March 25, 2026
RA Jainee
HDFC Business Cycle Fund
| Fund at a Glance | |
| NAV Growth (Rs.) | 13.09 |
| NAV Bonus (Rs.) | |
| NAV IDCW (Rs.) | 13.09 |
| Min. Investment (Rs.) | 100 |
| Min. SIP Investment (Rs.) | 100 |
| Min. No of Cheques | 6 |
| Benchmark | NIFTY 500 TRI |
| AUM Rs. | 2,650 Cr |
| (As on 28-Feb-2026) | |
| Expense | 1.07% |
| 1 Year Return (%) | -5.83 |
| 3 Year Return (%) | 11.15 |
| 5 Year Return (%) | — |
| 10 Year Return (%) | — |
| Return Since Launch | 8.49% |
⚖️ Sahifund Review – HDFC Business Cycle Fund ✔
PLUS: Stability, track record, cost efficiency
✓ The fund follows a dynamic business cycle strategy, allowing it to shift sectors based on economic trends — a smart approach for long-term alpha generation.
✓ It offers diversification across 60+ stocks, reducing sector-specific risks despite being thematic.
✓ Balanced allocation across large, mid and small caps ensures portfolio flexibility and adaptability.
✓ Backed by the strong credibility of HDFC Mutual Fund, which adds comfort for long-term investors.
✓ Suitable for SIP investors looking to capture cyclical opportunities across sectors over time.
✓ Portfolio positioning indicates readiness to benefit when economic cycles turn favourable.
MINUS: Large AUM, large-cap bias, momentum lag
⚖️ 1-year return of -5.83% and underperformance vs benchmark indicate weak recent momentum.
⚖️ Even over 3 years, returns lag both benchmark and peers, highlighting inconsistent execution of strategy.
⚖️ High expense ratio of 1.07% reduces investor returns compared to competing funds.
⚖️ Turnover at 61% reflects frequent portfolio shifts, increasing execution risk.
⚖️ Being a thematic strategy, performance depends heavily on timing of business cycles, making it unpredictable.
⚖️ Compared to peers like ICICI Pru and Kotak, alpha generation has been relatively weak so far.
Sahifund View (Decisive Line):
A conceptually strong strategy fund, but inconsistent execution and high costs make it suitable only for patient investors willing to ride full market cycles.
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| NFO Guidance |
What lies ahead? Below we decode returns consistency, portfolio concentration, peer positioning and risk profile in detail.
Suitable For Which Investors?
Business Cycle funds are suitable for investors:
1. Seeking exposure in a diversified set of stocks with a focus on riding business cycles for high returns
2. Aiming for long term wealth creation
3. With a 5+ year investment horizon
4. Who are at ease with the market’s ups and downs
Note:
• Invest only through SIP
Fund’s Investment Strategy:
The scheme seeks to provide long-term capital appreciation by investing predominantly in equity and equity related securities with a focus on riding business cycles through dynamic allocation between various sectors and stocks at different stages of business cycles.
Fund Manager:
1) Rahul Baijal
Education: Mr. Baijal has done PGDM(MBA) from IIM Calcutta and is an engineering graduate of Delhi college of Engineering
Experience: Prior to joining HDFC Mutual Fund, he has worked with Sundaram Mutual Fund, Bharti AXA Life Insurance, TVF Capital, HSBC Securities, Credit Suisse Securities & Standard Chartered Bank.
Investment Details
| Min. Investment (Rs) | 100 |
| Min. Addl Investment (Rs) | 100 |
| Min. SIP Investment (Rs) | 100 |
| Min. Withdrawal (Rs) | — |
| Min. No of Cheques | 6 |
| Min. Balance (Rs) | — |
| Lock-in Period | NA |
| Exit Load | 1% for redemption within 365 days |
Basic Details of HDFC Business Cycle Fund
| Fund House | HDFC Mutual Fund |
| Launch Date | 30-Nov-22 |
| Return Since Launch | 8.49% |
| Benchmark | NIFTY 500 TRI |
| Riskometer | Very High |
| Type | Open-ended |
| Assets | 2,650 Cr |
| (As on 28-Feb-2026) | |
| Expense | 1.07% |
| (As on 28-Feb-2026) | |
| Risk Grade | — |
| Return Grade | — |
| Turnover | 61.10% |
HDFC Business Cycle Fund Returns
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| HDFC Business Cycle Dir | -14.00 | -3.39 | -12.68 | -14.31 | -16.37 | -5.83 | 11.15 | — | — | — |
| BSE 500 TRI | -13.43 | -3.13 | -12.05 | -13.50 | -11.36 | -2.27 | 13.51 | — | — | — |
| Equity: Thematic-Business Cycle | -12.96 | -3.16 | -11.91 | -13.19 | -12.64 | -2.21 | 15.31 | — | — | — |
| Rank within category | 14 | 12 | 13 | 15 | 16 | 15 | 8 | — | — | — |
| Number of funds in category | 18 | 19 | 18 | 18 | 18 | 18 | 8 | 2 | 1 | 1 |
Peer Comparison of HDFC Business Cycle Fund
| Rating | 1 Year Returns | 3 Year Returns | 5 Year Returns | Expense Ratio (%) | Net Assets (Rs Cr) | Return Since Launch (%) | Exit Load (Days) | Fund Age | Turnover (%) | |
| HDFC Business Cycle Dir | Unrated | -5.83 | 11.15 | — | 1.07 | 2,650 | 8.49 | 1.00 (365) | 3Y 3M | 61.10 |
| ICICI Pru Business Cycle Dir | Unrated | 2.61 | 19.88 | 17.44 | 0.73 | 16,202 | 18.30 | 1.00 (30) | 5Y 2M | 32.00 |
| Kotak Business Cycle Dir | Unrated | 1.57 | 15.98 | — | 0.63 | 3,054 | 12.58 | 0.50 (90) | 3Y 5M | 24.48 |
| Tata Business Cycle Dir | Unrated | -3.90 | 15.70 | — | 0.58 | 2,695 | 13.17 | 0.50 (30) | 4Y 7M | 58.01 |
| Axis Business Cycles Dir | Unrated | -1.99 | 15.23 | — | 0.93 | 2,145 | 14.48 | 1.00 (365) | 3Y 1M | 84.00 |
HDFC Business Cycle Fund Portfolio
| No. of Stocks | 61 |
| Top 10 Stocks | 44.66% |
| Top 5 Stocks | 27.55% |
| Top 3 Sectors | 57.69% |
| Portfolio P/B Ratio | 3.81 |
| Portfolio P/E Ratio | 31.06 |
Portfolio Breakup
| Fund | Category | |
| Average Mkt Cap (Rs Cr) | 120,194 | 127,675 |
| Giant (%) | — | — |
| Large (%) | 53.26 | 53.15 |
| Mid (%) | 22.54 | 24.25 |
| Small (%) | 24.20 | 22.59 |
| Tiny (%) | — | — |
Disclaimer: Mutual fund investments are subject to market risks. Read all scheme related documents carefully
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