March 24, 2026
RA Jainee
Kotak Business Cycle Fund
Kotak Business Cycle Fund review: Should you invest in this business cycle mutual fund in 2026? In this detailed review, we analyse the latest NAV, returns, portfolio allocation, expense ratio, peer comparison, benchmark performance and risk profile to help investors make a smarter SIP decision.
Kotak Business Cycle Fund has gained investor attention due to its dynamic sector allocation strategy, diversified portfolio and benchmark-beating recent performance. But can this thematic fund deliver consistent long-term returns, and does it deserve a place in your portfolio? Let’s decode the fund in detail.
| Fund at a Glance | |
| NAV Growth (Rs.) | 15.57 |
| NAV Bonus (Rs.) | — |
| NAV IDCW (Rs.) | 15.57 |
| Min. Investment (Rs.) | 100 |
| Min. SIP Investment (Rs.) | 100 |
| Min. No of Cheques | 1 |
| Benchmark | NIFTY 500 TRI |
| AUM Rs. | 3,054 Cr |
| (As on 28-Feb-2026) | |
| Expense | 0.63% |
| 1 Year Return (%) | 5.93 |
| 3 Year Return (%) | 17.31 |
| 5 Year Return (%) | — |
| 10 Year Return (%) | — |
| Return Since Launch | 13.59% |
⚖️ Sahifund Review – Kotak Business Cycle Fund ✔
PLUS: Stability, track record, cost efficiency
Kotak Business Cycle Fund looks like a relatively balanced option for investors who want exposure to a dynamic thematic mutual fund without taking extremely concentrated sector risk. The fund has delivered a healthy 1-year return of 5.93% and a solid 3-year return of 17.31%, outperforming both the benchmark and category average over key periods. Its expense ratio of 0.63% is reasonable for an actively managed thematic strategy, which is positive for long-term SIP investors. The portfolio is diversified across 54 stocks, with a fairly balanced mix of large, mid and small caps, helping it avoid excessive dependence on a single segment. Backed by Kotak Mahindra Mutual Fund, the scheme benefits from strong AMC credibility and may suit investors seeking a business cycle fund for tactical long-term wealth creation.
MINUS: Large AUM, large-cap bias, momentum lag
That said, this is still a thematic business cycle fund, which means performance can vary sharply depending on sector rotation and economic trends. While the fund has done well, it still lags category leader ICICI Prudential Business Cycle Fund on both 1-year and 3-year performance, which matters for alpha-seeking investors. Since the fund is only around 3.5 years old, it still lacks a proper 5-year and 10-year track record, making it difficult to judge full-cycle consistency. The portfolio valuation also appears a bit richer, with a P/E of 29.81, which may leave less room for error if the market turns volatile. Though diversification is healthy, the fund remains exposed to cyclical volatility, so returns may not always be smooth for conservative investors.
Sahifund View (Decisive Line):
A sensible SIP-friendly thematic fund with balanced construction, but investors chasing category-leading alpha may find stronger alternatives in the business cycle space.
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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 generate 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 in the economy.
Fund Manager:
1) Harish Bihani
Education: Mr. Bihani has done MBA in Finance
Experience: Prior to joining Kotak Mutual Fund, he has worked with ICICI Prudential Mutual Fund, SBI Mutual Fund, Kotak Instituitional Equities, CIMB Securities, RBS Equities India Pvt. Ltd., Indiabulls Securities Ltd. and Reliance Equities International Pvt. Ltd.
2) Abhishek Bisen
Education: Mr. Bisen is a BA and MBA in Finance.
Experience: Prior to joining Kotak AMC, he was working with Securities Trading Corporation Of India Ltd where he was looking at Sales & Trading of Fixed Income Products apart from doing Portfolio Advisory. His earlier assignments also include 2 years of merchant banking experience with a leading merchant banking firm.
