The below table shows a list Of the Focused Mutual Funds Based on AUM, NAV and minimum SIP.
| Name | AUM (Cr) | NAV (Rs) | Minimum SIP (Rs) |
| SBI Focused Equity Fund | 35,727.79 | 372.86 | 500 |
| Axis Focused Fund | 14,074.71 | 63.44 | 100 |
| HDFC Focused 30 Fund | 13,794.80 | 246.07 | 500.00 |
| Franklin India Focused Equity Fund | 12,545.87 | 123.5 | 500.00 |
| ICICI Pru Focused Equity Fund | 9,745.36 | 101.74 | 500.00 |
| Nippon India Focused Equity Fund | 8,851.92 | 134.47 | 500.00 |
| Mirae Asset-Focused Fund | 8,422.44 | 27.59 | 1000 |
| 360 ONE Focused Equity Fund | 7,986.59 | 55.41 | 1000 |
| Aditya Birla SL Focused Fund | 7,929.46 | 158.39 | 500 |
| Kotak Focused Equity Fund | 3,661.19 | 27.51 | 500 |
Introduction to Best-Focused Mutual Funds
SBI Focused Equity Fund
SBI Focused Equity Fund Direct Plan-Growth is a Focused mutual fund scheme from SBI Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.
SBI Focused Equity Fund Direct Plan-Growth as a focused mutual fund, manages assets valued at ₹35,727.79 crores. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 21.33%. This fund has an exit load of 1% and an expense ratio of 0.73%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at 96.68%, Debt at 0.56% and Other at 2.76%.
Axis Focused Fund
Axis Focused Direct Plan-Growth is a Focused mutual fund scheme from Axis Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.
Axis Focused Direct Plan-Growth as a focused mutual fund, manages assets valued at ₹14,074.71 crores. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 14.88%. This fund has an exit load of 1% and an expense ratio of 0.79%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at 95.15%, Debt at 2.83%, and Other at 2.02%.
HDFC Focused 30 Fund
HDFC Focused 30 Fund Direct Plan-Growth is a Focused mutual fund scheme from HDFC Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.
HDFC Focused 30 Fund Direct Plan-Growth as a focused mutual fund, manages assets valued at ₹13,794.80 crores. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 26.97%. This fund has an exit load of 1% and an expense ratio of 0.49%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at 85.64%, Debt at 0.37% and Other at 13.99%.
Franklin India Focused Equity Fund
Franklin India Focused Equity Fund Direct-Growth is a Focused mutual fund scheme from Franklin Templeton Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.
Franklin India Focused Equity Fund Direct-Growth as a focused mutual fund, manages assets valued at ₹12,545.87 crores. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 24.91%. This fund has an exit load of 1% and an expense ratio of 0.95%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at 97.76%, No Debt and Other at 2.24%.
ICICI Pru Focused Equity Fund
ICICI Prudential Focused Equity Fund Direct-Growth is a Focused mutual fund scheme from ICICI Prudential Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.
ICICI Prudential Focused Equity Fund Direct-Growth as a focused mutual fund, manages assets valued at ₹9,745.36 crores. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 27.76%. This fund has an exit load of 1% and an expense ratio of 0.56%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at 94.88%, Debt at 0.85% and Other at 4.27%.
Nippon India Focused Equity Fund
Nippon India Focused Equity Fund Direct-Growth is a Focused mutual fund scheme from Nippon India Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.
Nippon India Focused Equity Fund Direct-Growth as a focused mutual fund, manages assets valued at ₹8,851.92 crores. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 24.94%. This fund has an exit load of 1% and an expense ratio of 1.15%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at 91.95%, No Debt and Other at 8.05%.
Mirae Asset-Focused Fund
Mirae Asset Focused Fund Direct-Growth is a Focused mutual fund scheme from Mirae Asset Mutual Fund. This fund has been in existence for 5 years and 4 months, having been launched on 23/04/2019.
Mirae Asset Focused Fund Direct – Growth as a focused mutual fund, manages assets valued at ₹8,422.44 crores. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 21.57%. This fund has an exit load of 1% and an expense ratio of 0.57%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at 98.41%, No Debt and Other at 1.59%.
