Top Performing Focused Funds in 1 Year

The below table shows a list of the Top Performing Focused Funds in 1 Year based on AUM, NAV, and minimum SIP.

What Are Focused Funds?

Focused funds are mutual fund schemes that concentrate investments in a limited number of stocks, typically 20-30 companies, across sectors. These funds aim to generate higher returns by capitalizing on the fund manager’s best ideas and conviction in selected stocks.

Fund managers of focused funds conduct in-depth research to identify high-potential companies with strong growth prospects. This concentrated approach allows for more efficient monitoring and management of the portfolio, potentially leading to better performance.

However, focused funds also carry higher risks due to their limited diversification. The concentrated nature of these funds makes them more vulnerable to market volatility and sector-specific risks, requiring investors to have a higher risk tolerance.

Features Of Top Performing Focused Funds in 1 Year

The main features of top-performing focused funds in 1 year include concentrated portfolios, high-conviction stock selection, potential for higher returns, active management, and sector agnostic approach. These funds aim to outperform broader market indices through strategic stock picking.

1. Concentrated portfolio: Top-performing focused funds typically hold 20-30 stocks, allowing fund managers to allocate a significant portion of the fund’s assets to their best ideas. This concentration can lead to higher returns if the chosen stocks perform well, but it also increases the fund’s overall risk profile.

2. High-conviction stock selection: Fund managers conduct extensive research to identify companies with strong growth potential, solid fundamentals, and competitive advantages. They invest heavily in these high-conviction picks, believing in their ability to generate superior returns over time.

3. Active management: Top-performing focused funds are actively managed, with fund managers continuously monitoring and adjusting the portfolio based on market conditions and company performance. This hands-on approach allows for quick decision-making and potential exploitation of market opportunities.

4. Sector agnostic approach: Many top-performing focused funds are not restricted to specific sectors, allowing fund managers to invest across various industries. This flexibility enables them to capitalize on growth opportunities wherever they may arise in the market.

5. Higher risk-return profile: Due to their concentrated nature, top-performing focused funds often exhibit higher volatility compared to diversified funds. While this can lead to potentially higher returns, it also exposes investors to greater downside risk during market downturns.

Best Performing Focused Funds in 1 Year

The table below shows the Best Performing Focused Funds in 1 Year based on the lowest to highest expense ratio.

Top Performing Focused Funds in 1 Year In India

The table below shows Top Performing Focused Funds in 1 Year In India based on the Highest 3Y CAGR.

Top Performing Focused Funds in 1 Year List

The table below shows the top performing focused Funds in the 1 Year List based on exit load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

Factors To Consider When Investing In Top Performing Focused Funds in 1 Year

When investing in top-performing focused funds, consider factors such as fund performance, risk profile, fund manager expertise, expense ratio, and investment horizon. These elements can significantly impact your returns and help align the investment with your financial goals.

Analyze the fund’s historical performance across different market cycles to gauge its consistency. Look for funds that have outperformed their benchmark indices over various time periods, not just in the short term.

Evaluate your risk tolerance and ensure it aligns with the fund’s risk profile. Focused funds can be more volatile due to their concentrated portfolios, so assess if you can withstand potential fluctuations in your investment value.

How To Invest In Top Performing Focused Funds in 1 Year?

To invest in top-performing focused funds, start by researching and comparing different funds based on their performance, risk profile, and investment strategy. Consider factors like expense ratio, fund manager expertise, and your investment goals before making a decision. Alice Blue offers a convenient platform to explore and invest in these funds.

Once you’ve selected a fund, you can invest through various channels. Online platforms offered by mutual fund companies or third-party distributors allow for easy investment. Alternatively, you can approach a financial advisor or visit the fund house’s office for guidance.

Choose between lump sum investments or systematic investment plans (SIPs) based on your financial situation. SIPs offer the advantage of rupee cost averaging and can help mitigate market timing risks. Whichever method you prefer, ensure it aligns with your overall investment strategy.

Advantages Of Investing In Top Performing Focused Funds in 1 Year?

