ICICI Prudential Business Cycle Fund
Direct · GrowthAI Summary
ICICI Prudential Business Cycle Fund has delivered strong SIP returns of 23.42% over 3Y and 17.76% over 5Y, well ahead of the category average SIP XIRR of 16.82% and 16.95% respectively. Against the NIFTY 50, the fund shows consistent outperformance with alpha of 9.79% over 3Y and 9.73% over 5Y, and a 3Y fund CAGR of 17.51% versus the benchmark's 7.84%. The 1Y XIRR of 19.59% also exceeds the category average of 14.1%, indicating recent momentum remains intact.
The fund exhibits a favorable risk profile with a maximum drawdown of just -0.14% and a Calmar ratio of 1.63 over 3Y, reflecting strong risk-adjusted returns. Downside capture has improved structurally, falling from 94.02% over 1Y to 80.0% over 5Y and 78.94% over longer horizons, meaning the fund loses significantly less than the NIFTY 50 in weak markets. However, three drawdown events exceeding 10% have occurred historically, and the 155-day max drawdown duration with a 101-day recovery indicates investors should expect meaningful interim volatility.
The portfolio is anchored in financials, with Banks alone at 21.8% across holdings like HDFC Bank (9.24%), ICICI Bank (7.63%), and Kotak Mahindra Bank (3.54%), plus Insurance at 6.8%. Cyclical sectors dominate, including Automobiles at 11.8%, Realty at 5.5%, and Construction exposure via Larsen & Toubro at 5.21%, consistent with the business cycle mandate. With 70 total holdings and a top-10 concentration of roughly 47.3%, diversification is reasonable, though the heavy banking and cyclical tilt concentrates sector risk.
The fund outperforms the Sectoral/Thematic category average SIP XIRR across all listed horizons, including 19.59% vs 14.1% over 1Y and 23.42% vs 16.82% over 3Y. Its low beta of 0.85-0.91 combined with high alpha suggests the outperformance comes from stock selection and cycle positioning rather than leverage to market direction. Calendar year returns have been consistently positive from 2021 through 2025, ranging from 10.55% to 33.54%, though 2026 is currently negative at -2.59%.
This fund suits investors with a high risk tolerance and an investment horizon of at least 5 years, given its thematic mandate and cyclical sector concentration. It is appropriate as a satellite allocation for investors who already hold diversified core funds, rather than a standalone portfolio holding. Investors should be comfortable with sector-driven volatility and the possibility of extended drawdown periods during economic downturns.
- Consistent alpha generation versus NIFTY 50, with 9.79% alpha over 3Y and 9.73% over 5Y
- Superior SIP XIRR versus category averages across 1Y, 3Y, and 5Y horizons
- Strong downside protection with downside capture of 80.0% over 5Y and 78.94% over longer periods
- Heavy concentration in Banks at 21.8% of the portfolio creates significant financial sector risk
- Cyclical sector tilt (Automobiles, Realty, Construction) makes performance sensitive to economic downturns, as reflected in the negative -2.59% return in 2026 so far
Generated on 11-09-2026, 3:20 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 | ₹12.92 L | 19.6% | -17.5% | 65.1% |
| 3 Years | ₹36.00 L | ₹49.87 L | 23.4% | 6.7% | 36.3% |
| 5 Years | ₹60.00 L | ₹90.01 L | 17.8% | 13.8% | 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 | 19.6% | 14.4% | 14.1% | +5.2% |
| 3 Years | 23.4% | 11.1% | 16.8% | +12.3% |
| 5 Years | 17.8% | 10.4% | 16.9% | +7.3% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 20.2% | 15.2% | -1.5% | 58.9% | 0.91 | 11.39 | 100% | — | — |
| 3 Years | 23.4% | 23.7% | 16.5% | 28.7% | 6.12 | — | 100% | — | — |
| 5 Years | 18.8% | 18.3% | 16.5% | 22.0% | 9.00 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +4.88 | 1.01 | 101.1% | 94.0% | 2.4% | -2.4% |
| 3 Years | +9.79 | 0.91 | 97.2% | 84.6% | 17.5% | 7.8% |
| 5 Years | +9.73 | 0.85 | 91.8% | 80.0% | 17.4% | 7.9% |
| 7 Years | +7.69 | 0.84 | 90.9% | 78.9% | 15.0% | 7.5% |
| 10 Years | +4.89 | 0.84 | 90.9% | 78.9% | 10.3% | 5.2% |
| 12 Years | +3.84 | 0.84 | 90.9% | 78.9% | 8.5% | 4.3% |
| 15 Years | +2.82 | 0.84 | 90.9% | 78.9% | 6.8% | 3.4% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | HDFC Bank Ltd. | 9.24% |
| 2 | ICICI Bank Ltd. | 7.63% |
| 3 | Reliance Industries Ltd. | 5.40% |
| 4 | Larsen & Toubro Ltd. | 5.21% |
| 5 | Maruti Suzuki India Ltd. | 4.34% |
| 6 | Kotak Mahindra Bank Ltd. | 3.54% |
| 7 | Bharti Airtel Ltd. | 3.39% |
| 8 | DLF Ltd. | 2.93% |
| 9 | Mahindra & Mahindra Ltd. | 2.81% |
| 10 | HDFC Life Insurance Company Ltd. | 2.79% |