Invesco India Business Cycle Fund
Direct · GrowthAI Summary
Invesco India Business Cycle Fund delivered a 1Y SIP XIRR of 14.64%, outpacing the thematic category average of 11.71% by nearly 3 percentage points. Its 1Y rolling return mean of 15.21% and calendar year returns of 31.79% in 2025 and 7.82% in 2026 YTD indicate solid lump-sum performance as well. As a thematic fund, its returns are driven by business cycle positioning rather than broad market exposure.
The fund shows a shallow maximum drawdown of just -0.16% with a 37-day recovery, and only one drawdown event exceeding 10%, suggesting well-contained downside risk over the measured period. The Calmar Ratio of 0.9611 over 1Y reflects a reasonable balance between return and drawdown risk. However, the 152-day max drawdown duration indicates investors may need patience during prolonged recovery phases.
The portfolio is diversified across 35 holdings with the top 10 accounting for roughly 44% of NAV, led by Kotak Mahindra Bank (5.66%) and Sai Life Sciences (5.0%). Banks dominate at 20.6% of the portfolio, followed by Healthcare Services (11.7%) and Realty (10.9%), reflecting a cyclical tilt across financials, real estate, and consumption-linked sectors. This multi-sector spread aligns with the fund's business cycle mandate but introduces concentration in rate-sensitive sectors.
The fund's 1Y SIP XIRR of 14.64% comfortably beats the category average of 11.71%, indicating strong recent relative performance. However, longer-horizon category averages of 16.41% (3Y) to 17.5% (10Y) set a high bar that cannot be assessed from the available fund data. The strong 2025 return of 31.79% followed by a modest 7.82% in 2026 highlights the year-to-year variability typical of thematic strategies.
This fund suits investors with a high risk tolerance and an investment horizon of at least 5-7 years, as thematic funds can underperform for extended periods before cycle rotation rewards positioning. It is best used as a satellite allocation within a diversified portfolio rather than a core holding. Investors should be comfortable with sector concentration in banks, realty, and healthcare, which can amplify volatility during economic downturns.
- 1Y SIP XIRR of 14.64% outperforms the thematic category average of 11.71% by 2.93 percentage points
- Very shallow maximum drawdown of -0.16% with quick 37-day recovery, indicating strong downside containment
- Diversified 35-stock portfolio with a balanced cyclical spread across banks, healthcare, realty, and retailing
- Heavy sector concentration in Banks (20.6%), Realty (10.9%), and other rate-sensitive cyclicals increases vulnerability to interest rate and economic cycles
- Strong 2025 return of 31.79% followed by a muted 7.82% in 2026 YTD underscores the inconsistency inherent in thematic business cycle strategies
Generated on 21-10-2026, 3:02 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 | ₹12.79 L | 14.6% | -20.1% | 33.7% |
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 | 14.6% | 11.7% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 15.4% | 15.7% | 5.8% | 24.8% | 2.20 | 151.19 | 100% | — | — |
Calmar Ratio by Duration
| # | Stock | % of NAV |
|---|---|---|
| 1 | Kotak Mahindra Bank Ltd | 5.66% |
| 2 | Sai Life Sciences Limited | 5.00% |
| 3 | Larsen & Toubro Limited | 4.74% |
| 4 | Aditya Infotech Limited | 4.64% |
| 5 | DLF Limited | 4.54% |
| 6 | InterGlobe Aviation Limited | 4.41% |
| 7 | Prestige Estates Projects Limited | 3.93% |
| 8 | Apollo Hospitals Enterprise Limited | 3.88% |
| 9 | Eternal Limited | 3.59% |
| 10 | Axis Bank Limited | 3.57% |