360 ONE Focused Equity Fund
360 ONE Focused Equity Fund Direct-Growth is a Focused mutual fund scheme from 360 One Mutual Fund. This fund has been in existence for 9 years and 11 months, having been launched on 08/10/2014.
360 ONE Focused Equity Fund Direct-Growth as a focused mutual fund, manages assets valued at ₹7,986.59 crores. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 27.11%. This fund has an exit load of 1% and an expense ratio of 0.87%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at 98.67%, No Debt and Other at 1.33%.
Aditya Birla SL Focused Fund
Aditya Birla Sun Life Focused Fund Direct-Growth is a Focused mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.
Aditya Birla Sun Life Focused Fund Direct-Growth as a focused mutual fund, manages assets valued at ₹7,929.46 crores. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 21.48%. This fund has an exit load of 1% and an expense ratio of 0.86%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at 95.69%, No Debt and Other at 4.31%.
Kotak Focused Equity Fund
Kotak Focused Equity Fund Direct-Growth is a Focused mutual fund scheme from Kotak Mahindra Mutual Fund. This fund has been in existence for 5 years and 2 months, having been launched on 25/06/2019.
Kotak Focused Equity Fund Direct – Growth as a focused mutual fund, manages assets valued at ₹3,661.19 crores. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 22.56%. This fund has an exit load of 1% and an expense ratio of 0.51%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at 98.35%, No Debt and Other at 1.65%.
Focused Mutual Funds Meaning
Focused mutual funds are investment schemes that concentrate on a limited number of stocks, usually 20-30. This strategy aims to maximize potential returns by carefully selecting a few high-conviction stocks, rather than diversifying across many.
These funds provide higher growth opportunities but come with increased risk due to limited diversification. A smaller portfolio means performance heavily depends on the success of selected stocks, making market volatility more impactful compared to diversified mutual funds.
Investors choose focused mutual funds for potential high returns, but it’s crucial to assess risk tolerance before investing. These funds are ideal for investors with a higher risk appetite and a long-term investment horizon.
Features of the Best Focused Mutual Fund India
The main features of the best-focused mutual fund in India include a concentrated portfolio of 20-30 stocks, a focus on high-growth potential companies, active fund management and the potential for high returns balanced with relatively higher risk due to limited diversification.
- Concentrated Portfolio: The best focused mutual funds maintain a small, concentrated portfolio of 20-30 stocks, allowing fund managers to give each investment more attention. This enhances the opportunity for significant gains from well-researched, high-potential companies.
- Active Fund Management: These funds are actively managed by experienced professionals who constantly monitor market trends and company performance. Their goal is to make well-informed, strategic decisions to enhance returns while minimizing risks.
- High-Growth Potential Companies: Focused mutual funds prioritize high-growth potential companies across sectors. Fund managers select stocks based on deep analysis, aiming for those that could outperform the market in the long run, providing investors with significant capital appreciation.
- Higher Risk, Higher Reward: With limited diversification, the best-focused mutual funds involve higher risk. If a few key stocks underperform, the entire fund may be impacted, but if they perform well, the fund can yield substantial returns over time.
Top Focused Mutual Funds Based on Expense Ratio
The table below shows the Best-performing Focused Mutual Funds Based on the highest to lowest expense ratio.
| Name | Expense Ratio (%) | Minimum SIP (Rs) |
| Nippon India Focused Equity Fund | 1.15 | 500.00 |
| Franklin India Focused Equity Fund | 0.95 | 500.00 |
| DSP Focus Fund | 0.94 | 100 |
| Motilal Oswal Focused Fund | 0.9 | 500.00 |
| HSBC Focused Fund | 0.9 | 1,000.00 |
| 360 ONE Focused Equity Fund | 0.87 | 1000 |
| Aditya Birla SL Focused Fund | 0.86 | 500 |
| Axis Focused Fund | 0.79 | 100 |
| SBI Focused Equity Fund | 0.73 | 500 |
| UTI Focused Fund | 0.64 | 500 |
Best Focused Mutual Funds Based on 3Y CAGR
The table below shows the Best Focused Mutual Funds Based on the Highest 3Y CAGR.
