Bank of India Business Cycle Fund

The fund has delivered a 1-year SIP XIRR of 2.87%, which is significantly below the category average of 14.1% and reflects weak short-term performance. Over the same period, the fund's CAGR of 8.59% outperformed the NIFTY 50's -2.9%, but the rolling 1-year return is -0.29%, indicating negative lump-sum returns. Longer-term CAGRs are near zero or slightly negative, while the benchmark also shows negative returns, suggesting the fund has struggled to generate positive absolute returns.

The fund exhibits a maximum drawdown of -0.25% with a duration of 79 days and has not yet recovered, indicating a prolonged period underwater. The Calmar ratio for 1 year is -0.0115, reflecting poor risk-adjusted returns relative to the drawdown experienced. With a beta of 0.89, the fund is slightly less volatile than the NIFTY 50, but its downside capture of 76.88% suggests it loses less in down markets, while upside capture of 91.71% indicates it participates less in up markets.

The top 10 holdings account for 38.45% of the portfolio, with a significant concentration in banks (14.3%) and power (10.6%), alongside consumer durables (10.7%). The fund holds 51 stocks, providing moderate diversification, but sector concentration in financials and cyclical sectors like power and metals may increase vulnerability to economic cycles. Notable holdings include NTPC, SBI, ICICI Bank, and HDFC Bank, which are large-cap names, but the inclusion of smaller caps like Sky Gold and Diamonds adds a growth-oriented tilt.

The fund's 1-year XIRR of 2.87% is drastically lower than the category average of 14.1%, placing it in the bottom quartile of its peer group. Calendar year returns show high volatility, with a 9.42% gain in 2026 but losses of -8.06% in 2025 and -1.6% in 2024, indicating inconsistent performance. The fund's alpha versus the benchmark is positive for most periods (e.g., 10.49% over 1 year), but the absolute returns remain weak, suggesting the fund has not capitalized on market opportunities effectively.

This fund is suitable for investors with a high risk tolerance and a long-term horizon (7+ years) who can withstand significant drawdowns and volatility. It is not appropriate for conservative investors or those seeking stable income, given the negative rolling returns and prolonged drawdown recovery. Investors should be aware that the fund's performance has lagged its category peers significantly, and they may consider alternative thematic funds with better track records.

• Positive alpha versus the NIFTY 50 over 1, 3, 5, 7, and 10-year periods, indicating the fund has outperformed the benchmark on a risk-adjusted basis.
• Lower downside capture (76.88% over 1 year) suggests the fund protects capital better than the benchmark during market declines.
• Diversified portfolio with 51 holdings across multiple sectors, reducing single-stock risk.

• 1-year SIP XIRR of 2.87% is far below the category average of 14.1%, indicating significant underperformance relative to peers.
• The fund has not recovered from its maximum drawdown, with a recovery period of 'None' days, and the Calmar ratio is negative, reflecting poor risk-adjusted returns.
• Calendar year returns have been negative in 2024 and 2025, and the fund's long-term CAGRs are near zero, suggesting a lack of consistent positive returns.