DSP Business Cycle Fund
Direct · GrowthAI Summary
DSP Business Cycle Fund delivered a 1Y SIP XIRR of 6.84%, well below the category average of 14.1%, indicating significant underperformance versus sectoral/thematic peers. Against the NIFTY 50, however, the fund shows positive alpha across most horizons, with a 1Y fund CAGR of 6.0% versus the benchmark's -2.9%. Calendar year returns have been modest, at 0.11% in 2024, 3.83% in 2025, and 2.12% in 2026 so far.
The fund exhibits low realized volatility in the recent period, with a maximum drawdown of just -0.15% lasting 57 days and recovering in 117 days. Downside capture of 87.73% (1Y) versus upside capture of 99.64% shows the fund has protected capital in falling markets better than it has participated in rallies. The 1Y Calmar Ratio of 0.54 suggests moderate risk-adjusted returns relative to the drawdown experienced.
The portfolio holds 50 stocks with a diversified top-10 allocation, led by State Bank of India (7.08%) and Axis Bank (5.17%). Banks dominate at 18.1% of the portfolio, followed by IT-Software (9.5%) and Automobiles (6.9%), reflecting a cyclical tilt consistent with the fund's mandate. Exposure spans financials, healthcare, capital markets, telecom, and power, providing reasonable breadth despite the sectoral focus.
The fund's 1Y SIP XIRR of 6.84% trails the category average of 14.1% by a wide margin, placing it in the lower tier of sectoral/thematic peers over the recent period. Longer-horizon benchmark data shows consistently positive alpha versus NIFTY 50 across 3Y to 12Y windows, though alpha narrows from 1.61% at 3Y to under 0.1% at 12Y. This suggests the fund's edge over the broad market has diminished over very long holding periods.
This fund suits investors with a high risk tolerance and a horizon of at least 5-7 years, given the cyclical nature of its strategy and the modest returns over longer windows. It should be treated as a satellite allocation rather than a core holding, ideally capped at 10-15% of an equity portfolio. Investors seeking steady outperformance versus category peers may find better options, but those valuing downside protection and benchmark-beating alpha may find it acceptable.
- Positive alpha versus NIFTY 50 across 1Y (8.63%) and 3Y (1.61%) horizons, with fund CAGR of 6.0% against a benchmark decline of -2.9% over 1Y
- Strong downside protection with downside capture of 87.73% (1Y) and 90.29% (3Y and beyond), cushioning losses in weak markets
- Diversified 50-stock portfolio with a reasonable top-10 concentration and exposure across multiple cyclical sectors
- 1Y SIP XIRR of 6.84% is less than half the category average of 14.1%, indicating significant underperformance versus sectoral/thematic peers
- Alpha versus NIFTY 50 has steadily compressed over longer horizons, turning marginally negative (-0.0022%) at 15Y
- Heavy banking exposure of 18.1% creates concentration risk in a single sector within a thematic mandate
Generated on 09-09-2026, 3:32 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 | ₹12.42 L | 6.8% | -14.3% | 17.8% |
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 | 6.8% | 14.4% | 14.1% | -7.6% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 8.0% | 6.7% | 0.4% | 21.4% | 0.32 | 0.80 | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +8.63 | 0.97 | 99.6% | 87.7% | 6.0% | -2.9% |
| 3 Years | +1.61 | 0.94 | 95.9% | 90.3% | 2.3% | 0.3% |
| 5 Years | +0.79 | 0.94 | 95.9% | 90.3% | 1.4% | 0.2% |
| 7 Years | +0.46 | 0.94 | 95.9% | 90.3% | 1.0% | 0.1% |
| 10 Years | +0.20 | 0.94 | 95.9% | 90.3% | 0.7% | 0.1% |
| 12 Years | +0.10 | 0.94 | 95.9% | 90.3% | 0.6% | 0.1% |
| 15 Years | -0.00 | 0.94 | 95.9% | 90.3% | 0.5% | 0.1% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | ICICI Bank Limited | 9.44% |
| 2 | HDFC Bank Limited | 8.49% |
| 3 | Axis Bank Limited | 5.77% |
| 4 | Bharti Airtel Limited | 4.60% |
| 5 | Larsen & Toubro Limited | 4.20% |
| 6 | Reliance Industries Limited | 3.36% |
| 7 | Mahindra & Mahindra Limited | 3.36% |
| 8 | NTPC Limited | 2.76% |
| 9 | Ultratech Cement Limited | 2.71% |
| 10 | DLF Limited | 2.69% |