| Name | CAGR 3Y (%) | Minimum SIP (Rs) |
| HDFC Focused 30 Fund | 29.42 | 500.00 |
| Mahindra Manulife Focused Fund | 25.48 | 500 |
| ICICI Pru Focused Equity Fund | 24.79 | 500.00 |
| Invesco India Focused Fund | 24.12 | 500 |
| Franklin India Focused Equity Fund | 21 | 500.00 |
| 360 ONE Focused Equity Fund | 19.76 | 1000 |
| Canara Rob Focused Equity Fund | 19.62 | 1000 |
| Tata Focused Equity Fund | 19.6 | 500 |
| UTI Focused Fund | 18.94 | 500 |
| Nippon India Focused Equity Fund | 18.79 | 500.00 |
List Of Focused Mutual Funds Based on Exit Load
The table below shows Best Performing Focused Mutual Funds In India Based on Exit Load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.
| Name | AMC | Exit Load (%) |
| UTI Focused Fund | UTI Asset Management Company Private Limited | 1 |
| Tata Focused Equity Fund | Tata Asset Management Private Limited | 1.00 |
| SBI Focused Equity Fund | SBI Funds Management Limited | 1.00 |
| Nippon India Focused Equity Fund | Nippon Life India Asset Management Limited | 1 |
| Motilal Oswal Focused Fund | Motilal Oswal Asset Management Company Limited | 1 |
| Mirae Asset-Focused Fund | Mirae Asset Investment Managers (India) Private Limited | 1 |
| Mahindra Manulife Focused Fund | Mahindra Manulife Investment Management Private Limited | 1 |
| Kotak Focused Equity Fund | Kotak Mahindra Asset Management Company Limited | 1 |
| Invesco India Focused Fund | Invesco Asset Management Company Pvt Ltd. | 1 |
| ICICI Pru Focused Equity Fund | ICICI Prudential Asset Management Company Limited | 1 |
Focused Mutual Funds Returns
The table below shows Focused Mutual Funds Returns Based on 1Y return
| Name | Absolute Returns – 1Y (%) | Minimum SIP (Rs) |
| Invesco India Focused Fund | 67.33 | 500 |
| Mahindra Manulife Focused Fund | 52.78 | 500 |
| ICICI Pru Focused Equity Fund | 50.82 | 500.00 |
| DSP Focus Fund | 44.37 | 100 |
| HDFC Focused 30 Fund | 44.2 | 500.00 |
| Canara Rob Focused Equity Fund | 41.26 | 1000 |
| Tata Focused Equity Fund | 41.2 | 500 |
| UTI Focused Fund | 40.88 | 500 |
| HSBC Focused Fund | 40.62 | 1,000.00 |
| Motilal Oswal Focused Fund | 40.11 | 500.00 |
Historical Performance of Focused Funds
The table below shows Historical Performance Of Focused Mutual Funds based on 5Y return
| Name | CAGR 5Y (%) | Minimum SIP (Rs) |
| ICICI Pru Focused Equity Fund | 27.76 | 500.00 |
| 360 ONE Focused Equity Fund | 27.11 | 1000 |
| HDFC Focused 30 Fund | 26.97 | 500.00 |
| Nippon India Focused Equity Fund | 24.94 | 500.00 |
| Franklin India Focused Equity Fund | 24.91 | 500.00 |
| Kotak Focused Equity Fund | 22.56 | 500 |
| DSP Focus Fund | 21.91 | 100 |
| Mirae Asset-Focused Fund | 21.57 | 1000 |
| Aditya Birla SL Focused Fund | 21.48 | 500 |
| SBI Focused Equity Fund | 21.33 | 500 |
Factors to Consider When Investing in Focused Mutual Funds
The main factors to consider when investing in focused mutual funds include risk tolerance, understanding the fund manager’s track record, aligning with the fund’s investment strategy and evaluating the time horizon, as focused funds offer high reward potential but carry significant risk.
- Risk Tolerance: Focused mutual funds tend to be riskier due to limited diversification. Investors must assess their comfort with high volatility and potential losses, as concentrated stock portfolios can lead to significant swings in performance.