The main advantages of investing in top-performing focused funds include the potential for higher returns, expert management, concentrated exposure to high-conviction ideas, active portfolio management, and the opportunity to benefit from in-depth research and analysis conducted by fund managers.

1. Potential for higher returns: Focused funds concentrate investments in a limited number of carefully selected stocks, which can lead to superior performance if the chosen companies perform well. This concentrated approach allows investors to potentially achieve higher returns compared to more diversified funds.

2. Expert management: Top-performing focused funds are managed by experienced professionals who conduct extensive research and analysis to identify high-potential stocks. Investors benefit from the expertise and knowledge of these fund managers, who actively monitor and adjust the portfolio based on market conditions.

3. Concentrated exposure: By investing in a focused fund, investors gain exposure to the fund manager’s best ideas and highest-conviction stock picks. This concentration can potentially lead to outperformance if the selected stocks deliver strong returns, allowing investors to capitalize on the fund manager’s insights.

4. Active portfolio management: Focused funds typically employ an active management approach, allowing fund managers to quickly respond to market changes and capitalize on emerging opportunities. This flexibility can be advantageous in capturing potential gains and mitigating risks in dynamic market conditions.

5. In-depth research: Fund managers of focused funds conduct thorough research and analysis on a limited number of companies, enabling them to gain deep insights into these businesses. This level of understanding can lead to better investment decisions and potentially higher returns for investors.

Risks Of Investing In Top Performing Focused Funds in 1 Year?

The main risks of investing in top-performing focused funds include higher volatility, concentration risk, potential for underperformance, dependence on fund manager skills, and sector-specific risks. These factors can impact the fund’s performance and expose investors to greater downside potential.

1. Higher volatility: Focused funds typically experience greater price fluctuations due to their concentrated portfolios. With fewer stocks, the impact of individual stock performance on the overall fund value is amplified, leading to potentially larger swings in net asset value (NAV) compared to more diversified funds.

2. Concentration risk: By investing in a limited number of stocks, focused funds are more vulnerable to company-specific risks. If one or more key holdings underperform or face challenges, it can significantly impact the fund’s overall performance, potentially leading to substantial losses.

3. Potential for underperformance: While focused funds aim for higher returns, they may underperform broader market indices during certain periods. If the fund manager’s stock selections fail to deliver expected results, the fund’s performance can lag behind more diversified investment options.

4. Dependence on fund manager skills: The success of focused funds heavily relies on the fund manager’s ability to select winning stocks. If the manager’s investment decisions prove incorrect or market conditions change unfavorably, it can lead to poor performance and potential losses.

5. Sector-specific risks: Some focused funds may have higher exposure to specific sectors or industries. This concentration can increase vulnerability to sector-specific downturns or regulatory changes, potentially impacting the fund’s overall performance and increasing risk for investors.

Introduction to Top Performing Focused Funds in 1 Year

SBI Focused Equity Fund Direct Plan-Growth

SBI Focused Equity Fund Direct Plan-Growth is a focused mutual fund scheme managed by SBI Mutual Fund. This fund has been operational for over 11 years and 7 months, having been launched on January 1, 2013.

SBI Focused Equity Fund falls under the Focused Fund category, with an AUM of ₹35,727.79 Crores and a 5-year CAGR of 21.29%. The exit load is 1%, and the expense ratio is 0.73%. SEBI has categorized its risk as Very High. The fund’s portfolio includes 0.56% in Treasury Bills, 2.75% in Cash & Equivalents, 5.74% in Rights, and 90.95% in Equity.

Axis Focused 25 Fund Direct Plan-Growth

Axis Focused 25 Fund Direct Plan-Growth is a focused mutual fund scheme from Axis Mutual Fund, operational for 11 years and 7 months since its inception on January 1, 2013.

Axis Focused Fund belongs to the Focused Fund category, with an AUM of ₹14,074.71 Crores and a 5-year CAGR of 16.17%. The exit load is 1%, and the expense ratio is 0.79%. SEBI classifies its risk as Very High. The fund’s portfolio consists of 4.85% in Cash & Equivalents and 95.15% in Equity.

