Bandhan Business Cycle Fund

Bandhan Business Cycle Fund's 1-year SIP XIRR of 1.58% significantly trails the thematic category average of 11.71%, underperforming peers by roughly 10 percentage points. Calendar year returns have been inconsistent, with -7.27% in 2026, 5.77% in 2025, and -2.24% in 2024, indicating difficulty generating positive returns across market cycles. The 1-year rolling return mean of 2.67% (lump-sum) also suggests weak return generation over recent periods.

The fund shows a maximum drawdown of just -0.18% with an average drawdown of -0.05%, indicating very shallow recent price declines, though recovery from the max drawdown has not yet occurred after 87 days. However, the fund has experienced 2 drawdown events exceeding 10%, revealing meaningful downside risk over longer horizons. The 1-year Calmar ratio of 0.16 is low, indicating weak risk-adjusted returns relative to the drawdown endured.

Detailed holdings and sector allocation data were not provided for this analysis, so concentration and diversification cannot be assessed from the available information. As a business cycle thematic fund, the portfolio is typically rotated across sectors based on macroeconomic cycle positioning, which can lead to concentrated sector bets at any given time. Investors should review the latest factsheet to evaluate current sector tilts and top stock exposures before investing.

The fund materially lags its thematic category peers, with a 1-year XIRR of 1.58% versus the category average of 11.71%, placing it in the bottom tier of its peer group. Calendar year returns have alternated between negative and modestly positive, showing a lack of consistency across years. This persistent underperformance suggests the fund's cyclical timing strategy has not worked in its favor recently.

This fund is suitable only for experienced investors with a high risk tolerance who understand thematic and cyclical strategies, and it should be limited to a satellite allocation rather than a core holding. A long time horizon of at least 5-7 years is advisable, as business cycle strategies require patience through full economic cycles. Conservative investors or those seeking steady category-matching returns should consider diversified flexi-cap or large-cap alternatives instead.

• Low expense ratio of 0.62% for a thematic direct plan, keeping costs competitive
• Recent maximum drawdown of only -0.18% with a shallow average drawdown of -0.05%, indicating contained recent downside
• Business cycle strategy offers diversification benefits for investors with heavy exposure to static sector funds

• Severe underperformance versus category, with 1-year XIRR of 1.58% against a category average of 11.71%
• Inconsistent calendar year returns, including -7.27% in 2026 and -2.24% in 2024, with no recovery yet from the max drawdown after 87 days
• Two drawdown events exceeding 10% and a low Calmar ratio of 0.16 point to weak risk-adjusted performance