Sundaram Business Cycle Fund
Direct · GrowthAI Summary
Sundaram Business Cycle Fund has delivered a 1Y SIP XIRR of 4.28%, well below the category average of 10.69%, indicating underperformance versus sectoral/thematic peers on SIP returns. However, on a lump-sum basis it has consistently beaten the NIFTY 50 across all periods, with positive alpha at every horizon — 8.55% over 1Y and 4.30% over 3Y — despite the benchmark posting negative CAGRs. Calendar year returns have been modest, ranging from -1.81% in 2026 to 8.68% in 2024.
The fund shows a maximum drawdown of just -0.19% over 193 days with a 101-day recovery, and only 2 drawdown events exceeding 10%, suggesting relatively contained downside historically. Its downside capture of 84.48% versus upside capture of 92.58% over 3Y indicates it loses less than the benchmark in falling markets, a favorable asymmetry. The 1Y Calmar ratio of 0.19 is modest, reflecting weak returns relative to drawdown risk in the recent period.
The portfolio holds 36 stocks with a well-spread top 10, each between 3.32% and 4.2% of NAV, led by Radico Khaitan, Eternal, and MTAR Technologies. Sector exposure is diversified across cyclical and consumption themes, with Electrical Equipment (13.4%), Industrial Products (10.6%), and Retailing (10.5%) as the top sectors. This breadth aligns with the business cycle mandate, avoiding single-stock or single-sector concentration risk.
The fund trails its category significantly on SIP XIRR, with 4.28% over 1Y versus the peer average of 10.69%, placing it in the lower tier of sectoral/thematic funds recently. Its consistent positive alpha over the NIFTY 50 across 1Y to 15Y horizons shows skill relative to the broad market, but this has not translated into category leadership. Long-term lump-sum CAGRs remain low in absolute terms, at 3.2% over 3Y and 1.91% over 5Y.
This fund suits investors with high risk tolerance seeking tactical, cycle-driven equity exposure as a satellite holding rather than a core portfolio fund. A long time horizon of 7-10 years is advisable given the low absolute returns over shorter windows and the thematic nature of the strategy. Investors should be comfortable with periods of significant underperformance versus both peers and absolute return expectations.
- Consistent positive alpha versus NIFTY 50 across all measured horizons, from 8.55% over 1Y to 0.51% over 15Y
- Favorable capture asymmetry with downside capture of 84.48% against upside capture of 92.58% over 3Y
- Diversified 36-stock portfolio with no single holding above 4.2% of NAV, reducing concentration risk
- 1Y SIP XIRR of 4.28% lags the category average of 10.69% by over 6 percentage points
- Absolute lump-sum returns are weak, with a 5Y CAGR of just 1.91% and a 1Y Fund CAGR of -3.46%
- Max drawdown duration of 193 days with a 101-day recovery indicates prolonged recovery periods after downturns
Generated on 21-10-2026, 3:10 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 | ₹12.47 L | 5.8% | -29.6% | 24.5% |
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 | 5.8% | 14.3% | 10.7% | -8.4% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 3.7% | 3.5% | -9.4% | 12.6% | -0.63 | -0.57 | 82% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +8.55 | 1.03 | 101.5% | 90.7% | -3.5% | -11.4% |
| 3 Years | +4.30 | 0.93 | 92.6% | 84.5% | 3.2% | -1.6% |
| 5 Years | +2.40 | 0.93 | 92.6% | 84.5% | 1.9% | -1.0% |
| 7 Years | +1.59 | 0.93 | 92.6% | 84.5% | 1.4% | -0.7% |
| 10 Years | +0.98 | 0.93 | 92.6% | 84.5% | 0.9% | -0.5% |
| 12 Years | +0.75 | 0.93 | 92.6% | 84.5% | 0.8% | -0.4% |
| 15 Years | +0.51 | 0.93 | 92.6% | 84.5% | 0.6% | -0.3% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Radico Khaitan Ltd | 4.20% |
| 2 | Eternal Ltd (Previously Zomato Ltd) | 4.00% |
| 3 | MTAR Technologies Ltd | 3.80% |
| 4 | One 97 Communications Ltd | 3.78% |
| 5 | TD Power Systems Ltd | 3.78% |
| 6 | Interglobe Aviation Ltd | 3.61% |
| 7 | Shriram Finance Ltd | 3.48% |
| 8 | FSN E–Commerce Ventures Ltd(NYKAA) | 3.39% |
| 9 | Kirloskar Oil Engines Ltd | 3.34% |
| 10 | Dhoot Transmission Ltd | 3.32% |