Amidst the turmoil in the stock market, today we are telling you about a fund which has given more returns to investors than Sensex and Nifty. Despite the poor performance of the stock market, business cycle funds have given returns of more than 18 percent in the last one year. These funds have performed better than Sensex and Nifty even in three and five years. These funds are mainly open-ended equity schemes and adopt an investment approach based on business cycles.
According to Value Research data, ICICI Prudential’s Business Cycle Fund has given returns of 18.12 percent in one year and 22.82 percent in three years. Kotak’s fund has given returns of 10.48 and 17.80 percent and the same scheme of HDFC has given returns of 8.59 and 14.97 percent.
Investment of Rs 1 lakh becomes Rs 2.51 lakh
ICICI Prudential’s Business Cycle Fund has consistently performed well across various market conditions. The objective of this fund is to invest opportunistically across sectors and themes based on the current stage of the business cycle, to achieve long-term capital appreciation. This scheme of IPRU has completed five years. The investment of Rs 1 lakh at that time has now become Rs 2.51 lakh. The same amount in Nifty-500 TRI is Rs 2.06 lakh. Talking about the SIP performance of ICICI Prudential’s Business Cycle Fund, by investing Rs 10,000 every month from the beginning, the total amount has increased to approximately Rs 9.74 lakh by January 31, 2026, i.e. an annual compound return at the rate of 18.47%. Whereas the actual investment has been Rs 6.10 lakh. This return in Nifty-500 TI has been 13.11 percent.
Investment takes place in these sectors
ICICI Prudential’s Business Cycle Fund scheme follows a top-down investment approach, guided by multiple economic indicators such as growth trends, inflation, interest rates, fiscal dynamics and global economic conditions. Based on an assessment of the current business cycle, the AMC identifies appropriate sectors and themes, after which stocks within those sectors are selected. S., Chief Investment Officer, ICICI Prudential AMC. Naren says that a large part of India’s economy is naturally cyclical. Equity leadership changes as the business cycle evolves. Till January 31, 2026, 80 percent of the investment of this scheme has been made in those sectors which are expected to benefit from improvement in economic activities. The financial sector is prominent, supported by investment in automobiles, construction and select industrial sectors.