- Fund Manager’s Track Record: The fund manager’s expertise is crucial in focused funds. Evaluating their past performance in selecting high-potential stocks and managing risks is important to ensure they can deliver strong, consistent returns over time.
- Investment Strategy Alignment: Understanding the fund’s investment approach is key. Some focused funds may target specific industries or market caps, so it’s essential to choose one that aligns with your financial goals and investment preferences.
- Time Horizon: Focused mutual funds are typically better suited for long-term investments. Due to market volatility, short-term investors may face significant risk, whereas long-term investors have a better chance of benefiting from the fund’s growth potential.
How to Invest in Top-Focused Funds?
To invest in top-focused mutual funds, start by researching various funds’ performance, risk levels, and investment strategies. Focus on funds that align with your financial goals and risk tolerance. Evaluate historical returns and the reputation of fund managers for better decision-making.
Opening an account with a reliable brokerage firm like Alice Blue to simplify the investment process. These firms offer access to top mutual funds and provide investment tools, expert guidance, and portfolio management. Choosing the right brokerage ensures a smooth experience with ongoing support for your investments.
Once you’ve selected a focused mutual fund and a brokerage firm, you can initiate the investment online. Monitor your portfolio regularly, adjusting your investments as needed based on performance and market trends, while keeping long-term financial objectives in mind.
Impact of Market Trends on Top-Focused Mutual Funds
Market trends significantly impact top-focused mutual funds due to their concentrated portfolios. A bullish market can amplify gains as the limited number of high-potential stocks often benefits from upward trends, resulting in substantial growth for the overall portfolio.
During bearish market trends, focused mutual funds are more vulnerable to losses. The lack of diversification means underperformance in key stocks can heavily impact the fund’s value, leading to higher volatility compared to more diversified funds.
Investors should monitor market trends closely when investing in focused mutual funds. Adapting to shifts in market conditions can help mitigate risks or capitalize on growth opportunities, making it essential for long-term strategy and portfolio management.
How Focused Funds Perform in Volatile Markets?
Focused funds tend to experience higher volatility in turbulent markets due to their concentrated portfolios. With fewer stocks, any price fluctuations in key holdings can significantly impact the overall fund performance, leading to larger gains or losses compared to diversified funds.
In volatile markets, the performance of focused funds depends heavily on the stock-picking ability of the fund manager. Strong stock selections can help mitigate losses or even deliver gains, while poor choices may amplify the downside risk, making management crucial.
Investors in focused funds should have a high-risk tolerance during volatile periods. While the potential for significant returns exists, the limited diversification means these funds are more susceptible to market swings, requiring careful monitoring and a long-term approach.
Advantages of Investing in Focused Mutual Funds
The main advantages of investing in focused mutual funds include the potential for higher returns through concentrated stock selection, enhanced fund manager focus on top-performing stocks, easier portfolio management and the ability to target high-growth sectors or companies with strong prospects.
- Potential for Higher Returns: Focused mutual funds offer the possibility of substantial returns by concentrating on a small number of well-researched, high-potential stocks, allowing investors to benefit more from the performance of top-performing companies in the portfolio.
- Enhanced Fund Manager Focus: With fewer stocks to manage, fund managers can dedicate more time and resources to thoroughly analyzing each investment. This concentrated attention can lead to better stock selection and a higher chance of outperforming the market.
- Easier Portfolio Management: The limited number of stocks in focused funds makes it easier for investors to track and understand their portfolios. Investors can more easily evaluate the fund’s performance and make informed decisions based on fewer holdings.
- Target High-Growth Sectors: Focused mutual funds often concentrate on high-growth sectors or companies with strong growth prospects. This allows investors to tap into industries with significant upside potential, aligning their investments with sectors expected to drive future market performance.
Risks of Investing in Focused Mutual Funds
The main risks of investing in focused mutual funds include higher volatility due to limited diversification, greater dependency on fund manager expertise, potential underperformance if key stocks fail and increased exposure to market fluctuations, which can lead to more significant losses.
- Higher Volatility: With fewer stocks in the portfolio, focused mutual funds are more susceptible to market fluctuations. If key stocks perform poorly, the overall fund’s value may drop significantly, making them riskier compared to diversified funds.
