Best Business Cycle Funds
Rotates sectors to ride the phases of the economic cycle.
Data updated · 19 direct-growth funds ranked by a transparent 0–100 Smart Score
| ⚖ VS | Fund | Score ↓ | Verdict | 1Y | 3Y | 5Y | Sharpe | Sortino | Std Dev | Alpha | Beta | VR★ | P/E | Expense | AUM | Age |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Kotak BusIness Cycle Kotak | 84 | Strong Buy | 2.7% | 15.3% | — | 0.66 | 0.87 | 15.6 | 5.2 | 0.93 | — | 29.1 | 0.77% | ₹3.4k Cr | 4.1y | |
| ICICI Pru BusIness Cycle ICICI Pru | 76 | Buy | -5.6% | 14.0% | 13.7% | 0.60 | 0.81 | 14.6 | 3.9 | 0.88 | — | 22.3 | 1.01% | ₹14.9k Cr | 5.7y | |
| Invesco India BusIness Cycle Invesco | 76 | Buy | 6.4% | — | — | 1.08 | 1.60 | 17.5 | 15.6 | 1.15 | — | 34.9 | 0.83% | ₹1.4k Cr | 1.6y | |
| Mahindra Manulife Business Cycle Mahindra Manulife | 75 | Buy | 1.4% | 15.7% | — | 0.68 | 0.77 | 16.8 | 5.8 | 1.02 | — | 19.9 | 0.93% | ₹1.3k Cr | 3.1y | |
| HSBC BusIness Cycles HSBC | 60 | Hold | -0.9% | 15.1% | 13.3% | 0.55 | 0.63 | 20.6 | 4.8 | 1.18 | 2★ | 31.7 | 1.12% | ₹1.2k Cr | 12.2y | |
| Axis BusIness Cycles Axis | 54 | Hold | -0.1% | 12.4% | — | 0.49 | 0.53 | 16.3 | 2.5 | 1.00 | — | 28.4 | 1.60% | ₹2.0k Cr | 3.7y | |
| Sundaram BusIness Cycle Sundaram | 51 | Hold | -2.0% | — | — | -0.11 | -0.16 | 14.9 | 3.1 | 0.97 | — | 41.6 | 1.15% | ₹1.7k Cr | 2.3y | |
| ABSL BusIness Cycle Aditya Birla Sun Life | 50 | Hold | 1.6% | 11.7% | — | 0.47 | 0.52 | 15.5 | 2.0 | 0.95 | — | — | 1.65% | ₹1.7k Cr | 4.9y | |
| HDFC BusIness Cycle HDFC | 46 | Hold | -2.2% | 10.1% | — | 0.39 | 0.35 | 15.4 | 0.9 | 0.93 | — | 30.9 | 1.14% | ₹2.6k Cr | 3.9y | |
| DSP BusIness Cycle DSP | 43 | Avoid | -1.8% | — | — | -0.40 | -0.54 | 13.8 | 0.2 | 0.92 | — | 20.4 | 1.17% | ₹1.5k Cr | 1.8y | |
| Baroda BNP Paribas BusIness Cycle Baroda BNP Paribas | 41 | Avoid | 0.0% | 12.0% | 10.1% | 0.45 | 0.54 | 16.3 | 1.9 | 1.00 | — | 27.4 | 1.04% | ₹535 Cr | 5.1y | |
| Bandhan BusIness Cycle Bandhan | 39 | Avoid | -5.0% | — | — | -0.49 | -0.67 | 15.3 | 0.9 | 1.04 | — | 19.9 | 1.00% | ₹1.0k Cr | 2.0y | |
| Tata BusIness Cycle Tata | 38 | Avoid | -4.4% | 9.3% | 12.2% | 0.36 | 0.25 | 15.8 | 0.3 | 0.97 | — | 28.5 | 0.92% | ₹2.4k Cr | 5.2y | |
| Motilal Oswal BusIness Cycle Motilal Oswal | 35 | Avoid | -4.8% | — | — | — | — | — | — | — | — | 40.1 | 1.40% | ₹1.4k Cr | 2.1y | |
| Union BusIness Cycle Union | 34 | Avoid | 0.0% | — | — | 0.00 | 0.00 | 15.4 | 0.5 | 1.00 | — | 29.4 | 1.86% | ₹485 Cr | 2.6y | |
| Quant BusIness Cycle Quant | 31 | Avoid | 2.6% | 10.5% | — | 0.36 | 0.30 | 20.8 | 0.8 | 1.18 | — | 28.7 | 1.45% | ₹933 Cr | 3.4y | |
| Bank Of India BusIness Cycle Bank of India | 26 | Avoid | 2.4% | — | — | -0.51 | -0.69 | 15.6 | -0.3 | 1.00 | — | 26.1 | 1.36% | ₹437 Cr | 2.1y | |
| Edelweiss BusIness Cycle Edelweiss | 22 | Avoid | -0.7% | — | — | -0.65 | -0.86 | 16.7 | -3.1 | 1.09 | — | 27.4 | 1.32% | ₹1.3k Cr | 2.2y | |
| ITI BusIness Cycle ITI | 5 | Avoid | — | — | — | — | — | — | — | — | — | 30.5 | 1.66% | ₹117 Cr | 0.7y |
Business Cycle funds — quick answers
›Which is the best Business Cycle mutual fund right now?
Kotak BusIness Cycle currently ranks #1 of 19 Business Cycle funds with a FundLens Smart Score of 84/100 (Strong Buy). It returned 15.3% over 3 years at a 0.77% expense ratio (direct plan). Rankings are recomputed from data updated 18 Oct 2026.
›Which Business Cycle fund has the best risk-adjusted returns?
Invesco India BusIness Cycle leads the category on the Sortino ratio at 1.60 (Sharpe 1.08) — meaning it has delivered the most return per unit of downside risk among Business Cycle funds.
›Which Business Cycle fund has the lowest expense ratio?
Kotak BusIness Cycle charges 0.77% a year (direct plan) — the lowest in the category. Lower fees compound in your favour over long holding periods.
›Which is the smallest Business Cycle fund by AUM?
ITI BusIness Cycle manages ₹117 Cr, the smallest in the category. Smaller funds can be nimbler, but check track record and costs before treating size alone as an edge.
›How long should I stay invested in a Business Cycle fund?
Business Cycle funds carry very high risk, so a horizon of 7+ years is generally sensible. Rotates sectors to ride the phases of the economic cycle. This is research, not investment advice.
Want these answers conversationally? Ask FundLens · New to the ratios? Sharpe vs Sortino, explained