Kotak Business Cycle Fund Delivers 20.77% CAGR in 3 Years with ₹2,900 Crore AUM

Kotak Business Cycle Fund, an open-ended equity scheme from Kotak Mahindra Asset Management Company, has completed three years since its launch in September 2022. The fund’s assets under management (AUM) have crossed ₹2,900 crore, reflecting investor confidence. It has delivered a robust CAGR of 20.77% as of August 31, 2025, outperforming its benchmark Nifty 500 TRI, which returned 18.23% during the same period.

Returns on Investment

A lump-sum investment of ₹1 lakh made at inception would have grown to ₹1.75 lakh by August 2025. Similarly, a monthly SIP of ₹10,000, amounting to ₹3.6 lakh, would have reached around ₹4.93 lakh, highlighting the fund’s consistent performance through market cycles.

Investment Strategy and Risk Metrics

Managed by Harish Bihani and Abhishek Bisen, the fund adopts a business cycle-based approach, dynamically allocating assets across sectors depending on economic conditions. Its Sharpe ratio is under 1%, with a Beta below 1, indicating lower volatility than its benchmark. The standard deviation of 13.45% and a portfolio turnover ratio of 31.69% point to a moderate risk and churn level.

Also Read: Best Nifty 50 Index Funds in India for Nov 2025!

Conclusion

With its focus on identifying cyclical opportunities and careful stock selection, Kotak Business Cycle Fund has proven its potential to deliver strong, risk-adjusted returns over the long term.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.