Top Business Cycle Mutual Funds (2026)
Ranked by 3 year return, Direct plans, as on the latest NAV · AUM as on 30-09-2026
There are 19 Business Cycle mutual funds. Their average 3 year return is 12.9% a year, and −3.7% over the last year. The highest 3 year returns: Kotak Business Cycle Fund 15.8%, Mahindra Manulife Business Cycle Fund 15.7%, HSBC Business Cycles Fund 14.8%.
- Total AUM
- ₹40,558 Cr
- As on 30-09-2026
- Funds
- 19
- From 19 fund houses
- Expense ratio
- 0.75% to 1.81%
- Direct plans, lowest to highest
- Average 3Y return
- 12.9%
- A year, Direct plans
All Business Cycle Funds
Ranked by 3 year return, highest first
Ranked by 3 year return, highest first
| Exit load | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Kotak Business Cycle Fund | 1 | 3,414 | −0.11% | +15.85% | -- | -- | Very High | 0.75% | 0.5% within 90 days | 13.74% |
| Mahindra Manulife Business Cycle Fund | 2 | 1,291 | −4.53% | +15.68% | -- | -- | Very High | 0.95% | Varies | 15.69% |
| HSBC Business Cycles Fund | 3 | 1,179 | −4.83% | +14.78% | -- | -- | Very High | 1.15% | 1% within 1 year | 18.20% |
| ICICI Prudential Business Cycle Fund | 4 | 14,889 | −9.46% | +14.41% | +13.57% | -- | -- | 1.04% | 1% within 1 month | 12.77% |
| Aditya Birla Sun Life Business Cycle Fund | 5 | 1,725 | +0.12% | +13.11% | -- | -- | Very High | 1.56% | 1% within 30 days | 13.71% |
| Baroda BNP Paribas Business Cycle Fund | 6 | 535 | −2.27% | +12.36% | +10.53% | -- | -- | 1.07% | -- | 13.58% |
| Axis Business Cycles Fund | 7 | 2,039 | −3.38% | +12.13% | -- | -- | Very High | 1.63% | 1% within 12 months | 14.88% |
| HDFC Business Cycle Fund | 8 | 2,646 | −3.42% | +10.75% | -- | -- | Very High | 1.16% | 1% within 1 year | 13.88% |
| quant Business Cycle Fund | 9 | 930 | +0.11% | +10.47% | -- | -- | Very High | 1.45% | None | 17.79% |
| Tata Business Cycle Fund | 10 | 2,416 | −9.95% | +9.10% | +11.90% | -- | Very High | 0.94% | 0.5% within 30 days | 14.78% |
| Sundaram Business Cycle Fund | -- | 1,716 | −7.30% | -- | -- | -- | Very High | 1.12% | 1% within 365 days | -- |
| DSP Business Cycle Fund | -- | 1,474 | −3.53% | -- | -- | -- | Very High | 1.12% | 0.5% within 1 month | -- |
| Motilal Oswal Business Cycle Fund | -- | 1,449 | −9.63% | -- | -- | -- | Very High | 1.43% | 1% within 3 months | -- |
| Invesco India Business Cycle Fund | -- | 1,373 | +8.04% | -- | -- | -- | Very High | 0.84% | 0.5% within 3 months | -- |
| Edelweiss Business Cycle Fund | -- | 1,344 | −1.78% | -- | -- | -- | Very High | 1.28% | 1% within 90 days | -- |
| Bandhan Business Cycle Fund | -- | 1,100 | −8.94% | -- | -- | -- | Very High | 1.02% | 0.5% within 30 days | -- |
| Union Business Cycle Fund | -- | 485 | −2.88% | -- | -- | -- | Very High | 1.81% | 1% within 1 year | -- |
| Bank of India Business Cycle Fund | -- | 437 | −2.50% | -- | -- | -- | Very High | 1.37% | 1% within 3 months | -- |
| ITI Business Cycle Fund | -- | 117 | -- | -- | -- | -- | Very High | 1.63% | 0.5% within 3 months | -- |
Returns of each fund's Direct plan (its only plan where it has one), as on the latest NAV. 3, 5 and 10 year figures are a rate a year. Std dev: how much the daily returns swung over 3 years, as a yearly figure; lower is steadier. Riskometer and exit load from the fund's scheme summary document; "Varies" means the load changes with how long you hold, and the fund page has the full wording. Expense ratio: Direct plan, from AMFI. AUM at the end of the fund's last reported month. A fund younger than 3 years has no rank and is listed after the ranked ones.
