Union Active Momentum Fund

Union Active Momentum Fund delivered a 1Y SIP XIRR of 5.09%, significantly below the category average of 14.1%, indicating underperformance versus sectoral/thematic peers on the primary return metric. Against the NIFTY 50, the fund posted a 1Y CAGR of 16.74% versus the benchmark's -2.9%, generating a strong alpha of 19.86%. Calendar year returns have been volatile, ranging from -14.75% in 2025 to 16.08% in 2026.

The fund shows a maximum drawdown of just -0.27% with a 56-day duration that has not yet fully recovered, alongside one drawdown event exceeding 10%, suggesting recent volatility has been contained. A 1Y Calmar Ratio of 0.1897 indicates modest risk-adjusted returns relative to the drawdown taken. The 1Y rolling return mean of -0.06% on a lump-sum basis contrasts with the positive SIP XIRR, highlighting sensitivity to entry timing.

The portfolio holds 38 stocks with a well-distributed top 10, where the largest position, Torrent Pharmaceuticals, is only 4.8% of NAV, limiting single-stock concentration. Pharmaceuticals & Biotechnology dominates at 25.2% of the portfolio, followed by Auto Components (10.3%) and Industrial Products (9.9%), reflecting a momentum-driven tilt toward defensive and manufacturing themes. Holdings span diverse sectors including electrical equipment, aerospace & defense, and IT hardware, providing reasonable breadth despite the thematic mandate.

The fund's 1Y SIP XIRR of 5.09% trails the category average of 14.1% by a wide margin, placing it in the lower tier of sectoral/thematic peers over the recent period. Longer-term benchmark data show marginal alphas (0.25% to 0.39% across 3Y to 15Y windows) with near-identical CAGRs to the NIFTY 50, suggesting limited sustained outperformance. Consistency has been uneven, with the -14.75% calendar year return in 2025 underscoring the volatility typical of momentum strategies.

This fund suits aggressive investors with high risk tolerance who want tactical, momentum-oriented exposure as a satellite holding rather than a core portfolio position. A horizon of at least 5 years is advisable given the sharp year-to-year swings and the fund's underperformance versus its category over the recent 1-year window. Investors should be comfortable with sector concentration risk, particularly the 25.2% pharmaceuticals allocation, and should size the position modestly within a diversified portfolio.

• Strong 1Y alpha of 19.86% against the NIFTY 50, with the fund's 16.74% CAGR versus the benchmark's -2.9%
• Favorable capture profile with 101.2% upside capture and only 76.21% downside capture over 1Y
• Diversified 38-stock portfolio with a low top-holding weight of 4.8%, limiting single-stock risk

• 1Y SIP XIRR of 5.09% is well below the category average of 14.1%, indicating significant underperformance versus peers
• Heavy sector concentration in Pharmaceuticals & Biotechnology at 25.2% of NAV creates theme-specific risk
• Negative 1Y rolling return mean of -0.06% and a -14.75% calendar year return in 2025 highlight high return volatility