Aditya Birla SL Business Cycle Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

Aditya Birla SL Business Cycle Fund Direct Growth Plan has a NAV of ₹17.69 as of 28 Aug 2026 and manages ₹1,792 Cr. Its 1-year, 3-year and 5-year returns are 14.87%, 15.19% and 0% respectively, and the scheme is tagged High Risk. Our view is that it suits investors who can stay patient through uneven stretches, because the portfolio has a strong small-cap tilt and the recent return pattern is steadier than the longer-term picture, but still well below a low-volatility profile.

Against the benchmark, the fund has held up much better over 1 year and 3 years, though its 5-year figure is not available as a meaningful track record in the numbers provided. The mix of banks, autos, finance, IT and domestic equities suggests a cyclical, diversified equity approach rather than a narrow theme.

Quick facts

Metric	Value
NAV	₹17.69
AUM	₹1,792 Cr
Expense Ratio	1.22%
Launch Date	03 Dec 2021
Min SIP	₹100
Risk Category	High Risk
Benchmark	Nifty 50
Fund Category	Equity
Exit Load	1% if units are sold on or before 30 days; nil after 30 days
Fund Managers	Pavas Pethia, Harish Krishnan

The fund is managed by Pavas Pethia and Harish Krishnan.

Source data date: as of 28 Aug 2026

Performance

Period	Fund return	Benchmark return
1M	3.69%	-0.85%
3M	12.96%	3.39%
1Y	14.87%	-2.29%
3Y	15.19%	6.4%
5Y	0%	Data not available

The recent pattern is constructive. Over 1 month and 3 months, the fund has moved up steadily, and the 1-year return has stayed positive even through a period when the benchmark was negative. That is a useful sign for investors who want an active equity scheme that can diverge from the index when market leadership shifts.

The 3-year return is still positive and comfortably ahead of the benchmark’s 3-year figure, which shows that the fund has compounded better than the index over a fuller market cycle. At the same time, the chart pattern is not smooth; the 1-year path shows clear drawdowns before recovery, so the ride has been uneven rather than defensive.

The 5-year line should be read with caution because the scheme launched in December 2021, so the fund does not have a full five-year live history. In practical terms, the newer track record means the most useful evidence comes from the 1-year and 3-year windows, and both of those currently point to positive relative behaviour versus the benchmark.

Seen together, the short-term and medium-term trends tell the same broad story: the fund has participated in the upside, but with volatility along the way. That makes the return profile more suitable for investors who are comfortable with swings in pursuit of equity growth.

Source data date: as of 28 Aug 2026

Should you BUY or HOLD Aditya Birla SL Business Cycle?

A fund's past returns alone don't tell you whether you should buy it today or continue holding it.

The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.

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Peer comparison

Fund	1Y return	3Y return	5Y return
Aditya Birla SL Business Cycle Fund Direct Growth Plan	14.87%	15.19%	0%
ICICI Pru Strategic Metal and Energy Equity FoF Direct Growth Plan	74.6291%	37.4093%	Data not available
SBI Automotive Opportunities Fund Direct Growth Plan	36.1787%	Data not available	Data not available
Aditya Birla SL Mfg. Equity Fund Direct Growth Plan	31.2065%	23.5399%	17.0758%
Motilal Oswal Active Momentum Fund Direct Growth Plan	30.7865%	Data not available	Data not available
Kotak Healthcare Fund Direct Growth Plan	29.7972%	Data not available	Data not available

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On 1-year performance, the fund trails several of the peer examples here, especially the more sector-specific strategies that posted much higher one-year gains. The picture is more balanced over 3 years, where the fund is behind Aditya Birla SL Mfg. Equity Fund Direct Growth Plan but still ahead of the benchmark figure shown for the same period. That combination suggests the fund has been solid, but not the strongest in this peer set on recent returns.

There is also a different story in the shorter horizon versus the longer horizon. Some peers have very strong 1-year numbers but lack longer records in this table, while this fund has both 1-year and 3-year data that are positive. For investors who care about consistency across time windows, that makes the comparison more useful than a single standout period.

