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

Kotak Business Cycle Fund Direct Growth Plan has a NAV of ₹17.852 as of 16 Sep 2026 and scheme AUM of ₹3,508 Cr. Its 1-year, 3-year and 5-year returns are 1.92%, 14.42% and Data not available, while the fund sits in the High Risk category.

Our view is that this is a portfolio built for investors who can tolerate sharp swings and want an active equity strategy rather than a steady benchmark-like path. The fund has lagged the benchmark over 1 year, but its 3-year track record is better than the short-term reading suggests, so the fit depends more on patience than on recent momentum.

Quick facts

Particular	Details
NAV	₹17.852 as of 16 Sep 2026
AUM	₹3,508 Cr
Expense Ratio	0.6%
Launch Date	28 Sep 2022
Min SIP	₹100
Risk Category	High Risk
Benchmark	Nifty 50
Fund Category	Equity
Exit Load	0.50% on or before 90D, Nil after 90D
Fund Managers	Harish Bihani, Abhishek Bisen

The fund is managed by Harish Bihani and Abhishek Bisen.

Source data date: as of 16 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-3.58%	-4.41%
3M	1.63%	-3.6%
1Y	1.92%	-7.76%
3Y	14.42%	5.74%
5Y	Data not available	Data not available

The recent picture is mixed but not weak across every horizon. Over 1 month, the fund fell less than the benchmark, and over 3 months it held up better while the benchmark remained negative. That suggests the portfolio has been able to cushion some of the market’s shorter-term strain, even though the 1-year return is still modest at 1.92%.

The more useful signal comes from the 3-year period. The fund’s 14.42% return is clearly ahead of the benchmark’s 5.74%, which points to stronger medium-term compounding than the index. That matters because a business-cycle style strategy often relies on being in the right pockets of the market at the right time, rather than tracking a broad index closely in every phase.

At the same time, the 1-year return shows that the last stretch has not been as rewarding as the 3-year period. So our read is that the fund has shown a better longer-run shape than its latest 12 months alone suggest, but it has not delivered a smooth or consistently superior ride. The pattern is more uneven than stable.

Compared with Nifty 50, the fund has been ahead on 3 years and better in the recent short windows, but the absolute 1-year number remains low. That combination usually signals a strategy that may respond well when its active positioning works, yet can still spend long stretches with subdued gains.

Source data date: as of 16 Sep 2026

Should you BUY or HOLD Kotak 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
Kotak Business Cycle Fund Direct Growth Plan	1.92%	14.42%	Data not available
ICICI Pru Strategic Metal and Energy Equity FoF Direct Growth Plan	69.8%	36.32%	Data not available
HDFC Pharma and Healthcare Fund Direct Growth Plan	25.31%	Data not available	Data not available
Kotak Healthcare Fund Direct Growth Plan	25.27%	Data not available	Data not available
Motilal Oswal Active Momentum Fund Direct Growth Plan	24.51%	Data not available	Data not available
PGIM India Healthcare Fund Direct Growth Plan	22.75%	Data not available	Data not available

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

The peer set puts the fund’s 1-year return in a clearly softer position than the strongest recent performers, but that does not erase the better 3-year shape. In the available longer-term comparison, the fund’s 14.42% 3-year return stands above the benchmark and ahead of peers that do not show 3-year figures, while one peer with a disclosed 3-year number is much stronger. The short-term comparison therefore looks weaker than the medium-term one.

What matters most is that the fund is not telling the same story across all horizons. Some peers have far sharper recent gains, but several of them do not have meaningful longer-term data in this set. That leaves the fund looking less impressive in the latest 12 months, yet still reasonably constructive on a 3-year basis versus the benchmark.

Source data date: as of 16 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
ICICI Bank Ltd.	Bank	8.23%
Aditya Infotech Limited	Domestic Equities	5.17%
Eternal Limited	Retailing	4.04%
Axis Bank Ltd.	Bank	3.78%
Aster DM Healthcare Ltd	Healthcare	3.56%
Vijaya Diagnostic Centre Pvt	Healthcare	3.19%
Krishna Institute of Medical	Healthcare	3.18%
Indo-Mim Ltd	Domestic Equities	3.01%
Bharti Hexacom Ltd.	Telecom	2.78%
Shriram Finance Limited	Finance	2.72%

The largest holding, ICICI Bank Ltd. at 8.23%, is meaningful but not dominant on its own. The gap from the first position to the tenth holding is fairly wide, with the tenth weight down at 2.72%, so the portfolio is not built around one or two oversized bets.

That said, the top 10 holdings together account for 39.66% of the portfolio, and the fund discloses 52 holdings overall. Our view is that this points to a moderately concentrated structure at the top, followed by a longer tail that may help spread exposure beyond the most prominent names.

The visible holding mix is also varied across banking, healthcare, telecom, finance and domestic equities. That kind of spread may reduce reliance on a single sector theme, while the clustered weights near the top could still make the portfolio more sensitive to the performance of its leading positions.

To see all holdings, visit the Kotak Business Cycle Fund Direct Growth Plan page

Source data date: as of 16 Sep 2026

Who should invest

This fund suits investors who can handle High Risk exposure and are comfortable with a strategy that may move differently from the benchmark over shorter periods. The 3-year return is stronger than the benchmark, but the 1-year outcome is modest, so a patient horizon matters more than chasing recent momentum.

It is better suited to investors who want an active equity allocation and can accept uneven phases in exchange for the possibility of stronger medium-term compounding. The main trade-off is that the fund may sometimes lag in the near term even when the broader 3-year pattern looks healthier.

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: 0.50% on or before 90D, Nil after 90D.

Source data date: as of 16 Sep 2026

Frequently asked questions

What is the current NAV of Kotak Business Cycle Fund Direct Growth Plan?
The current NAV is ₹17.852 as of 16 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
Its 1-year return is 1.92% and its 3-year return is 14.42%. The 5-year return is Data not available.

How does it compare with the benchmark?
It has beaten Nifty 50 over 3 years and also held up better over the recent 1-month and 3-month windows. Over 1 year, though, the fund’s 1.92% return is still modest.

How does it compare with the peer funds listed here?
Its 1-year return is below the strongest peer numbers shown, while its 3-year return is more constructive than the benchmark. The comparison is mixed because not every peer has a disclosed 3-year figure.

What is the minimum SIP amount?
The minimum SIP amount is ₹100.

Who manages the fund and what is the exit load?
The fund is managed by Harish Bihani and Abhishek Bisen. The exit load is 0.50% on or before 90D and nil after 90D.

Bottom line

Kotak Business Cycle Fund Direct Growth Plan has a mixed near-term picture but a better 3-year profile than its benchmark. Its High Risk label fits the uneven return path, and the portfolio shows a meaningful top holding without becoming dominated by a single position. In our view, it is more relevant for investors who can stay invested through choppier phases and are looking for an active equity strategy that has shown some medium-term recovery.

Published on 17 September 2026 at 4:50 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.