HDFC Focused 30 Fund Direct Plan-Growth

HDFC Focused 30 Fund Direct Plan-Growth is a focused mutual fund scheme under HDFC Mutual Fund, having been in existence for 11 years and 7 months since its launch on January 1, 2013.

HDFC Focused 30 Fund is categorized under Focused Funds, with an AUM of ₹13,136.59 Crores and a 5-year CAGR of 26.83%. The exit load is 1%, and the expense ratio is 0.49%. SEBI rates its risk as Very High. The fund allocates 0.02% to Rights, 0.37% to Government Securities, 3.54% to REITs & InvIT, 10.45% to Cash & Equivalents, and 85.62% to Equity.

Franklin India Focused Equity Fund Direct-Growth

Franklin India Focused Equity Fund Direct-Growth is a focused mutual fund scheme from Franklin Templeton Mutual Fund, active for over 11 years and 7 months since its inception on January 1, 2013.

Franklin India Focused Equity Fund is a Focused Fund with an AUM of ₹12,545.87 Crores and a 5-year CAGR of 24.85%. The exit load is 1%, and the expense ratio is 0.95%. SEBI has classified it under Very High Risk. The fund’s portfolio comprises 0.25% in Rights, 2.24% in Cash & Equivalents, and 97.51% in Equity.

ICICI Prudential Focused Equity Fund Direct-Growth

ICICI Prudential Focused Equity Fund Direct-Growth is a focused mutual fund scheme by ICICI Prudential Mutual Fund, in operation for 11 years and 7 months, launched on January 1, 2013.

ICICI Pru Focused Equity Fund is under the Focused Fund category with an AUM of ₹9,745.36 Crores and a 5-year CAGR of 27.24%. The exit load is 1%, and the expense ratio is 0.56%. SEBI categorizes the risk as Very High. The fund allocates 0.85% to Treasury Bills, 3.85% to Cash & Equivalents, and 95.29% to Equity.

Nippon India Focused Equity Fund Direct-Growth

Nippon India Focused Equity Fund Direct-Growth is a focused mutual fund scheme from Nippon India Mutual Fund, operational for 11 years and 7 months since its launch on January 1, 2013.

Nippon India Focused Equity Fund is categorized as a Focused Fund with an AUM of ₹8,851.92 Crores and a 5-year CAGR of 24.98%. The exit load is 1%, and the expense ratio is 1.15%. SEBI has rated its risk as Very High. The fund’s portfolio includes 1.06% in Rights, 4.74% in Cash & Equivalents, and 94.20% in Equity.

Aditya Birla Sun Life Focused Equity Fund Direct-Growth

Aditya Birla Sun Life Focused Equity Fund Direct-Growth is a focused mutual fund scheme managed by Aditya Birla Sun Life Mutual Fund, active for over 11 years and 7 months, launched on January 1, 2013.

Aditya Birla SL Focused Fund belongs to the Focused Fund category with an AUM of ₹7,640.57 Crores and a 5-year CAGR of 21.13%. The exit load is 1%, and the expense ratio is 0.86%. SEBI rates its risk as Very High. The fund’s portfolio allocation is 0.41% in Rights, 4.31% in Cash & Equivalents, and 95.28% in Equity.

Motilal Oswal Focused 25 Fund Direct-Growth

Motilal Oswal Focused 25 Fund Direct-Growth is a focused mutual fund scheme from Motilal Oswal Mutual Fund, in operation for 11 years and 4 months, launched on April 22, 2013.

Motilal Oswal Focused Fund falls under the Focused Fund category, with an AUM of ₹2,075.36 Crores and a 5-year CAGR of 20.79%. The exit load is 1%, and the expense ratio is 0.9%. SEBI categorizes it under Very High Risk. The fund allocates 0.79% to Cash & Equivalents and 99.21% to Equity.

Top Performing Focused Funds in 1 Year – FAQs

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.