Edelweiss Business Cycle Fund
Direct · GrowthAI Summary
Edelweiss Business Cycle Fund's 1Y SIP XIRR of 3.54% trails the category average of 14.1% by a wide margin, indicating significant underperformance versus sectoral/thematic peers. On a lump-sum basis, the fund posted a 1Y CAGR of 5.32% against the NIFTY 50's -2.9%, generating a strong 1Y alpha of 8.40%. However, over longer horizons (3Y to 15Y), the fund's CAGR has remained negative and slightly below the benchmark, with alpha hovering near zero or negative.
The fund's beta of roughly 1.02-1.06 indicates market-level volatility, while a 1Y Calmar Ratio of just 0.0171 reflects weak risk-adjusted returns. It has experienced one drawdown event exceeding 10%, with a maximum drawdown duration of 157 days and no recorded recovery yet from the max drawdown. Downside capture above 100% in the 3Y window (101.09%) suggests the fund has fallen slightly more than the benchmark during declines, which is a concern for risk-conscious investors.
Detailed holdings and sector allocation data were not provided, so concentration and diversification cannot be assessed from this dataset. As a business cycle thematic fund, it typically rotates across sectors based on macroeconomic cycles, which can lead to higher portfolio turnover and sector concentration at different points in the cycle. Investors should review the latest factsheet for current top holdings and sector weights before investing.
The fund significantly lags its category, with a 1Y SIP XIRR of 3.54% versus the category average of 14.1%, a gap of roughly 10.6 percentage points. Calendar year returns have been weak and inconsistent, with losses of -5.78% in 2024 and -2.45% in 2025 before a modest 1.67% in 2026. This persistent underperformance across multiple timeframes suggests the fund has struggled to compete with sectoral/thematic peers.
This fund is suitable only for experienced investors with high risk tolerance who understand the cyclical, thematic nature of the strategy and can accept multi-year negative return stretches. A time horizon of at least 5-7 years is advisable given the extended drawdown durations and negative long-term CAGRs. It should be treated as a satellite, tactical allocation rather than a core portfolio holding, and investors should consider the stronger category peers before committing capital.
- Strong 1Y alpha of 8.40% versus the NIFTY 50, with the fund's 5.32% CAGR beating the benchmark's -2.9%
- Favorable capture profile in the 1Y window, with downside capture of 87.49% below upside capture of 98.49%
- Low expense ratio of 0.53% for a thematic fund in the direct plan
- Severe underperformance versus category peers, with 1Y SIP XIRR of 3.54% against a category average of 14.1%
- Negative long-term CAGRs across all windows from 3Y to 15Y, with alpha near zero or negative versus the benchmark
- Unrecovered maximum drawdown lasting 157 days and downside capture above 100% over 3Y, indicating weak downside protection
Generated on 09-09-2026, 3:35 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 | ₹12.16 L | 3.5% | -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 | 3.5% | 14.4% | 14.1% | -10.9% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 0.5% | 0.0% | -14.6% | 21.0% | -0.73 | -0.62 | 50% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +8.40 | 1.02 | 98.5% | 87.5% | 5.3% | -2.9% |
| 3 Years | -0.27 | 1.06 | 99.8% | 101.1% | -1.9% | -1.1% |
| 5 Years | -0.01 | 1.06 | 99.8% | 101.1% | -1.1% | -0.7% |
| 7 Years | +0.11 | 1.06 | 99.8% | 101.1% | -0.8% | -0.5% |
| 10 Years | +0.19 | 1.06 | 99.8% | 101.1% | -0.6% | -0.3% |
| 12 Years | +0.21 | 1.06 | 99.8% | 101.1% | -0.5% | -0.3% |
| 15 Years | +0.25 | 1.06 | 99.8% | 101.1% | -0.4% | -0.2% |