Best Focused Equity Funds Do Well In Current Fiscal

Best Focused Equity Funds Do Well In Current Fiscal

Focused Equity Funds Offer Higher Returns With High Risk

Generally, focused funds hold stocks in a limited number of sectors and companies. Moreover, the focused equity funds generate high returns by investing in a limit number of stocks. As of the previous report, a large number of equity funds failed to beat their benchmarks. However, the focused equity schemes carry higher risk as portfolios are concentrated with the top 10 holdings accounting for almost 60% of portfolios.


AUM: Rs 8,800cr

Lumpsum returns for 3yr: 18.85%

SIP returns for 3yr: 14.64%

Top 10 Stocks Holdings in percentage: 65%

Axis Focused 25 Fund managed by Jinesh Gopani. He has a strong portfolio of high confidence plots with 25 stocks. HDFC Bank, Bajaj Finance, Kotak Bank are the top three holdings under the scheme.


Type of Scheme: Open-Ended Equity Scheme

Benchmark: S&P BSE 200 – TRI Index

Minimum Investment: 1000/- under SIP, 5000/- for a one-time investment

IIFL Focused Equity scheme managed by Mayur Patel. The total assets under management of this scheme stood at Rs 446cr. This fund hold by top securities such as ICICI, HDFC, and Axis. Moreover, 57 percent held by the top 10 stocks. Fund managers, as well as investors, should focus on strong earnings of the business, business model, return on equity and return on capital employed while selecting the portfolio to invest in mutual fund schemes. 

The fund managers avoid the companies that have low safety and operate against the basics of the company. In October, Mr. Patel has added this fund in medical stocks. 


Type of Scheme: Open-Ended Equity Scheme

Benchmark: S&P BSE 500 TRI Index

Minimum Investment: 500/- under SIP, 5000/- for a one-time investment

SBI mutual fund also launched an NFO under focused equity fund. It has been managed by R Srinivasan. He has managed it from 2009. The scheme invests in large-cap and mid-cap stocks. The asset under management of the scheme stood at Rs 6,125cr. Lumpsum and SIP investment returns stood at 14.34% and 13.48% for three years. SBI, HDFC, P&G are the top 3 holders of the SBI Focused Equity Scheme. However, 60 percent of the scheme held by the top 10 stocks under banks, personal care, telecom-services, pharma, NBFC, Insurance, and Power equipment sectors. 

These schemes provide high returns along with high risk. The investors who seek principal grace over the long term should invest in these schemes.

Disclaimer: This article just offers data about the scheme. It does not grant any advice or direction to invest. Please study the proposal paper thoughtfully and consult your adviser before investing.

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