Quant Business Cycle Fund
Direct · GrowthAI Summary
The Quant Business Cycle Fund has delivered a 1-year XIRR of 13.23% and a 3-year XIRR of 6.59%, which are below the category averages of 14.1% and 16.82% respectively. However, on a lump-sum basis, the fund's 3-year rolling return of 17.99% is strong, and it has consistently outperformed the NIFTY 50 benchmark across all time horizons, with a 3-year CAGR of 14.87% versus the benchmark's 7.75%.
The fund exhibits moderate volatility with a beta of around 1.06-1.08 relative to the NIFTY 50, indicating slightly higher market sensitivity. It has experienced one drawdown event exceeding 10%, with a maximum drawdown of -29.25% that lasted 549 days and has not yet recovered, highlighting significant downside risk. The Calmar ratios of 0.45 (1Y) and 0.62 (3Y) suggest moderate risk-adjusted returns, but the prolonged drawdown recovery is a concern.
The fund is highly concentrated with only 11 holdings, with the top 10 accounting for nearly 70% of the portfolio. Top holdings include Piramal Finance (9.61%), Adani Green Energy (9.17%), and Aurobindo Pharma (9.16%), indicating a tilt towards financials, power, and pharmaceuticals. Sector concentration is notable, with the top five sectors (Pharma, Finance, Power, Telecom, IT) making up about 45% of the portfolio, which limits diversification.
The fund's XIRR performance lags the category averages significantly over both 1-year and 3-year periods, suggesting it has underperformed its sectoral/thematic peers. However, its lump-sum rolling returns are robust, and it has consistently beaten the NIFTY 50 with positive alpha across all durations, indicating strong stock selection. The fund's returns have been volatile, with a strong 2023 (41.45%) and 2024 (20.66%) but a negative 2025 (-5.67%), reflecting its cyclical nature.
This fund is suitable for investors with a high risk tolerance and a long-term investment horizon of at least 5-7 years, given its concentration and drawdown risk. It is best suited for those seeking exposure to business cycle themes and willing to accept significant volatility and potential prolonged drawdowns. Investors should be prepared for underperformance relative to category peers during certain market phases and should consider this as a satellite holding rather than a core portfolio component.
- Consistent outperformance over the NIFTY 50 benchmark across all time horizons, with positive alpha and higher upside capture (107-109%) while maintaining lower downside capture (88-95%) in most periods.
- Strong 3-year rolling return of 17.99% on a lump-sum basis, indicating good long-term compounding potential.
- Low expense ratio of 0.57% for a direct plan, which is competitive and enhances net returns.
- Significant underperformance versus category averages, with 1-year and 3-year XIRR trailing peers by 0.87% and 10.23% respectively.
- High concentration risk with only 11 holdings and a maximum drawdown of -29.25% that has not yet recovered after 549 days, indicating potential for deep and prolonged losses.
Generated on 30-08-2026, 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 | ₹12.17 L | 13.2% | -35.8% | 73.1% |
| 3 Years | ₹36.00 L | ₹39.73 L | 6.6% | -2.3% | 9.4% |
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 | 13.2% | 14.4% | 14.1% | -1.2% |
| 3 Years | 6.6% | 11.1% | 16.8% | -4.5% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 13.0% | 2.9% | -19.8% | 73.9% | 0.24 | 0.65 | 58% | — | — |
| 3 Years | 18.0% | 18.3% | 14.9% | 20.3% | 6.41 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +8.86 | 1.03 | 101.3% | 88.8% | 5.7% | -2.9% |
| 3 Years | +7.02 | 1.08 | 109.3% | 100.1% | 14.9% | 7.8% |
| 5 Years | +5.95 | 1.06 | 107.4% | 95.1% | 11.4% | 5.5% |
| 7 Years | +4.28 | 1.06 | 107.4% | 95.1% | 8.0% | 3.9% |
| 10 Years | +3.07 | 1.06 | 107.4% | 95.1% | 5.5% | 2.7% |
| 12 Years | +2.61 | 1.06 | 107.4% | 95.1% | 4.6% | 2.3% |
| 15 Years | +2.15 | 1.06 | 107.4% | 95.1% | 3.7% | 1.8% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Piramal Finance Ltd | 9.61% |
| 2 | Adani Green Energy Limited | 9.17% |
| 3 | Aurobindo Pharma Limited | 9.16% |
| 4 | Indus Towers Limited | 8.51% |
| 5 | Tech Mahindra Limited | 7.03% |
| 6 | Adani Enterprises Limited | 4.94% |
| 7 | Lloyds Metals And Energy Limited | 4.72% |
| 8 | Zydus Wellness Ltd | 4.47% |
| 9 | Samvardhana Motherson International Ltd | 4.18% |
| 10 | Tata Chemicals Ltd | 4.00% |