Sundaram Business Cycle Fund
Direct · GrowthAI Summary
The Sundaram Business Cycle Fund has delivered a 1-year XIRR of 4.73%, which is significantly below the category average of 14.1% for the same period. Over the same 1-year horizon, the fund's CAGR of 7.74% outperformed the NIFTY 50 benchmark's -2.9%, resulting in a positive alpha of 11.16%. However, the fund's longer-term CAGRs (3.6% over 5 years, 1.78% over 10 years) are modest and only slightly above the benchmark's near-zero returns.
The fund has experienced a maximum drawdown of -19.49%, with an average drawdown of -4.43% and two drawdown events exceeding 10%, indicating meaningful downside risk. The maximum drawdown duration was 193 days, and recovery took 101 days, showing a moderate recovery period. The 1-year Calmar ratio of 0.19 suggests low risk-adjusted returns relative to the drawdown experienced.
The fund holds 33 stocks with a top-10 concentration of about 41.3% of NAV, led by Radico Khaitan (5.32%) and Eternal Ltd (4.66%). Sector-wise, the fund is heavily tilted towards Electrical Equipment (10.3%), Finance (10.2%), and IT Software (9.7%), indicating a thematic focus on cyclical and growth sectors. The portfolio includes a mix of consumer, finance, and technology names, but the high concentration in top holdings and sectors may limit diversification.
The fund's 1-year XIRR of 4.73% is far below the category average of 14.1%, placing it in the lower quartile of its peer group. Over longer horizons, the fund's CAGR (e.g., 3.6% over 5 years) is also well below the category average SIP XIRR of 16.95% for the same period, indicating persistent underperformance. The fund has shown positive alpha versus the NIFTY 50 across all time frames, but this has not translated into competitive returns relative to its sectoral/thematic peers.
This fund is suitable for investors with a high risk tolerance and a long-term horizon (7+ years) who are comfortable with thematic volatility and sector concentration. It may appeal to those seeking exposure to business cycle opportunities, but given its underperformance versus the category, it is not ideal for investors seeking consistent top-quartile returns. Investors should be prepared for significant drawdowns and periods of underperformance, and should consider this fund as a satellite allocation rather than a core holding.
- Positive alpha versus NIFTY 50 across all time periods, with a 1-year alpha of 11.16%.
- Lower downside capture (92.34% over 1 year) than upside capture (106.61%), indicating some downside protection in rising markets.
- Diversified across 33 holdings with a mix of consumer, finance, and technology sectors, reducing single-stock risk.
- Significant underperformance versus the category average, with 1-year XIRR of 4.73% versus 14.1% for peers.
- High maximum drawdown of -19.49% and two drawdown events exceeding 10%, indicating elevated volatility and risk.
Generated on 29-08-2026, 3:06 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 | ₹12.44 L | 4.7% | -29.6% | 22.6% |
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 | 4.7% | 14.4% | 14.1% | -9.7% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 3.8% | 3.7% | -9.4% | 12.6% | -0.61 | -0.55 | 82% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +11.16 | 1.06 | 106.6% | 92.3% | 7.7% | -2.9% |
| 3 Years | +5.55 | 0.94 | 95.4% | 84.5% | 6.1% | 0.1% |
| 5 Years | +3.14 | 0.94 | 95.4% | 84.5% | 3.6% | 0.1% |
| 7 Years | +2.12 | 0.94 | 95.4% | 84.5% | 2.6% | 0.1% |
| 10 Years | +1.36 | 0.94 | 95.4% | 84.5% | 1.8% | 0.1% |
| 12 Years | +1.07 | 0.94 | 95.4% | 84.5% | 1.5% | 0.0% |
| 15 Years | +0.79 | 0.94 | 95.4% | 84.5% | 1.2% | 0.0% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Radico Khaitan Ltd | 5.32% |
| 2 | Eternal Ltd (Previously Zomato Ltd) | 4.66% |
| 3 | Oracle Financial Services Software Ltd | 4.50% |
| 4 | Kalyan Jewellers India Ltd | 4.06% |
| 5 | TD Power Systems Ltd | 4.01% |
| 6 | Interglobe Aviation Ltd | 3.86% |
| 7 | Shriram Finance Ltd | 3.82% |
| 8 | Five-Star Business Finance Ltd | 3.82% |
| 9 | FSN E–Commerce Ventures Ltd(NYKAA) | 3.64% |
| 10 | Delhivery Ltd | 3.63% |