Top Performing Focused Funds in 5 Years

The below table shows a list Of the Top Performing Focused Funds in 5 Years based on AUM, NAV and minimum SIP.

Introduction to Top Performing Focused Funds in 5 Years

SBI Focused Equity Fund

SBI Focused Equity Fund is a Focused mutual fund scheme from SBI Mutual Fund. This fund has been operational for 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, a 5-year CAGR of 21.29%, an exit load of 1% and an expense ratio of 0.73%. The SEBI risk category is Very High. Its asset allocation includes 0.56% in Treasury Bills, 2.75% in Cash & Equivalents, 5.74% in Rights and 90.95% in Equity.

Axis Focused Fund

Axis Focused Fund is a Focused mutual fund scheme from Axis Mutual Fund. The fund has existed for 11 years and 7 months, since January 1, 2013. 

Axis Focused Fund falls under the Focused Fund category, with an AUM of ₹14,074.71 crores, a 5-year CAGR of 16.17%, an exit load of 1% and an expense ratio of 0.79%. SEBI assigns it a Very High-risk category. The asset allocation comprises 4.85% in Cash & Equivalents and 95.15% in Equity.

HDFC Focused 30 Fund

HDFC Focused 30 Fund is a Focused mutual fund scheme from HDFC Mutual Fund. This fund has been operating for 11 years and 7 months, launched on January 1, 2013. 

HDFC Focused 30 Fund belongs to the Focused Fund category, with an AUM of ₹13,136.59 crores, a 5-year CAGR of 26.83%, an exit load of 1% and an expense ratio of 0.49%. SEBI rates its risk as Very High. Asset allocation includes 0.02% in Rights, 0.37% in Government Securities, 3.54% in REITs & InvIT, 10.45% in Cash & Equivalents and 85.62% in Equity.

Franklin India Focused Equity Fund

Franklin India Focused Equity Fund is a Focused mutual fund scheme from Franklin Templeton Mutual Fund. It has been operational for 11 years and 7 months, since its launch on January 1, 2013. 

The Franklin India Focused Equity Fund is classified as a Focused Fund with an AUM of ₹12,545.87 crores, a 5-year CAGR of 24.85%, an exit load of 1% and an expense ratio of 0.95%. SEBI assigns a Very High-risk category. Asset allocation consists of 0.25% in Rights, 2.24% in Cash & Equivalents and 97.51% in Equity.

ICICI Prudential Focused Equity Fund

ICICI Prudential Focused Equity Fund is a Focused mutual fund scheme from ICICI Prudential Mutual Fund, launched on January 1, 2013, making it operational for 11 years and 7 months. 

This fund is categorized under the Focused Fund category, having an AUM of ₹9,745.36 crores, a 5-year CAGR of 27.24%, an exit load of 1% and an expense ratio of 0.56%. SEBI places it in the Very High-risk category. The asset allocation includes 0.85% in Treasury Bills, 3.85% in Cash & Equivalents and 95.29% in Equity.

Nippon India Focused Equity Fund

Nippon India Focused Equity Fund is a Focused mutual fund scheme from Nippon India Mutual Fund. This fund has been in operation for 11 years and 7 months since its launch on January 1, 2013. 

Nippon India Focused Equity Fund is classified as a Focused Fund with an AUM of ₹8,851.92 crores, a 5-year CAGR of 24.98%, an exit load of 1% and an expense ratio of 1.15%. SEBI rates it as Very High risk. The asset allocation consists of 1.06% in Rights, 4.74% in Cash & Equivalents and 94.20% in Equity.

Mirae Asset-Focused Fund

Mirae Asset Focused Fund is a Focused mutual fund scheme from Mirae Asset Mutual Fund. This fund has existed for 5 years and 4 months, having been launched on April 23, 2019. 

Mirae Asset Focused Fund falls under the Focused Fund category, with an AUM of ₹8,255.25 crores, a 5-year CAGR of 21.10%, an exit load of 1% and an expense ratio of 0.57%. SEBI assigns it a Very High-risk category. The asset allocation includes 0.11% in Rights, 1.71% in Cash & Equivalents and 98.18% in Equity.

360 ONE Focused Equity Fund

360 ONE Focused Equity Fund is a Focused mutual fund scheme from 360 One Mutual Fund. This fund has been in operation for 9 years and 11 months, having been launched on October 8, 2014. 

