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

Union Business Cycle Fund Direct Growth Plan has a NAV of ₹11.91 as of 17 September 2026 and an AUM of ₹517 Cr. Its 1-year, 3-year and 5-year returns are 1.55%, 0% and 0% respectively, and the scheme sits in the High Risk category. Our view is that this is a fund for investors who can accept a choppy journey, because the recent return profile is modest while the portfolio still carries meaningful exposure to cyclical and financial names.

The benchmark has been weaker over the same horizon, which helps frame the fund’s 1-year outcome, but the longer runway remains limited because the scheme launched only in March 2024. The portfolio is reasonably diversified across 56 holdings, yet the top positions still matter, so the fund can move with shifts in a few key businesses.

Quick facts

Particular	Details
NAV	₹11.91 as of 17 Sep 2026
AUM	₹517 Cr
Expense Ratio	1.37%
Launch Date	05 Mar 2024
Min SIP	₹500
Risk Category	High Risk
Benchmark	Nifty 50
Fund Category	Equity
Exit Load	1% on or before 1Y, Nil after 1Y
Fund Managers	Harshad Patwardhan, Pratik Dharmshi

The fund is managed by Harshad Patwardhan and Pratik Dharmshi.

Source data date: as of 17 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-3.09%	-3.66%
3M	-1.16%	-3.71%
1Y	1.55%	-7.13%
3Y	Data not available	Data not available
5Y	Data not available	Data not available

The recent pattern has been uneven, but not erratic enough to suggest a complete breakdown. Over the last month, the fund fell, though it still held up better than the benchmark, and the same relative pattern appears over 3 months, where the benchmark’s decline was steeper.

The 1-year figure is the clearest positive marker available today. At 1.55%, the fund is above water over the year, while the benchmark is still negative. That gap matters because it shows the strategy has done a better job of preserving value than the market reference over the same stretch, even if the absolute gain is small.

What the short-term numbers do not yet confirm is a durable compounding pattern. The scheme has been live only since March 2024, so 3-year and 5-year return figures are not available. In practical terms, that means we can comment more confidently on resilience over the past year than on long-cycle consistency.

The daily pattern also looks more defensive than strongly trending. The fund has had pullbacks and recoveries, but the one-year path has not shown the kind of smooth upward drift that would usually indicate strong momentum. For investors, that suggests a strategy that may respond to market shifts without offering clear evidence yet of sustained long-horizon compounding.

Source data date: as of 17 Sep 2026

Should you BUY or HOLD Union 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
Union Business Cycle Fund Direct Growth Plan	1.55%	Data not available	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. On the available 1-year figures, the fund trails the strongest peer outcomes by a wide margin, and the gap is visible even against the lower end of the listed peers. The longer-horizon picture is harder to judge because the current fund has no 3-year or 5-year record yet, while one peer shows a strong 3-year number. That makes the short-term and longer-term comparisons tell different stories: the fund has been steadier than the benchmark over recent periods, but it has not matched the stronger peer return profiles.

Source data date: as of 17 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
ICICI Bank Ltd.	Bank	6.43%
Larsen & Toubro Ltd.	Infrastructure	4.24%
TREPS	Cash & Cash Equivalents and Net Assets	4.06%
One 97 Communications Ltd.	IT	3.32%
Axis Bank Ltd.	Bank	3.05%
Shriram Finance Ltd.	Finance	2.79%
HDFC Bank Ltd.	Bank	2.75%
Coforge Ltd.	IT	2.48%
Sona BLW Precision Forgings Ltd.	Automobile & Ancillaries	2.32%
Bharat Heavy Electricals Ltd.	Capital Goods	2.28%

The top 10 holdings account for approximately 33.72% of the portfolio. To see all holdings, visit the Union Business Cycle Fund Direct Growth Plan page

The largest position, ICICI Bank Ltd., is 6.43%, which is meaningful but not overwhelming on its own. After that, the weights step down fairly gradually through infrastructure, cash management, technology, finance and capital goods, so the portfolio does not look like a single-position bet.

At the same time, the spread from the first holding to the tenth is noticeable, which means the biggest names are likely to have greater influence than the smaller ones in this top slice. The presence of 56 total holdings suggests a wider tail beyond the disclosed top 10, but the combined top-10 weight of 33.72% still leaves a large share of the fund outside these positions.

Our view is that this blend may produce a balanced but active exposure profile. The portfolio can still be influenced by a handful of banks and cyclical names, yet the top slice is not so dominant that the fund is defined only by its largest holding.

Source data date: as of 17 Sep 2026

Who should invest

This fund fits investors who are comfortable with High Risk and want a business-cycle-oriented equity strategy rather than a smooth defensive profile. The available 1-year result is positive, but the short-term path has been uneven, and the scheme is too young for a meaningful 3-year or 5-year track record.

That makes it better suited to a longer horizon and to investors who can tolerate the possibility of lagging stronger peers in some stretches. The main trade-off is that the portfolio may offer diversification across 56 holdings, but its recent return history still shows limited proof of sustained long-term compounding.

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 1 year; nil after 1 year.

Source data date: as of 17 Sep 2026

Frequently asked questions

What is the current NAV of Union Business Cycle Fund Direct Growth Plan?
The NAV is ₹11.91 as of 17 September 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The 1-year return is 1.55%, while the 3-year and 5-year returns are not available because the scheme has not completed those horizons yet.

How has the fund done versus Nifty 50?
Over 1 year, the fund has returned 1.55% versus -7.13% for Nifty 50. Over 1 month and 3 months, the fund has also been less weak than the benchmark.

How does it compare with the listed peer funds on 1-year returns?
Its 1-year return is lower than the peer funds listed here, which have 1-year returns ranging from 22.75% to 69.8%.

What is the minimum SIP amount?
The minimum SIP is ₹500.

Who manages the fund and what is the exit load?
The fund is managed by Harshad Patwardhan and Pratik Dharmshi. The exit load is 1% if units are sold on or before 1 year, and nil after 1 year.

Bottom line

Union Business Cycle Fund Direct Growth Plan has a short live history, a modest 1-year gain, and no 3-year or 5-year record yet. Recent performance has been better than the benchmark, but the peer set has shown far stronger 1-year outcomes overall. The portfolio is diversified across 56 holdings, yet the top positions still matter enough to shape outcomes. For investors who can accept High Risk and want a cycle-sensitive equity approach, it is more of a watchful, longer-horizon consideration than a proven long-term compounder.

Published on 18 September 2026 at 12:48 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.