This business cycle mutual fund has delivered over 20% returns in 3 years

Kotak Business Cycle Fund, an open-ended equity scheme from Kotak Mahindra Asset Management Company, has completed three years with assets under management (AUM) crossing the ₹2,900 crore mark.

Since its launch in September 2022, the fund has delivered a compound annual growth rate (CAGR) of 20.77% as of August 31, 2025, outperforming its benchmark Nifty 500 TRI, which returned 18.23% over the same period.

A lump-sum investment of ₹1 lakh at inception would have grown to ₹1.75 lakh, while a monthly SIP of ₹10,000 since launch—totalling ₹3.6 lakh—would have reached approximately ₹4.93 lakh by the end of August 2025.

Managed by Harish Bihani and Abhishek Bisen, the fund follows a business cycle-based investment approach. It dynamically allocates assets across sectors and stocks depending on different stages of the economic cycle.

Key performance indicators show a Sharpe ratio under 1%, a Beta below 1, suggesting lower volatility than the benchmark, and a standard deviation of 13.45%. The portfolio turnover ratio stood at 31.69%, indicating moderate portfolio churn.

The fund aims to generate long-term capital appreciation through investments in equity and related securities, using a top-down approach to identify cyclical opportunities and a bottom-up strategy to select individual companies.

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