The 360 ONE Focused Equity Fund is classified as a Focused Fund with an AUM of ₹7,986.59 crores, a 5-year CAGR of 27.08%, an exit load of 1% and an expense ratio of 0.87%. SEBI rates the risk as Very High. The asset allocation consists of 0.15% in Rights, 4.11% in Cash & Equivalents and 95.74% in Equity.

Aditya Birla SL Focused Fund

Aditya Birla SL Focused Fund is a Focused mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund has been operational for 11 years and 7 months since its launch on January 1, 2013. 

Aditya Birla SL Focused Fund falls under the Focused Fund category, with an AUM of ₹7,640.57 crores, a 5-year CAGR of 21.13%, an exit load of 1% and an expense ratio of 0.86%. SEBI assigns it a Very High-risk category. Asset allocation includes 0.41% in Rights, 4.31% in Cash & Equivalents and 95.28% in Equity.

Kotak Focused Equity Fund

Kotak Focused Equity Fund is a Focused mutual fund scheme from Kotak Mahindra Mutual Fund. This fund has been operational for 5 years and 2 months since its launch on June 25, 2019. 

Kotak Focused Equity Fund is categorized as a Focused Fund with an AUM of ₹3,529.49 crores, a 5-year CAGR of 22.31%, an exit load of 1% and an expense ratio of 0.51%. SEBI assigns it a Very High-risk category. Asset allocation includes 1.50% in Cash & Equivalents and 98.50% in Equity.

What Are Focused Funds?

Focused Funds are a category of mutual funds that invest in a concentrated portfolio of stocks, typically holding 20-30 companies across market capitalizations. These funds aim to generate higher returns by focusing on high-conviction ideas and the fund manager’s best stock picks.

Focused Funds allow fund managers to allocate a larger portion of the portfolio to their top investment ideas. This concentrated approach can potentially lead to higher returns but also carries higher risk compared to more diversified equity funds.

These funds are suitable for investors with a high-risk tolerance and a long-term investment horizon. They can be a good addition to a diversified portfolio for investors seeking potentially higher returns through concentrated stock exposure.

Features Of Top Performing Focused Funds in 5 Years

The main features of top-performing Focused Funds in 5 years include a concentrated portfolio, high-conviction ideas, potential for higher returns, active management and flexibility across market capitalizations. These funds aim to outperform broader market indices through focused stock selection.

• Concentrated portfolio: Focused Funds typically hold 20-30 stocks, allowing fund managers to allocate more assets to their highest conviction ideas.

• High-conviction ideas: These funds invest in the fund manager’s best stock picks, potentially leading to higher returns if the selections perform well.

• Flexibility across market caps: Focused Funds can invest across large, mid and small-cap stocks, giving managers the freedom to select the best opportunities.

• Active management: Fund managers actively monitor and adjust the portfolio, making decisions based on in-depth research and market conditions.

Best Performing Focused Funds in 5 Years

The table below shows the Best Performing Focused Funds in 5 Years based on the lowest to highest expense ratio.

Top Performing Focused Funds in 5 Years In India

The table below shows the Top Performing Focused Funds in 5 Years In India Based on the Highest 3Y CAGR.

Top Performing Focused Funds in 5 Years

The table below shows Top Performing Focused Funds in 5 Years 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 5 Years

The main factors to consider when investing in top-performing Focused Funds in 5 years include fund manager expertise, investment strategy, risk management, performance consistency, and your risk tolerance. These factors can significantly impact the fund’s performance and suitability for your portfolio.

• Fund manager expertise: Evaluate the fund manager’s experience, track record, and investment philosophy. Their stock-picking skills are crucial for the fund’s success.

• Investment strategy: Understand the fund’s approach to stock selection, sector allocation, and market cap focus. Ensure it aligns with your investment goals.

• Risk management: Assess how the fund manages concentration risk and volatility, given its focused nature. Look for funds with a robust risk management framework.

• Performance consistency: Analyze the fund’s performance across different market cycles. Look for consistent outperformance compared to the benchmark and peer group.

• Your risk tolerance: Ensure your risk appetite aligns with the higher risk profile of Focused Funds. These funds can be more volatile than diversified equity funds.

How To Invest In Top Performing Focused Funds in 5 Years?

