HSBC Business Cycles Fund
Direct · GrowthAI Summary
HSBC Business Cycles Fund has delivered a 10Y SIP XIRR of 17.18%, close to the category average of 17.5%, though shorter-term XIRR figures lag peers — 9.52% over 1Y versus 11.61% for the category and 12.99% over 3Y versus 16.36%. Lump-sum performance has been more resilient, with 3Y rolling returns averaging 16.81% annually. Recent calendar years have been weak, with returns of -3.6% in 2026 and -2.48% in 2025 following strong gains of 37.53% in 2024 and 31.74% in 2023.
The fund's maximum drawdown of -0.45% appears unusually shallow, but it took 806 days to reach and 302 days to recover, indicating prolonged periods of stagnation rather than sharp crashes. Seven drawdown events exceeding 10% have occurred historically, reflecting meaningful volatility typical of a thematic fund. Calmar ratios of roughly 0.31 to 0.34 across all durations suggest consistent but modest risk-adjusted returns.
The portfolio is well diversified across 62 holdings, with the top position, Mtar Technologies, at only 4.06% of NAV and the top ten holdings collectively under 30%. Sector exposure is spread across capital markets (10.5%), banks (9.2%), electrical equipment (8.6%), and construction (7.4%), with meaningful allocations to aerospace and defense names like Bharat Electronics and Hindustan Aeronautics. This breadth tempers the concentration risk often seen in thematic funds.
The fund trails its category on SIP XIRR across nearly all horizons, including 15.58% over 5Y versus 16.78% for the category and 17.47% over 7Y versus 16.68%, showing mixed relative consistency. Its lump-sum rolling returns of 14.29% to 16.81% over 3Y to 10Y windows indicate steadier long-term compounding. Performance has been highly cyclical, swinging from -16.41% in 2018 to 45.21% in 2017, which is characteristic of the business cycles theme.
This fund suits investors with a high risk tolerance and a horizon of at least 7 to 10 years, given its cyclical return pattern and extended drawdown recovery periods. It is best used as a satellite allocation within a diversified portfolio rather than a core holding, since thematic funds can underperform for extended stretches. Investors should be comfortable with multi-year periods of flat or negative returns, as seen in 2025 and 2026.
- Long-term SIP XIRR of 17.18% over 10Y and 17.47% over 7Y demonstrates strong wealth compounding for patient investors
- Well-diversified portfolio of 62 holdings with no single stock above 4.06% of NAV, reducing single-stock risk
- Consistent Calmar ratios of 0.31 to 0.34 across all time horizons indicate stable risk-adjusted return generation
- SIP XIRR trails the category average across 1Y, 3Y, 5Y, and 10Y horizons, including 9.52% versus 11.61% over 1Y
- Highly volatile calendar-year returns, ranging from -16.41% in 2018 to 45.21% in 2017, with two consecutive negative years in 2025 and 2026
Generated on 30-10-2026, 2:19 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 | ₹12.68 L | 16.1% | -60.7% | 102.9% |
| 3 Years | ₹36.00 L | ₹46.53 L | 15.6% | -26.9% | 40.5% |
| 5 Years | ₹60.00 L | ₹88.27 L | 15.6% | -12.7% | 33.8% |
| 7 Years | ₹84.00 L | ₹1.55 Cr | 17.5% | 8.9% | 26.0% |
| 10 Years | ₹1.20 Cr | ₹2.90 Cr | 17.2% | 13.1% | 20.5% |
| 12 Years | ₹1.44 Cr | ₹3.70 Cr | 14.8% | 13.4% | 15.5% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | Category avg |
|---|---|---|
| 1 Year | 16.1% | 11.6% |
| 3 Years | 15.6% | 16.3% |
| 5 Years | 15.6% | 16.8% |
| 7 Years | 17.5% | 16.7% |
| 10 Years | 17.2% | 17.5% |
| 12 Years | 14.8% | 17.0% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 15.1% | 10.0% | -33.3% | 93.8% | 0.39 | 0.98 | 76% | — | — |
| 3 Years | 15.0% | 16.3% | -10.6% | 35.1% | 0.89 | 2.44 | 91% | — | — |
| 5 Years | 14.3% | 13.1% | -3.6% | 33.1% | 1.01 | 4.86 | 98% | — | — |
| 10 Years | 14.5% | 14.5% | 11.4% | 17.4% | 7.32 | — | 100% | — | — |
Calmar Ratio by Duration
| # | Stock | % of NAV |
|---|---|---|
| 1 | Mtar Technologies Limited | 4.06% |
| 2 | HDFC Bank Limited | 3.22% |
| 3 | Multi Commodity Exchange of India Ltd. | 3.00% |
| 4 | Reliance Industries Limited | 2.97% |
| 5 | GE Vernova T&D India Limited | 2.66% |
| 6 | Hindalco Industries Limited | 2.66% |
| 7 | ICICI Prudential AMC Ltd | 2.64% |
| 8 | Bharat Electronics Limited | 2.42% |
| 9 | Hindustan Aeronautics Limited | 2.40% |
| 10 | Larsen & Toubro Limited | 2.37% |