Kotak Business Cycle
Direct · GrowthAI Summary
Kotak Business Cycle has delivered strong benchmark outperformance, with a 1Y SIP XIRR of 19.66% and 3Y XIRR of 14.53%. Against the NIFTY 50, the fund generated double-digit alpha across all periods, including 10.82% over 1Y and 10.17% over 3Y, with a 3Y lump-sum CAGR of 17.81% versus the benchmark's 7.75%. However, its 3Y XIRR of 14.53% trails the category average SIP XIRR of 16.82%, indicating mid-tier positioning among sectoral/thematic peers despite beating the broad market.
The fund exhibits defensive characteristics with a beta below 1 across all periods (0.89-0.95) and consistently low downside capture, ranging from 80.43% over 15Y to 84.07% over 1Y. Risk-adjusted returns are solid, with Calmar ratios near 1.0 at both 1Y (1.0563) and 3Y (1.0009), and only 2 drawdown events exceeding 10%. The maximum drawdown recovery took 169 days after a 161-day drawdown duration, suggesting moderate but manageable drawdown episodes.
As a business cycle thematic fund, the portfolio rotates across sectors based on macroeconomic cycles rather than holding a fixed sector allocation, which provides dynamic diversification but introduces timing risk. No specific holdings data was provided, so investors should review the latest factsheet for current sector and stock concentration. The sub-1 beta and low downside capture suggest the current portfolio is not aggressively concentrated in high-volatility cyclicals.
The fund's 1Y XIRR of 19.66% comfortably beats the category average of 14.1%, but its 3Y XIRR of 14.53% lags the category's 16.82%, showing uneven relative performance across horizons. Calendar year returns reveal volatility in consistency, with 29.13% in 2024 and 24.38% in 2023 but only 0.49% in 2022 and around 6% in 2025 and 2026. Long-term alpha persistence is positive but declining, with alpha narrowing from 6.13% at 5Y to 1.42% at 15Y.
This fund suits investors with high risk tolerance seeking tactical, cycle-based equity exposure as a satellite holding rather than a core portfolio fund, given its sectoral/thematic classification. A time horizon of at least 5-7 years is advisable to allow business cycle rotations to play out, and investors should be prepared for year-to-year return variability. It is appropriate for those comfortable with thematic concentration risk but who value the fund's demonstrated downside protection.
- Consistent double-digit alpha versus NIFTY 50 across all measured periods, including 10.82% over 1Y and 10.17% over 3Y
- Strong downside protection with downside capture of 80-84% and beta below 1 across all periods
- Healthy risk-adjusted returns with Calmar ratios above 1.0 at both 1Y and 3Y horizons
- 3Y SIP XIRR of 14.53% trails the category average of 16.82%, indicating underperformance versus thematic peers
- Declining long-term alpha trend, narrowing from 6.13% at 5Y to 1.42% at 15Y, raises questions about sustained outperformance
Generated on 11-09-2026, 3:08 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 | ₹12.93 L | 19.7% | -20.3% | 62.6% |
| 3 Years | ₹36.00 L | ₹43.79 L | 14.5% | 4.4% | 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 | 19.7% | 14.4% | 14.1% | +5.2% |
| 3 Years | 14.5% | 11.1% | 16.8% | +3.4% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 19.5% | 14.6% | -1.2% | 47.1% | 0.98 | 11.57 | 100% | — | — |
| 3 Years | 18.4% | 18.5% | 15.7% | 20.6% | 10.15 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +10.82 | 0.95 | 99.0% | 84.1% | 8.3% | -2.9% |
| 3 Years | +10.17 | 0.91 | 96.7% | 83.4% | 17.8% | 7.8% |
| 5 Years | +6.13 | 0.89 | 92.2% | 80.4% | 13.0% | 6.9% |
| 7 Years | +4.05 | 0.89 | 92.2% | 80.4% | 9.1% | 4.9% |
| 10 Years | +2.54 | 0.89 | 92.2% | 80.4% | 6.3% | 3.4% |
| 12 Years | +1.98 | 0.89 | 92.2% | 80.4% | 5.2% | 2.8% |
| 15 Years | +1.42 | 0.89 | 92.2% | 80.4% | 4.2% | 2.2% |