Investment Details
| Min. Investment (Rs) | 100 |
| Min. Addl Investment (Rs) | 100 |
| Min. SIP Investment (Rs) | 100 |
| Min. Withdrawal (Rs) | — |
| Min. No of Cheques | 1 |
| Min. Balance (Rs) | — |
| Lock-in Period | NA |
| Exit Load | 0.5% for redemption within 90 days |
Basic Details of Kotak Business Cycle Fund
| Fund House | Kotak Mahindra Mutual Fund |
| Launch Date | 28-Sep-22 |
| Return Since Launch | 13.59% |
| Benchmark | NIFTY 500 TRI |
| Riskometer | Very High |
| Type | Open-ended |
| Assets | 3,054 Cr |
| (As on 28-Feb-2026) | |
| Expense | 0.63% |
| (As on 28-Feb-2026) | |
| Risk Grade | — |
| Return Grade | — |
| Turnover | 24.48% |
Kotak Business Cycle Fund Returns
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| Kotak Business Cycle Dir | -10.65 | 0.23 | -8.2 | -9.73 | -11.77 | 5.93 | 17.31 | — | — | — |
| BSE 500 TRI | -10.64 | 0.51 | -8.85 | -9.92 | -9.11 | 1.84 | 14.95 | — | — | — |
| Equity: Thematic-Business Cycle | -10.02 | 0.4 | -8.6 | -9.6 | -10.43 | 2.16 | 16.78 | — | — | — |
| Rank within category | 13 | 14 | 7 | 12 | 13 | 4 | 3 | — | — | — |
| Number of funds in category | 18 | 19 | 18 | 18 | 18 | 18 | 8 | 2 | 1 | 1 |
Peer Comparison of Kotak 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 (%) | |
| Kotak Business Cycle Dir | Unrated | 5.93 | 17.31 | — | 0.63 | 3,054 | 13.59 | 0.50 (90) | 3Y 5M | 24.48 |
| ICICI Pru Business Cycle Dir | Unrated | 6.58 | 21.36 | 18.22 | 0.73 | 16,202 | 19.03 | 1.00 (30) | 5Y 2M | 32.00 |
| Tata Business Cycle Dir | Unrated | 0.37 | 17.31 | — | 0.58 | 2,695 | 14.05 | 0.50 (30) | 4Y 7M | 58.01 |
| HDFC Business Cycle Dir | Unrated | -1.31 | 12.69 | — | 1.07 | 2,650 | 9.65 | 1.00 (365) | 3Y 3M | 61.10 |
| Axis Business Cycles Dir | Unrated | 2.35 | 16.59 | — | 0.93 | 2,145 | 15.76 | 1.00 (365) | 3Y | 84.00 |
Kotak Business Cycle Fund Portfolio
| No. of Stocks | 54 |
| Top 10 Stocks | 34.66% |
| Top 5 Stocks | 20.86% |
| Top 3 Sectors | 52.40% |
| Portfolio P/B Ratio | 4.22 |
| Portfolio P/E Ratio | 29.81 |
Portfolio Breakup
| Fund | Category | |
| Average Mkt Cap (Rs Cr) | 1,07,047 | 1,27,675 |
| Giant (%) | — | — |
| Large (%) | 48.17 | 53.15 |
| Mid (%) | 23.47 | 24.25 |
| Small (%) | 28.36 | 22.59 |
| Tiny (%) | — | — |
Disclaimer: Mutual fund investments are subject to market risks. Read all scheme related documents carefully
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Kotak Business Cycle Fund details, NAV, Fund Portfolio, Peer Comparison, Fund Managers, Mutual Fund Guidance, mutual fund, Best funds to invest, Best Funds, Fund Returns, Fund Analysis
Kotak Business Cycle Fund may suit SIP investors who want exposure to sectors that can benefit from changing economic and business cycles. However, since it is a thematic fund, it should ideally be considered as a satellite allocation rather than a core portfolio holding
The expense ratio of Kotak Business Cycle Fund is 0.63% as of 28 February 2026.
Kotak Business Cycle Fund has delivered a 1-year return of 5.93%, which is stronger than both the benchmark and category average in the recent period.
Yes, the fund carries a Very High Risk label because it follows a thematic investment strategy linked to changing economic and sector cycles.
This fund may be suitable for investors who want a tactical equity mutual fund that can dynamically capture opportunities across sectors depending on the stage of the business cycle.
The benchmark of Kotak Business Cycle Fund is NIFTY 500 TRI.
Not necessarily. It may outperform during certain market phases, but diversified equity funds are generally more suitable for core long-term investing because they carry lower thematic risk.
Kotak Business Cycle Fund can be considered by investors looking for a balanced thematic allocation, but it is best used as a supplementary SIP investment rather than a standalone core equity fund.