Stocks Business Cycle Funds Bought and Sold in September 2026
What the 5 largest Business Cycle funds changed in their September 2026 portfolios, against the month before
Bought
| Stock | New in | Added by |
|---|---|---|
| Interglobe Aviation Ltd.ICICI Prudential Business Cycle, Axis Business Cycles | 1 fund | 1 fund |
| HITACHI ENERGY INDIA LTDTata Business Cycle | 1 fund | -- |
| Glass Wall Systems (India) LimitedHDFC Business Cycle | 1 fund | -- |
| Aurobindo Pharma LimitedAxis Business Cycles | 1 fund | -- |
| Neogen Chemicals LimitedAxis Business Cycles | 1 fund | -- |
| Marico LimitedAxis Business Cycles | 1 fund | -- |
| Gland Pharma LimitedAxis Business Cycles | 1 fund | -- |
| Rentomojo LimitedHDFC Business Cycle | 1 fund | -- |
| Indian Oil Corporation Ltd.ICICI Prudential Business Cycle | 1 fund | -- |
| Onemi Technology Solutions LimitedAxis Business Cycles | 1 fund | -- |
Sold
| Stock | Exited by | Reduced by |
|---|---|---|
| Dhoot Transmission LimitedHDFC Business Cycle, Axis Business Cycles | 1 fund | 1 fund |
| TML Commercial Vehicles Ltd.ICICI Prudential Business Cycle, HDFC Business Cycle | 1 fund | 1 fund |
| ONE 97 COMMUNICATIONS LTDTata Business Cycle, Axis Business Cycles | -- | 2 funds |
| EMMVEE PHOTOVOLTAIC POWER LTDTata Business Cycle | 1 fund | -- |
| BHARAT HEAVY ELECTRICALS LTDTata Business Cycle | 1 fund | -- |
| Siemens Ltd.ICICI Prudential Business Cycle | 1 fund | -- |
| ABB India Ltd.ICICI Prudential Business Cycle | 1 fund | -- |
| City Union Bank LimitedAxis Business Cycles | 1 fund | -- |
| Hindustan Unilever LimitedAxis Business Cycles | 1 fund | -- |
| Shriram Finance Ltd.HDFC Business Cycle | 1 fund | -- |
From each fund's own monthly portfolio, stocks only. "New in" means the fund did not hold the stock the month before; "Exited by" means it sold all of it. Added and reduced count shares held, so a price move alone is not a change. Funds counted: ICICI Prudential Business Cycle Fund, Kotak Business Cycle Fund, HDFC Business Cycle Fund, Tata Business Cycle Fund, Axis Business Cycles Fund.
Compare Business Cycle Funds
The largest funds of the category, side by side
How Business Cycle Funds Are Taxed
As equity funds: 65% or more of each fund is in Indian stocks
| When you sell | Tax on the gain |
|---|---|
| Within 1 year | 20% of the gain (short term) |
| After 1 year | 12.5% of gains above ₹1.25 lakh a financial year (long term) |
- IDCW (dividend) payouts are added to your income and taxed at your slab rate.
- A stamp duty of 0.005% is deducted when you invest.
Rules in force from 23-07-2024 (Finance Act 2024). Tax depends on your own income; this is general information, not tax advice.
What Is a Business Cycle Fund?
Sector and theme funds that invest in the sectors the fund manager expects to gain in the current stage of the economy. SEBI requires at least 80% of such a fund in its sector or theme.
Other sector and theme categories: Banking & Financial Services · Technology · Healthcare & Pharma · Infrastructure · Consumption · Manufacturing · PSU · Energy & Commodities · MNC · ESG · Transport & Auto
Business Cycle Funds: Frequently Asked Questions
Which are the top Business Cycle mutual funds?
By 3 year return, the top Business Cycle funds are 1. Kotak Business Cycle Fund (15.8% a year), 2. Mahindra Manulife Business Cycle Fund (15.7% a year), 3. HSBC Business Cycles Fund (14.8% a year), 4. ICICI Prudential Business Cycle Fund (14.4% a year), 5. Aditya Birla Sun Life Business Cycle Fund (13.1% a year). Past returns do not promise future returns, so also look at costs, risk and how long each fund has done well.
How many Business Cycle funds are there?
19 Business Cycle funds are open for investment, from 19 fund houses.
What is a Business Cycle fund?
Sector and theme funds that invest in the sectors the fund manager expects to gain in the current stage of the economy. SEBI requires at least 80% of such a fund in its sector or theme.
What is the average return of Business Cycle funds?
1 year: -3.7%, 3 years: 12.9% a year, 5 years: 12.0% a year. The simple average of every Business Cycle fund's Direct plan.
Which Business Cycle fund has the lowest expense ratio?
Kotak Business Cycle Fund, at 0.75% a year (Direct plan), as reported to AMFI.
Which is the largest Business Cycle fund?
ICICI Prudential Business Cycle Fund, with ₹14,889 Cr of investors' money on 30-09-2026.
How are Business Cycle funds taxed?
As equity funds: gains on units sold within 1 year are taxed at 20%; after that, gains above ₹1.25 lakh a financial year are taxed at 12.5%.
This page is information, not investment advice. Mutual fund investments are subject to market risks; read all scheme related documents carefully. Past returns do not promise future returns. Figures come from AMFI, NSE, BSE and each fund house's own documents.