ICICI Prudential Business Cycle Fund
Direct · GrowthAI Summary
ICICI Prudential Business Cycle Fund has delivered strong SIP XIRR of 22.19% over 3Y, well ahead of the category average of 16.26%, though its 5Y XIRR of 16.57% trails the category's 17.46%. Against the NIFTY 50, the fund shows consistent alpha across all periods, including 8.42% over 3Y and 8.59% over 5Y, with lump-sum CAGR of 13.97% versus the benchmark's 5.46% over 3Y. The 1Y XIRR of 11.03% modestly exceeds the category average of 10.68% despite a difficult 2026 calendar year return of -7.88%.
The fund exhibits strong downside protection with downside capture of 85.28% over 3Y and 80.9% over 5Y, meaning it falls significantly less than the NIFTY 50 in weak markets. Its beta has declined from 1.01 over 1Y to 0.84 over longer periods, indicating reduced market sensitivity over time. The Calmar ratio of 1.59 over 3Y reflects solid risk-adjusted returns, though three drawdown events exceeding 10% and a 155-day max drawdown duration with 101 days to recovery highlight meaningful interim volatility.
The portfolio is anchored in financials, with HDFC Bank (8.98%), ICICI Bank (7.67%), and Kotak Mahindra Bank (3.86%) making Banks the largest sector at 22.0% of NAV. Cyclical sectors dominate, including Automobiles (11.5%), Insurance (7.2%), Realty (5.7%), and Petroleum Products (5.4%), consistent with the business cycle mandate. With 70 total holdings and a top holding under 9%, the fund is reasonably diversified, though its thematic nature concentrates exposure in cyclical segments.
The fund's 3Y SIP XIRR of 22.19% outpaces the category average of 16.26% by nearly 6 percentage points, placing it among the stronger performers in the Sectoral/Thematic category. Its 5Y XIRR of 16.57% is slightly below the category's 17.46%, suggesting recent performance has been stronger than its longer-term record. Calendar year returns show good consistency in positive years, ranging from 10.55% in 2022 to 33.54% in 2023, though 2026 has been negative at -7.88%.
This fund suits investors with high risk tolerance seeking cyclical, sector-tilted exposure as a satellite holding rather than a core portfolio fund. A time horizon of at least 5 years is advisable given the thematic nature and the three historical drawdown events exceeding 10%. Investors should be comfortable with periods of underperformance, such as the current -7.88% calendar year return in 2026, and should cap allocation to a modest share of their equity portfolio.
- Consistent alpha over the NIFTY 50 across all measured periods, including 8.42% over 3Y and 8.59% over 5Y
- Strong downside capture of 80.9% over 5Y and 85.28% over 3Y, limiting losses in weak markets
- 3Y SIP XIRR of 22.19% significantly outperforms the category average of 16.26%
- 5Y SIP XIRR of 16.57% trails the category average of 17.46%, indicating weaker longer-term relative performance
- Concentration in cyclical sectors, with Banks at 22.0% and Automobiles at 11.5%, exposes investors to economic downturns
- Three drawdown events exceeding 10% and a 155-day max drawdown duration reflect meaningful downside volatility
Generated on 23-10-2026, 2:59 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 | ₹12.89 L | 18.6% | -17.5% | 65.1% |
| 3 Years | ₹36.00 L | ₹49.61 L | 22.3% | 1.7% | 36.3% |
| 5 Years | ₹60.00 L | ₹89.04 L | 16.9% | 11.3% | 22.3% |
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 | 18.6% | 14.3% | 10.6% | +4.4% |
| 3 Years | 22.3% | 11.0% | 16.2% | +11.3% |
| 5 Years | 16.9% | 10.4% | 17.4% | +6.5% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 19.3% | 14.5% | -8.7% | 58.9% | 0.83 | 5.80 | 97% | — | — |
| 3 Years | 22.9% | 23.5% | 13.3% | 28.7% | 4.79 | — | 100% | — | — |
| 5 Years | 18.0% | 18.1% | 13.2% | 22.0% | 5.65 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +3.72 | 1.01 | 101.8% | 96.9% | -8.9% | -12.4% |
| 3 Years | +8.27 | 0.91 | 96.2% | 85.7% | 13.9% | 5.6% |
| 5 Years | +8.32 | 0.85 | 91.8% | 81.2% | 13.2% | 4.6% |
| 7 Years | +7.21 | 0.84 | 90.9% | 79.8% | 13.7% | 6.5% |
| 10 Years | +4.58 | 0.84 | 90.9% | 79.8% | 9.4% | 4.5% |
| 12 Years | +3.59 | 0.84 | 90.9% | 79.8% | 7.8% | 3.7% |
| 15 Years | +2.63 | 0.84 | 90.9% | 79.8% | 6.2% | 3.0% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | HDFC Bank Ltd. | 8.98% |
| 2 | ICICI Bank Ltd. | 7.67% |
| 3 | Reliance Industries Ltd. | 5.36% |
| 4 | Larsen & Toubro Ltd. | 4.92% |
| 5 | Maruti Suzuki India Ltd. | 4.20% |
| 6 | Kotak Mahindra Bank Ltd. | 3.86% |
| 7 | DLF Ltd. | 3.12% |
| 8 | Bharti Airtel Ltd. | 2.88% |
| 9 | HDFC Life Insurance Company Ltd. | 2.88% |
| 10 | Mahindra & Mahindra Ltd. | 2.76% |