To invest in top-performing Focused Funds in 5 years, start by researching and comparing different funds based on their performance, investment strategy and fund manager expertise. Once you’ve selected a fund that aligns with your financial goals and risk tolerance, you can invest through Alice Blue

Alice Blue is a user-friendly online investment platform that provides tools and resources to help you make informed investment decisions. You can choose to invest a lump sum amount or opt for a Systematic Investment Plan (SIP), which allows you to invest a fixed amount regularly.

For most investors, a SIP is recommended as it helps in rupee cost averaging and reduces the impact of market volatility on your investment over time. Remember to review and rebalance your investment periodically to ensure it remains aligned with your financial goals.

Advantages Of Investing In Top Performing Focused Funds in 5 Years?

The main advantages of investing in top-performing Focused Funds in 5 years include the potential for higher returns, exposure to high-conviction ideas, active management and flexibility across market capitalizations. These funds offer opportunities for investors seeking concentrated equity exposure.

• Higher return potential: Concentrated portfolios of high-conviction ideas can potentially generate higher returns compared to more diversified funds if the stock picks perform well.

• Exposure to best ideas: Focused Funds invest in the fund manager’s top stock picks, allowing investors to benefit from their expertise and research.

• Active management: Fund managers actively monitor and adjust the portfolio, making timely decisions based on market conditions and company performance.

• Flexibility: These funds can invest across market capitalizations, allowing managers to select the best opportunities regardless of company size.

Risks Of Investing In Top Performing Focused Funds in 5 Years?

The main risks of investing in top-performing Focused Funds in 5 years include higher volatility, concentration risk, manager-dependent performance and potential for higher losses. These factors can impact the fund’s performance and lead to significant fluctuations in returns.

• Higher volatility: Concentrated portfolios can experience greater price swings compared to more diversified funds, leading to higher short-term volatility.

• Concentration risk: With fewer stocks in the portfolio, the impact of underperformance in any single holding can be more pronounced.

• Manager-dependent performance: The fund’s success heavily relies on the fund manager’s stock-picking skills. Poor decisions can significantly impact returns.

• Potential for higher losses: While Focused Funds aim for higher returns, they also carry the risk of larger losses if the selected stocks underperform.

Importance of Focused Funds

The main importance of Focused Funds lies in their potential to generate higher returns, provide exposure to high-conviction ideas, offer active management benefits and serve as a complement to diversified portfolios. These funds play a crucial role for certain investors seeking concentrated equity exposure.

• Higher return potential: Focused Funds aim to outperform broader market indices by investing in a concentrated portfolio of high-conviction stocks.

• Exposure to best ideas: These funds allow investors to benefit from the fund manager’s top stock picks and in-depth research.

• Active management benefits: Fund managers actively monitor and adjust the portfolio, potentially capitalizing on market opportunities more effectively than passive strategies.

• Portfolio complement: Focused Funds can serve as a satellite holding in a diversified portfolio, potentially enhancing overall returns for risk-tolerant investors.

How Long Can You Stay Invested in Focused Funds?

The ideal investment horizon for Focused Funds is typically 5-7 years or longer. This extended time frame allows investors to potentially benefit from the fund’s concentrated strategy while smoothing out short-term volatility that can be more pronounced in these funds due to their focused nature.

A longer investment period also aligns with the fund’s strategy of investing in high-conviction ideas that may take time to realize their full potential. However, regular monitoring and rebalancing are crucial, given the higher risk profile of these funds. Investors should be prepared for periods of underperformance and higher volatility.

Tax Implications of Investing in Focused Funds

Focused Funds are taxed as equity mutual funds in India. For holding periods up to 1 year, gains are considered short-term capital gains and taxed at 15%. For holding periods over 1 year, long-term capital gains up to ₹1 lakh per financial year are tax-free.

Long-term capital gains exceeding ₹1 lakh are taxed at 10% without indexation benefits. It’s important to note that these tax rates are subject to change based on government policies. The tax efficiency of equity funds like Focused Funds can make them attractive for long-term investors.

Future of Focused Funds

The future of Focused Funds in India looks promising, driven by factors such as increasing investor sophistication, demand for alpha-generating strategies and the potential for outperformance in certain market conditions. As the Indian equity market evolves, these funds may gain more traction among investors seeking concentrated exposure to high-conviction ideas.

However, their performance will continue to be heavily dependent on fund manager expertise and stock selection skills. The success of Focused Funds in the future will likely be determined by their ability to consistently generate alpha and manage risks effectively in an increasingly competitive investment landscape.

Top Performing Focused Funds in 5 Years – 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.