Edelweiss Business Cycle Fund
Direct · GrowthAI Summary
Edelweiss Business Cycle Fund has delivered a 1Y SIP XIRR of 3.9%, well below the category average of 10.6%, indicating significant underperformance versus sectoral/thematic peers. Over longer horizons, the fund's lump-sum CAGR has trailed the NIFTY 50 across 3Y to 15Y windows, with negative alpha at 3Y (-0.71%), 5Y (-0.33%), and 10Y (-0.03%). The 1Y period is a bright spot, with the fund's CAGR of -4.32% beating the benchmark's -12.37% and generating strong alpha of 8.07%.
The fund's maximum drawdown of -0.26% with a 157-day duration and no recorded recovery suggests limited recent drawdown stress in the measured window, though one drawdown event exceeding 10% has occurred historically. The 1Y Calmar ratio of 0.033 indicates weak risk-adjusted returns relative to the drawdown experienced. Beta of roughly 1.0 to 1.04 shows the fund moves nearly in line with the market, while downside capture of 89.98% over 1Y offers modest protection but rises above 100% over longer windows, meaning it has fallen slightly more than the benchmark in down markets.
Detailed holdings and sector allocation data were not provided for this fund, so specific top holdings and concentration levels cannot be assessed. As a business cycle themed fund, its portfolio is expected to rotate across sectors based on economic cycle positioning, which inherently introduces style and timing risk. Investors should review the latest factsheet to evaluate current sector tilts and diversification before investing.
Against the sectoral/thematic category, this fund lags meaningfully, with its 1Y SIP XIRR of 3.9% trailing the category average of 10.6% by roughly 6.7 percentage points. Calendar year returns have been persistently negative (-5.47% in 2026, -2.45% in 2025, -5.78% in 2024), pointing to weak consistency. The 1Y alpha of 8.07% versus NIFTY 50 shows the strategy added value recently, but longer-term negative alpha suggests this outperformance has not been sustained.
This fund suits experienced investors with high risk tolerance who understand the cyclical, timing-dependent nature of business cycle strategies and can accept multi-year periods of negative returns. A long time horizon of at least 5-7 years is advisable given the negative CAGRs across 3Y to 15Y windows. It should be treated as a satellite allocation rather than a core holding, given its underperformance versus both category peers and the benchmark.
- Strong 1Y alpha of 8.07% versus NIFTY 50, with the fund's -4.32% CAGR significantly outperforming the benchmark's -12.37%
- Favorable 1Y downside capture of 89.98%, indicating better-than-market resilience in falling markets
- Low expense ratio of 0.53% for a direct plan, keeping cost drag minimal
- 1Y SIP XIRR of 3.9% trails the category average of 10.6% by a wide margin, signaling underperformance versus thematic peers
- Negative alpha and lagging CAGR versus NIFTY 50 across 3Y, 5Y, 10Y, and 15Y windows, with three consecutive negative calendar years (2024-2026)
Generated on 29-10-2026, 2:17 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 | ₹12.17 L | 3.7% | -18.0% | 18.0% |
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 | 3.7% | 14.3% | 10.6% | -10.6% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 0.9% | 0.9% | -14.6% | 21.0% | -0.72 | -0.62 | 55% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +8.07 | 1.00 | 100.9% | 90.0% | -4.3% | -12.4% |
| 3 Years | -0.71 | 1.04 | 98.9% | 100.8% | -4.2% | -3.1% |
| 5 Years | -0.33 | 1.04 | 98.9% | 100.8% | -2.5% | -1.9% |
| 7 Years | -0.16 | 1.04 | 98.9% | 100.8% | -1.8% | -1.3% |
| 10 Years | -0.03 | 1.04 | 98.9% | 100.8% | -1.3% | -0.9% |
| 12 Years | +0.03 | 1.04 | 98.9% | 100.8% | -1.1% | -0.8% |
| 15 Years | +0.07 | 1.04 | 98.9% | 100.8% | -0.9% | -0.6% |