4.03% in 2025 after strong 2023-2024 gains
- Slow recovery from max drawdown took 493 days, and heavy 17.5% bank exposure adds sector concentration risk
Generated on 13-10-2026, 3:13 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 | ₹12.62 L | 16.2% | -22.4% | 53.1% |
| 3 Years | ₹36.00 L | ₹40.76 L | 8.8% | 1.7% | 15.2% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | Category avg |
|---|---|---|
| 1 Year | 16.2% | 11.7% |
| 3 Years | 8.8% | 16.4% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 16.3% | 7.9% | -4.7% | 46.3% | 0.59 | 3.15 | 92% | — | — |
| 3 Years | 15.4% | 15.4% | 12.0% | 19.5% | 5.26 | — | 100% | — | — |
Calmar Ratio by Duration
| # | Stock | % of NAV |
|---|---|---|
| 1 | Larsen & Toubro Limited | 4.08% |
| 2 | Axis Bank Limited | 3.54% |
| 3 | ICICI Bank Limited | 3.38% |
| 4 | HDFC Bank Limited | 3.08% |
| 5 | Grasim Industries Limited | 2.70% |
| 6 | Kotak Mahindra Bank Limited | 2.62% |
| 7 | Mahindra & Mahindra Limited | 2.51% |
| 8 | Bharti Airtel Limited | 2.35% |
| 9 | Eternal Limited | 2.34% |
| 10 | Reliance Industries Limited | 2.27% |