Union Business Cycle Fund
Direct · GrowthAI Summary
Union Business Cycle Fund has delivered a 1Y SIP XIRR of 3.81%, well below the category average of 14.1%, indicating significant underperformance versus sectoral/thematic peers. However, on a lump-sum basis the fund has beaten the NIFTY 50 across all periods, with a 1Y Fund CAGR of 8.38% against the benchmark's -2.9% and a strong 1Y alpha of 11.67%. Calendar year returns have been positive but modest, ranging from 2.46% in 2025 to 13.63% in 2024.
The fund shows only one major drawdown event (>10%) with a maximum drawdown of about -19.9%, which took 489 days to recover from a 158-day trough, highlighting meaningful recovery risk. A Calmar ratio of 0.195 over 1Y suggests modest risk-adjusted returns relative to the drawdown endured. Beta of roughly 1.03-1.04 with a downside capture of 93-95% indicates the fund has historically fallen slightly less than the NIFTY 50 while capturing slightly more upside.
The portfolio is diversified across 57 holdings, with banks dominating at 24.4% of assets, led by ICICI Bank at 8.97% along with HDFC Bank, Axis Bank, and SBI. The top 10 holdings account for roughly 35% of NAV, providing reasonable diversification beyond the financials-heavy core. Exposure spans construction, pharma, IT, and auto components, consistent with a business cycle theme that rotates across economically sensitive sectors.
The fund's 1Y SIP XIRR of 3.81% trails the category average of 14.1% by a wide margin, placing it among the weaker performers among sectoral/thematic peers. Its consistent outperformance versus the NIFTY 50 benchmark across 1Y to 15Y windows shows benchmark-beating ability, but this has not translated into peer-beating SIP returns. The shrinking alpha over longer horizons (from 11.67% at 1Y to 0.99% at 15Y) suggests the edge is concentrated in recent periods.
This fund suits investors with high risk tolerance who already hold a diversified core portfolio and want a tactical, cyclical-sector satellite allocation. Given the long drawdown recovery of 489 days and thematic concentration, a horizon of at least 5-7 years is advisable. Investors should be comfortable with periods of significant underperformance versus both the benchmark and category peers.
- Consistent outperformance versus NIFTY 50 across all measured periods, with positive alpha even at 15 years (0.99%)
- Favorable capture profile, with upside capture above 102% and downside capture below 95% versus the benchmark
- Diversified 57-stock portfolio with a reasonable top-10 weight of about 35% of NAV
- 1Y SIP XIRR of 3.81% is far below the category average of 14.1%, indicating weak peer-relative performance
- Maximum drawdown of about -19.9% required 489 days to recover, and the 1Y Calmar ratio of 0.195 signals modest risk-adjusted returns
- Heavy 24.4% allocation to banks creates significant sector concentration risk within a thematic mandate
Generated on 09-09-2026, 3:37 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 | ₹12.33 L | 3.4% | -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 | 3.4% | 14.4% | 14.1% | -11.1% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 3.9% | 3.9% | -6.7% | 18.7% | -0.51 | -0.51 | 73% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +11.67 | 1.04 | 108.5% | 93.2% | 8.4% | -2.9% |
| 3 Years | +4.49 | 1.03 | 102.1% | 95.1% | 7.6% | 3.2% |
| 5 Years | +2.71 | 1.03 | 102.1% | 95.1% | 4.5% | 1.9% |
| 7 Years | +1.96 | 1.03 | 102.1% | 95.1% | 3.2% | 1.4% |
| 10 Years | +1.42 | 1.03 | 102.1% | 95.1% | 2.2% | 0.9% |
| 12 Years | +1.21 | 1.03 | 102.1% | 95.1% | 1.8% | 0.8% |
| 15 Years | +0.99 | 1.03 | 102.1% | 95.1% | 1.5% | 0.6% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | ICICI Bank Ltd. | 8.97% |
| 2 | Larsen & Toubro Ltd. | 4.20% |
| 3 | HDFC Bank Ltd. | 4.12% |
| 4 | Axis Bank Ltd. | 3.19% |
| 5 | State Bank of India | 3.05% |
| 6 | One 97 Communications Ltd. | 2.63% |
| 7 | Ujjivan Small Finance Bank Ltd. | 2.55% |
| 8 | Reliance Industries Ltd. | 2.23% |
| 9 | Tech Mahindra Ltd. | 2.23% |
| 10 | Sona Blw Precision Forgings Ltd. | 2.23% |