Baroda BNP Paribas Business Cycle Fund
Direct · GrowthAI Summary
Baroda BNP Paribas Business Cycle Fund has delivered strong alpha over the NIFTY 50 across all periods, with a 3Y fund CAGR of 15.01% versus the benchmark's 7.75% and a 1Y alpha of 9.08%. On the primary SIP metric, its 1Y XIRR of 16.72% beats the category average of 14.1%, though the 3Y XIRR of 16.41% and 5Y XIRR of 12.98% trail category averages of 16.82% and 16.95% respectively. Calendar year returns show high dispersion, ranging from 32.03% in 2023 to just 0.1% in 2021, reflecting the cyclical nature of the strategy.
The fund exhibits a beta below 1 (0.92-0.94) with downside capture consistently around 82-89%, meaning it has historically fallen less than the benchmark during declines. The maximum drawdown of -0.20% with a 158-day recovery window and only 2 drawdown events above 10% suggests contained downside risk. Calmar ratios of 0.79 (1Y) and 0.87 (3Y) indicate reasonable risk-adjusted returns, supported by consistent positive alpha across all measured periods.
The portfolio holds 49 stocks with the top 10 accounting for roughly 34% of NAV, led by ICICI Bank (5.7%), Reliance Industries (4.94%), and HDFC Bank (4.23%). Banks dominate at 18.4% of the portfolio, followed by Pharmaceuticals (7.9%) and IT-Software (7.7%), giving meaningful weight to financials. The holdings span banks, construction, pharma, automobiles, and electrical equipment, consistent with a business cycle approach that rotates across sectors.
The fund outperforms the category on 1Y SIP XIRR (16.72% vs 14.1%) but lags on longer horizons, with the 5Y XIRR of 12.98% falling about 4 percentage points below the category average of 16.95%. Its lump-sum 3Y rolling return mean of 17.68% exceeds its 3Y point-to-point CAGR of 15.01%, suggesting returns have been uneven across windows. Alpha remains positive at every horizon from 1Y to 15Y, indicating persistent benchmark outperformance even where category-relative standing is weaker.
This fund suits investors with a high risk tolerance and an investment horizon of at least 5-7 years, as sectoral/thematic funds like this one show significant year-to-year return variability. It works well as a satellite allocation within a diversified portfolio rather than a core holding, given its concentrated sector bets. Investors should be comfortable with periods of flat returns, such as the 0.1% calendar return in 2021 and 1.74% in 2022, in exchange for long-term alpha potential.
- Consistent positive alpha over NIFTY 50 across all periods, from 9.08% at 1Y to 1.37% at 15Y
- Favorable downside capture of 82-89% with beta below 1, limiting losses relative to the benchmark
- 1Y SIP XIRR of 16.72% outpaces the category average of 14.1%, and the 0.93% expense ratio is competitive
- 5Y SIP XIRR of 12.98% trails the category average of 16.95% by roughly 4 percentage points
- High calendar year return dispersion, from 32.03% in 2023 to 0.1% in 2021, demands patience from investors
- Banks exposure of 18.4% creates meaningful concentration in a single sector
Generated on 11-09-2026, 3:16 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 | ₹12.62 L | 16.7% | -24.5% | 58.3% |
| 3 Years | ₹36.00 L | ₹44.49 L | 16.4% | 2.1% | 34.2% |
| 5 Years | ₹60.00 L | ₹82.31 L | 13.0% | 12.7% | 13.2% |
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% | +2.3% |
| 3 Years | 16.4% | 11.1% | 16.8% | +5.3% |
| 5 Years | 13.0% | 10.4% | 16.9% | +2.5% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 16.0% | 8.7% | -9.5% | 51.9% | 0.54 | 2.25 | 85% | — | — |
| 3 Years | 17.7% | 17.5% | 12.6% | 24.3% | 4.82 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +9.08 | 0.92 | 94.7% | 82.3% | 7.0% | -2.9% |
| 3 Years | +7.33 | 0.94 | 98.2% | 88.7% | 15.0% | 7.8% |
| 5 Years | +5.21 | 0.94 | 95.4% | 88.6% | 11.8% | 6.6% |
| 7 Years | +3.51 | 0.94 | 95.4% | 88.6% | 8.3% | 4.7% |
| 10 Years | +2.29 | 0.94 | 95.4% | 88.6% | 5.7% | 3.3% |
| 12 Years | +1.82 | 0.94 | 95.4% | 88.6% | 4.8% | 2.7% |
| 15 Years | +1.37 | 0.94 | 95.4% | 88.6% | 3.8% | 2.1% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | ICICI Bank Limited | 5.70% |
| 2 | Reliance Industries Limited | 4.94% |
| 3 | HDFC Bank Limited | 4.23% |
| 4 | Larsen & Toubro Limited | 4.13% |
| 5 | Sun Pharmaceutical Industries Limited | 3.27% |
| 6 | Divi's Laboratories Limited | 2.97% |
| 7 | Bharat Heavy Electricals Limited | 2.78% |
| 8 | State Bank of India | 2.41% |
| 9 | TVS Motor Company Limited | 2.38% |
| 10 | Kotak Mahindra Bank Limited | 2.30% |