HDFC Business Cycle Fund
Direct · GrowthAI Summary
HDFC Business Cycle Fund has delivered strong alpha versus the NIFTY 50 across all periods, with a 3Y fund CAGR of 13.01% against the benchmark's 7.75% and alpha of 5.32%. Its 1Y SIP XIRR of 14.45% slightly beats the category average of 14.1%, though the 3Y XIRR of 8.38% trails the category's 16.82% by a wide margin. Lump-sum rolling returns are solid, with a 3Y rolling mean of 13.6%.
The fund shows disciplined downside behavior, with downside capture of 86.57% (1Y) and 82.28% (longer periods) versus the NIFTY 50, meaning it falls less than the market. It recorded only one drawdown event greater than 10%, with a maximum drawdown of -18.04% that took 546 days and required 133 days to recover. Calmar ratios of 0.83 (1Y) and 0.75 (3Y) indicate reasonable risk-adjusted returns, supported by near-market beta of roughly 0.92-1.0.
The 57-stock portfolio is well diversified, with the top holding Bharti Airtel at just 5.6% of NAV and the top ten positions totaling under 41%. Banks dominate at 16.9%, followed by Finance at 9.2%, giving a combined financials exposure of roughly 26%. Holdings span telecom, consumer, retail, chemicals, and aviation, consistent with a business cycle approach that rotates across sectors.
Against sectoral/thematic peers, the fund's 1Y SIP XIRR of 14.45% modestly outpaces the category average of 14.1%, but its 3Y XIRR of 8.38% lags the category's 16.82% significantly. Calendar year returns show uneven consistency, ranging from 29.51% in 2023 to -1.0% in 2022 and just 2.41% in 2025. The persistent positive alpha versus the NIFTY 50 across 1Y to 15Y horizons suggests genuine stock-selection skill even where SIP returns trail peers.
This fund suits investors with high risk tolerance who understand that sectoral/thematic funds are cyclical and can underperform for extended stretches. A time horizon of at least 5-7 years is advisable, given the 546-day maximum drawdown duration and uneven yearly returns. It should be treated as a satellite allocation within a diversified portfolio rather than a core holding, ideally via SIP to smooth entry points.
- Consistent positive alpha versus NIFTY 50 across all measured periods, including 5.32% over 3Y and 4.65% over 5Y
- Favorable downside capture of 82-87% across periods, cushioning losses in weak markets
- Well-diversified 57-stock portfolio with no single holding above 5.6% of NAV
- 3Y SIP XIRR of 8.38% trails the category average of 16.82% by a substantial margin
- Highly uneven calendar year returns, from 29.51% in 2023 to -1.0% in 2022 and 2.41% in 2025, reflecting cyclical strategy risk
Generated on 10-09-2026, 3:10 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 | ₹12.65 L | 14.4% | -25.2% | 45.8% |
| 3 Years | ₹36.00 L | ₹40.63 L | 8.4% | -1.8% | 15.7% |
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 | 14.4% | 14.4% | 14.1% | +0.0% |
| 3 Years | 8.4% | 11.1% | 16.8% | -2.7% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 15.0% | 7.5% | -5.9% | 40.0% | 0.60 | 2.66 | 93% | — | — |
| 3 Years | 13.6% | 13.2% | 10.8% | 16.4% | 4.64 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +7.53 | 1.00 | 96.5% | 86.6% | 4.6% | -2.9% |
| 3 Years | +5.32 | 0.95 | 95.0% | 87.5% | 13.0% | 7.8% |
| 5 Years | +4.65 | 0.92 | 91.9% | 82.3% | 9.9% | 5.1% |
| 7 Years | +3.10 | 0.92 | 91.9% | 82.3% | 7.0% | 3.6% |
| 10 Years | +1.98 | 0.92 | 91.9% | 82.3% | 4.8% | 2.5% |
| 12 Years | +1.55 | 0.92 | 91.9% | 82.3% | 4.0% | 2.1% |
| 15 Years | +1.12 | 0.92 | 91.9% | 82.3% | 3.2% | 1.7% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Bharti Airtel Ltd. | 5.60% |
| 2 | ICICI Bank Ltd. | 5.46% |
| 3 | Kotak Mahindra Bank Limited | 5.10% |
| 4 | Titan Company Ltd. | 4.73% |
| 5 | HDFC Bank Ltd.£ | 3.09% |
| 6 | Aether Industries Ltd | 3.08% |
| 7 | PEARL GLOBAL INDUSTRIES LIMITED | 3.00% |
| 8 | Eternal Limited | 2.80% |
| 9 | InterGlobe Aviation Ltd. | 2.75% |
| 10 | Vishal Mega Mart Limited | 2.63% |