Source data date: as of 28 Aug 2026

Portfolio: where your money goes

Market-cap bucket	Weight
Large Cap	28.7%
Mid Cap	26.08%
Small Cap	39.94%
Other Cap	5.28%

Sector	Weight	Key holdings
BANK	27.87%	KOTAK MAHINDRA BANK LIMITED (12.91%), ICICI BANK LIMITED (4.58%)
AUTOMOBILE & ANCILLARIES	10.13%	MAHINDRA & MAHINDRA LIMITED (1.7%), BHARAT FORGE LIMITED (1.35%)
FINANCE	6.76%	SHRIRAM FINANCE LTD (1.21%), ANGEL ONE LIMITED (1.08%)
DOMESTIC EQUITIES	6.71%	LENSKART SOLUTIONS LTD (1.35%), BLUESTONE JEWELLERY AND LIFESTYLE LTD (1.11%)
IT	6.45%	INFOSYS LIMITED (1.97%), HCL TECHNOLOGIES LIMITED (1.34%)

The market-cap mix shows a meaningful small-cap bias, with 39.94% in small caps, while large caps account for 28.7% and mid caps 26.08%. That balance tells us the fund is not a pure small-cap product, but small companies are the largest single exposure and may have a greater influence on how the portfolio behaves in choppy markets.

Sector exposure is also fairly spread out, yet banks stand out clearly at 27.87%. The gap versus automobiles and ancillaries at 10.13% is wide, so banking is likely to matter more than any other individual sector for short-term movements in the portfolio. Within that bucket, Kotak Mahindra Bank Limited alone carries 12.91%, which makes the sector exposure especially important.

The next three sectors sit in a much narrower band, between 6.45% and 6.76%. That middle layer suggests the fund is not overly dependent on one theme outside banking, and the presence of IT, finance and domestic equities may help diversify the cyclical tilt. Overall, the structure looks like an active equity portfolio with concentration in banks but enough spread elsewhere to avoid becoming a single-sector bet.

Source data date: as of 28 Aug 2026

Who should invest

This fund is better aligned with investors who are comfortable with High Risk equity swings and can stay invested for at least three years, preferably longer. The 1-year and 3-year returns are positive and ahead of the benchmark figures shown here, but the path has not been smooth, so patience matters.

The mix of small-cap, mid-cap and bank-heavy exposure means the scheme can behave differently from a broad index fund. That may suit investors who want active return potential from a business-cycle style portfolio and are willing to accept more fluctuation in exchange for that upside.

Tax and exit load

Holding period	Tax rate	Description
Units held less than 1 year	20%	Short-term capital gains tax
Units held more than 1 year	12.5%	Long-term capital gains tax

Exit load: 1% if units are sold on or before 30 days; nil after 30 days.

Source data date: as of 28 Aug 2026

Frequently asked questions

What is the current NAV of Aditya Birla SL Business Cycle Fund Direct Growth Plan?

The current NAV is ₹17.69 as of 28 Aug 2026.

What are the fund’s 1-year, 3-year and 5-year returns?

The fund’s returns are 14.87% over 1 year, 15.19% over 3 years and 0% for 5 years.

How has it performed against the benchmark?

It has outpaced the benchmark in the 1-year and 3-year periods shown here. The benchmark figures are -2.29% for 1 year and 6.4% for 3 years.

What is the minimum SIP amount?

The minimum SIP amount is ₹100.

What kind of risk profile does this fund have?

The fund is tagged High Risk and is suited to investors comfortable with larger swings in value. Its portfolio also leans toward small caps and a large banking allocation.

Who manages the fund?

The fund is managed by Pavas Pethia and Harish Krishnan.

Bottom line

Aditya Birla SL Business Cycle Fund Direct Growth Plan has shown stronger recent and medium-term returns than the benchmark, but the ride has been uneven and the 5-year figure does not represent a full live track record. Compared with the peer examples here, it is not the strongest on the latest 1-year number, yet it still shows a reasonable 3-year outcome. The High Risk tag, small-cap tilt and large bank allocation mean it is best viewed as an active equity fund for investors who can handle volatility and want cycle-sensitive exposure rather than a steady, low-fluctuation path.

Published on 31 August 2026 at 3:22 PM IST

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RIA disclosure

Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.