Tata Business Cycle Fund

Review Date: 22-04-2025

Beginning of Analysis

Tata Business Cycle Fund is the 8th ranked fund in the Sectoral/ Thematic Fund category. The category has total 20 funds. The Tata Business Cycle Fund has shown a very good past performence in Sectoral/ Thematic Fund. The fund has a Jensen Alpha of 3.78% which is higher than the category average of 1.34%. Here the fund has shown good performance in terms of risk adjusted returns. The fund has a Sharpe Ratio of 0.67 which is higher than the category average of 0.5.
The past performance of the fund may or may not be sustained in the future. The review is not investment advice nor is it a recommendation to buy or sell funds. The ranking is based on proprietary methodology developed by bmsmoney. The methodology is based on the past performance of the funds and does not guarantee future performance.
Sectoral/Thematic Mutual Funds are ideal for aggressive investors seeking high returns by investing in a specific sector or theme. These funds offer targeted exposure to sectors like banking, technology, or themes like infrastructure and ESG, allowing investors to capitalize on the growth potential of these segments. However, they carry higher risks due to their concentrated exposure and are heavily dependent on the performance of the chosen sector or theme. Investors should have a long-term investment horizon, a high risk tolerance, and a good understanding of the sector or theme before investing in these funds. Additionally, timing the market and monitoring sectoral trends are crucial for success.

Tata Business Cycle Fund Return Analysis

The Tata Business Cycle Fund has delivered a mixed performance across various time horizons, showcasing both strengths and challenges when compared to its Sectoral/ Thematic Fund peers and the Nifty 500 TRI benchmark. This analysis examines the fund’s returns over periods ranging from one month to ten years, alongside its Systematic Investment Plan (SIP) performance, highlighting its rankings within the Sectoral/ Thematic Fund category and its ability to outperform or underperform the benchmark and category averages.

• The fund has given a return of 3.06%, 2.72 and -5.39 in last one, three and six months respectively. In the same period the category average return was 1.94%, 1.1% and -4.68% respectively.
• Tata Business Cycle Fund has given a return of 6.31% in last one year. In the same period the Nifty 500 TRI return was 8.38%. The fund has given 2.07% less return than the benchmark return.
• The fund has given a return of 21.14% in last three years and rank 5th out of 21 funds in the category. In the same period the Nifty 500 TRI return was 15.17%. The fund has given 5.97% more return than the benchmark return.
• The fund has given a SIP return of -2.51% in last one year whereas category average SIP return is -1.89%. The fund one year return rank in the category is 16th in 26 funds
• The fund has SIP return of 18.04% in last three years and ranks 7th in 21 funds. Franklin India Opportunities Fund has given the highest SIP return (28.93%) in the category in last three years.

Tata Business Cycle Fund Risk Analysis

• The fund has a standard deviation of 14.93 and semi deviation of 10.77. The category average standard deviation is 15.15 and semi deviation is 10.81.
• The fund has a Value at Risk (VaR) of -19.78 and a maximum drawdown of -19.73. The category average VaR is -19.91 and the maximum drawdown is -17.78. The fund has a beta of 0.97 which shows that fund is less volatile than the benchmark.

Standard deviation measures the fund's return volatility and Semi deviation focuses on downside volatility. Value at Risk (VaR) is a measure of the risk of investments. Maximum Drawdown is the maximum loss from a peak to a trough of a portfolio. Beta measures the volatility of the fund compared to the benchmark. A beta of 1 indicates that the fund will move in line with the benchmark. A beta of more than 1 indicates that the fund will be more volatile than the benchmark and vice versa.

Very Good Performance in Sectoral/ Thematic Fund Category

Good Performance in Sectoral/ Thematic Fund Category

Poor Performance in Sectoral/ Thematic Fund Category

Very Poor Performance in Sectoral/ Thematic Fund Category