- Dependency on Fund Manager: The success of a focused mutual fund depends heavily on the expertise of the fund manager. Poor stock selection or market misjudgment can result in significant losses, placing a lot of trust in the manager’s decision-making.
- Limited Diversification: Unlike diversified funds, focused funds invest in a smaller number of stocks. This lack of diversification means that underperformance in a few stocks can have a pronounced impact on the entire portfolio, increasing the overall risk.
- Market Sensitivity: Focused funds are more sensitive to overall market conditions. During market downturns or volatile periods, these funds can experience significant losses due to their concentrated holdings, making them more prone to drastic value changes compared to diversified mutual funds.
Contribution of Focused Funds to Portfolio Diversification
Focused funds generally offer limited contributions to portfolio diversification due to their concentrated nature. While they can enhance overall returns by targeting high-growth stocks, their lack of diversification can increase risk, making them a less effective tool for spreading investment risk.
However, within a well-diversified portfolio, focused funds can complement other investments by providing exposure to high-potential sectors or stocks. Balancing focused funds with diversified assets can optimize returns while managing risk, leveraging the high-growth potential of focused funds without compromising overall portfolio stability.
Who Should Invest in Focused Mutual Funds India?
Investors who should consider focused mutual funds in India are those with a high-risk tolerance and a long-term investment horizon. These funds are suitable for individuals seeking higher returns from concentrated stock selections and who can weather market volatility.
Additionally, experienced investors who understand market trends and are comfortable with potential volatility may find focused funds appealing. They should be prepared for significant ups and downs in performance and have a strategic approach to balance their overall investment portfolio.
Impact of Fund Manager Expertise on Focused Mutual Funds Performance
The expertise of a fund manager greatly influences the performance of focused mutual funds. Skilled managers can identify high-potential stocks and navigate market fluctuations effectively, leading to better returns and more efficient portfolio management within the fund’s concentrated holdings.
Conversely, a less experienced manager may struggle with stock selection and market timing, negatively impacting the fund’s performance. In focused mutual funds, where a few stocks drive results, the manager’s ability to make strategic decisions is crucial for achieving desired outcomes and managing risk.
How Much Money Should I Invest In Focused Funds?
The amount to invest in focused funds should align with your risk tolerance and overall financial goals. Typically, it’s advisable to allocate a smaller portion of your portfolio to focused funds due to their higher risk and concentration.
Diversifying across various asset classes is crucial, so consider limiting your investment in focused funds to 10-20% of your total portfolio. This approach balances the potential for high returns with the need for stability and risk management in your overall investment strategy.
FAQs – List Of Focused Mutual Funds
Focused mutual funds in India are investment vehicles that concentrate on a limited number of stocks, typically 20-30, aiming for high returns by investing in carefully selected high-growth companies. They offer the potential for significant gains but come with higher risks due to limited diversification.
Top Focused Mutual Funds #1: SBI Focused Equity Fund
Top Focused Mutual Funds #2: Axis Focused Fund
Top Focused Mutual Funds #3: HDFC Focused 30 Fund
Top Focused Mutual Funds #4: Franklin India Focused Equity Fund
Top Focused Mutual Funds #5: ICICI Pru Focused Equity Fund
These funds are listed based on the Highest AUM.
The Best Focused Mutual Funds based on expense ratio include Nippon India Focused Equity Fund, Franklin India Focused Equity Fund, DSP Focus Fund, Motilal Oswal Focused Fund and HSBC Focused Fund.
Investing in focused funds carries higher risk due to limited diversification and market volatility. While they can offer substantial returns, their concentrated nature means poor performance of key stocks.
The best Focused mutual funds based on the highest 3Y CAGR include HDFC Focused 30 Fund, Mahindra Manulife Focused Fund, ICICI Pru Focused Equity Fund, Invesco India Focused Fund and Franklin India Focused Equity Fund.
To invest in the best focused mutual fund, research fund performance, manager expertise, and investment strategy. Open an account with Alice Blue to access top funds, make investments, and manage your portfolio efficiently, ensuring alignment with your financial goals.
We hope you’re clear on the topic, but there’s more to explore in stocks, commodities, mutual funds, and related areas. Here are important topics to learn about.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
