Axis Business Cycles Fund
Direct · GrowthAI Summary
The Axis Business Cycles Fund has delivered a 1-year SIP XIRR of 16.67%, outperforming the category average of 14.1% and significantly beating the NIFTY 50's negative return of -2.9% over the same period. However, its 3-year SIP XIRR of 9.06% lags the category average of 16.82%, indicating weaker performance over the medium term. The fund's rolling returns are strong, with a 3-year mean of 16.06%, suggesting consistent lump-sum performance over that window.
The fund exhibits moderate volatility with a beta of around 1.0 relative to the NIFTY 50, and it has a maximum drawdown of -19.25% with a recovery period of 493 days, indicating meaningful downside risk. The Calmar ratios of 0.89 (1Y) and 0.83 (3Y) suggest reasonable risk-adjusted returns, but the single drawdown event exceeding 10% highlights vulnerability during market downturns. Downside capture ratios below 100% (95.17% for 1Y and 94.81% for 3Y) indicate the fund loses less than the benchmark in falling markets, which is a positive risk characteristic.
The fund holds 72 stocks with a top 10 concentration of about 28.9% of NAV, led by Larsen & Toubro (4.08%) and several major banks including Axis, ICICI, and HDFC. Sector concentration is notable in Banks at 17.5%, followed by Auto Components (5.5%) and Industrial Products (5.3%), indicating a cyclical tilt. The portfolio is diversified across 72 holdings, but the heavy banking exposure could lead to sector-specific risk.
The fund outperforms its category peers on a 1-year basis (16.67% vs 14.1% category average) but underperforms significantly on a 3-year basis (9.06% vs 16.82% category average), suggesting inconsistent performance relative to peers. Calendar year returns show high volatility, with a strong 36.43% in 2023 but only 4.03% in 2025, indicating a lack of consistency. The fund's 3-year rolling return of 16.06% is close to the category's 3-year average, but the SIP XIRR lag suggests timing sensitivity for systematic investors.
This fund is suitable for investors with a high risk tolerance and a long-term horizon of at least 5-7 years, given its cyclical nature and drawdown risk. It may appeal to those seeking exposure to business cycle themes and willing to accept volatility for potential outperformance in favorable economic phases. Investors should be prepared for periods of underperformance, as evidenced by the 3-year SIP XIRR lag, and should consider it as a satellite allocation rather than a core holding.
- Consistent outperformance over the benchmark across all time frames, with alpha ranging from 1.77% (15Y) to 10.32% (1Y).
- Lower downside capture than upside capture (e.g., 95.17% vs 108.06% for 1Y), indicating better protection in falling markets.
- Strong 1-year SIP XIRR of 16.67% versus the category average of 14.1%, showing recent momentum.
- 3-year SIP XIRR of 9.06% significantly lags the category average of 16.82%, indicating poor performance for systematic investors over the medium term.
- Maximum drawdown of -19.25% with a recovery period of 493 days, which may be too volatile for conservative investors.
Generated on 30-08-2026, 3:06 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 | 16.7% | -22.4% | 53.1% |
| 3 Years | ₹36.00 L | ₹40.82 L | 9.1% | 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 | NIFTY 50 | Category avg | Fund edge |
|---|---|---|---|---|
| 1 Year | 16.7% | 14.4% | 14.1% | +2.2% |
| 3 Years | 9.1% | 11.1% | 16.8% | -2.1% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 17.1% | 8.6% | -4.7% | 46.3% | 0.63 | 3.47 | 92% | — | — |
| 3 Years | 16.1% | 15.7% | 13.9% | 19.5% | 7.18 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +10.32 | 1.06 | 108.1% | 95.2% | 6.8% | -2.9% |
| 3 Years | +8.12 | 1.02 | 104.9% | 94.8% | 15.9% | 7.8% |
| 5 Years | +5.83 | 0.99 | 101.4% | 89.7% | 12.7% | 6.9% |
| 7 Years | +4.03 | 0.99 | 101.4% | 89.7% | 8.9% | 4.9% |
| 10 Years | +2.75 | 0.99 | 101.4% | 89.7% | 6.2% | 3.4% |
| 12 Years | +2.26 | 0.99 | 101.4% | 89.7% | 5.1% | 2.8% |
| 15 Years | +1.77 | 0.99 | 101.4% | 89.7% | 4.1% | 2.3% |
| # | 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% |