Mahindra Manulife Business Cycle Fund
Direct · GrowthAI Summary
Mahindra Manulife Business Cycle Fund has delivered strong lump-sum performance versus the NIFTY 50, with a 3Y CAGR of 18.64% against the benchmark's 6.31% and positive alpha across all periods from 1Y (14.86%) to 15Y (2.43%). However, on the SIP XIRR metric, the fund trails its category, with 1Y XIRR of 12.70% versus the category average of 14.1% and 3Y XIRR of 12.59% versus 16.82%. Calendar year returns have been consistently positive, including 26.47% in 2024 and 15.14% in 2023.
The fund shows a favorable asymmetry profile, capturing 108.49% of benchmark upside while limiting downside capture to 93.31% over 3Y and beyond, with a 1Y downside capture of just 81.82%. Drawdown characteristics appear well contained, with only one drawdown event exceeding 10%, a maximum drawdown of just -0.21%, though recovery took 476 days. The 1Y Calmar ratio of 0.64 suggests moderate risk-adjusted efficiency relative to the depth and duration of its worst drawdown.
The portfolio holds 66 stocks with a diversified top-ten, led by Reliance Industries (4.05%), JSW Energy (3.46%), and Grasim Industries (3.13%), with no single holding above 4.05%. Banks is the largest sector exposure at 17.6%, followed by Pharmaceuticals (8.8%) and Power (8.2%), reflecting the fund's business cycle rotation approach across cyclical sectors like cement, autos, and energy. The low single-stock concentration reduces idiosyncratic risk, though the meaningful financials weighting adds sector-level cyclicality.
Against category peers, the fund underperforms on SIP XIRR at every available horizon, with 1Y at 12.70% versus 14.1% and 3Y at 12.59% versus 16.82%, a gap of roughly 4 percentage points. Its lump-sum record is far stronger, with alpha over the NIFTY 50 across all measured windows, indicating better outcomes for lump-sum investors than SIP investors relative to peers. The consistent positive calendar year returns from 2023 to 2026 suggest reasonable return consistency in recent years.
This fund suits investors with high risk tolerance seeking cyclical, economy-linked exposure, as sectoral/thematic funds carry concentrated mandate risk. A long time horizon of at least 5-7 years is advisable, given the long 476-day recovery from its maximum drawdown and the multi-year nature of business cycle rotations. It is best used as a satellite allocation within a diversified portfolio rather than a core holding, and lump-sum or staggered entry may have historically worked better than SIP relative to peers.
- Consistent positive alpha versus NIFTY 50 across all periods, with 3Y alpha of 12.34% and fund CAGR of 18.64% versus benchmark 6.31%
- Favorable capture asymmetry with 108.49% upside capture against 93.31% downside capture over 3Y, and only one drawdown event exceeding 10%
- Well-diversified 66-stock portfolio with no holding above 4.05% of NAV and a low 0.55% expense ratio in the Direct plan
- SIP XIRR lags the category average at every horizon, with 3Y XIRR of 12.59% versus the category's 16.82%, a shortfall of over 4 percentage points
- Long recovery period of 476 days from maximum drawdown and a 1Y Calmar ratio of 0.64 indicate extended underwater periods are possible
Generated on 10-09-2026, 3:01 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 | ₹12.51 L | 12.7% | -24.5% | 75.7% |
| 3 Years | ₹36.00 L | ₹43.03 L | 12.6% | 12.0% | 12.9% |
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 | 12.7% | 14.4% | 14.1% | -1.7% |
| 3 Years | 12.6% | 11.1% | 16.8% | +1.5% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 13.7% | 8.4% | -9.2% | 64.3% | 0.42 | 1.61 | 86% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +14.86 | 0.96 | 101.7% | 81.8% | 12.4% | -2.9% |
| 3 Years | +12.34 | 1.03 | 108.5% | 93.3% | 18.6% | 6.3% |
| 5 Years | +7.15 | 1.03 | 108.5% | 93.3% | 10.8% | 3.7% |
| 7 Years | +5.07 | 1.03 | 108.5% | 93.3% | 7.6% | 2.7% |
| 10 Years | +3.57 | 1.03 | 108.5% | 93.3% | 5.3% | 1.9% |
| 12 Years | +3.00 | 1.03 | 108.5% | 93.3% | 4.4% | 1.5% |
| 15 Years | +2.43 | 1.03 | 108.5% | 93.3% | 3.5% | 1.2% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Reliance Industries Limited | 4.05% |
| 2 | JSW Energy Limited | 3.46% |
| 3 | Grasim Industries Limited | 3.13% |
| 4 | ICICI Bank Limited | 3.09% |
| 5 | Axis Bank Limited | 2.87% |
| 6 | Bajaj Auto Limited | 2.66% |
| 7 | Adani Enterprises Limited | 2.50% |
| 8 | IndusInd Bank Limited | 2.49% |
| 9 | Infosys Limited | 2.49% |
| 10 | Bandhan Bank Limited | 2.39% |