Union Business Cycle Fund
Direct · GrowthAI Summary
Union Business Cycle Fund has underperformed its category on SIP returns, with a 1Y XIRR of 4.87% versus the category average of 10.6%. However, on a lump-sum basis it has consistently beaten the NIFTY 50 across all periods, with 1Y Fund CAGR of -5.15% versus the benchmark's -12.37% and positive alpha at every horizon (7.33% at 1Y, 3.33% at 3Y, 2.01% at 5Y). Recent calendar year returns have been muted, with -4.1% in 2026 and 2.46% in 2025 after a strong 13.63% in 2024.
The fund shows a beta of roughly 1.01, moving in line with the NIFTY 50, but with a favorable downside capture of 91.95-94.68% versus upside capture near 100%, indicating better-than-market loss protection. Its maximum drawdown was modest at -0.20% over 158 days, though recovery took 489 days, and only one drawdown event exceeded 10%. The 1Y Calmar ratio of 0.19 is low, suggesting weak risk-adjusted returns over the past year.
The portfolio is well diversified across 58 holdings, with the top position ICICI Bank at just 6.43% of NAV. Banks is the largest sector at 17.4%, followed by Pharmaceuticals (6.8%), Construction (6.5%), Finance (6.2%), and IT-Software (6.0%), so no single sector dominates excessively. The fund holds a mix of financials, cyclicals like L&T and BHEL, and growth names such as One 97 Communications and Coforge, consistent with a business cycle approach.
The fund trails its sectoral/thematic peers significantly on SIP XIRR, with 4.87% over 1Y versus the category average of 10.6%. Its consistent positive alpha over the NIFTY 50 across 1Y to 15Y horizons shows skillful benchmark-relative performance, but category peers have delivered far higher SIP returns (16%+ over 3Y-10Y). This suggests the fund is more benchmark-defensive than aggressive within a cyclical theme.
This fund suits investors who want cyclical, economy-linked equity exposure as a satellite allocation rather than a core holding, given the sectoral/thematic classification and modest recent SIP returns. A horizon of at least 5-7 years is appropriate to allow business cycle rotations to play out, and investors should tolerate periods of underperformance versus category peers. It is best paired with diversified funds rather than used as a standalone equity investment.
- Consistent positive alpha over NIFTY 50 across all horizons, from 7.33% at 1Y to 0.70% at 15Y
- Favorable downside capture of 91.95-94.68% versus near-100% upside capture, cushioning market declines
- Well diversified portfolio of 58 holdings with the top stock at only 6.43% of NAV
- 1Y SIP XIRR of 4.87% is well below the category average of 10.6%, indicating underperformance versus thematic peers
- Low 1Y Calmar ratio of 0.19 and a long 489-day recovery from maximum drawdown point to weak recent risk-adjusted returns
Generated on 30-10-2026, 2:12 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 | ₹12.32 L | 3.5% | -23.9% | 18.2% |
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 | 3.5% | 14.3% | 10.6% | -10.8% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 3.8% | 3.7% | -6.7% | 18.7% | -0.53 | -0.52 | 73% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +9.41 | 1.00 | 101.4% | 89.5% | -2.6% | -12.0% |
| 3 Years | +4.01 | 1.01 | 99.5% | 93.6% | 5.3% | 1.4% |
| 5 Years | +2.40 | 1.01 | 99.5% | 93.6% | 3.2% | 0.8% |
| 7 Years | +1.72 | 1.01 | 99.5% | 93.6% | 2.3% | 0.6% |
| 10 Years | +1.23 | 1.01 | 99.5% | 93.6% | 1.6% | 0.4% |
| 12 Years | +1.03 | 1.01 | 99.5% | 93.6% | 1.3% | 0.3% |
| 15 Years | +0.84 | 1.01 | 99.5% | 93.6% | 1.1% | 0.3% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | ICICI Bank Ltd. | 6.43% |
| 2 | Larsen & Toubro Ltd. | 4.24% |
| 3 | One 97 Communications Ltd. | 3.32% |
| 4 | Axis Bank Ltd. | 3.05% |
| 5 | Shriram Finance Ltd. | 2.79% |
| 6 | HDFC Bank Ltd. | 2.75% |
| 7 | Coforge Ltd. | 2.48% |
| 8 | Sona Blw Precision Forgings Ltd. | 2.32% |
| 9 | Bharat Heavy Electricals Ltd. | 2.28% |
| 10 | Solar Industries India Ltd. | 2.20% |