A focused mutual fund is an equity mutual fund that invests in a small number of stocks. The Securities and Exchange Board of India, or SEBI, allows focused funds to invest in as few as 30 shares. As a result, the term "focused fund" refers to an investment that focuses on no more than 30 stocks. A focused mutual fund is an equity mutual fund that invests in a small number of stocks. The Securities and Exchange Board of India, or SEBI, allows focused funds to invest in as few as 30 shares. As a result, the term "focused fund" refers to an investment that focuses on no more than 30 stocks.
As other mutual funds can invest in up to 100 stocks, it is the only one with such a restriction. A focused fund may invest in large-cap, mid-cap, or small-cap stocks. They do not invest in a big number of stocks and instead concentrate on a few industries.
SBI Focused Equity Fund
SBI Mutual Fund's SBI Focused Equity Fund Direct Plan-Growth is an equity mutual fund plan. This plan was launched on January 1, 2013, and it currently has an AUM of 16,856.57 crores with a NAV of 233.273. SBI Focused Equity Fund Direct Plan has a 1-year growth rate of 53.47 percent. It has had an average yearly return of 16.75 percent since its inception.
The majority of the money in the fund is invested in the financial, energy, healthcare, fast-moving consumer goods, and technology sectors. In comparison to other funds in the category, it has less exposure to the Financial and Energy sectors.
A monthly sip of Rs 5000 for 5 years would yield Rs 5.04 lakh, with a profit of Rs 2.04 lakh.
ValueResearch has given the fund a 4 Star rating, and Morningstar has given it a 3 Star rating.
IIFL Focused Equity Fund
IIFL Mutual Fund's IIFL Focused Equity Fund Direct-Growth is an equity mutual fund scheme. This scheme was created on October 30, 2014, and it has an AUM of 1,952.12 crores and a current NAV of 30.047 as of July 27, 2021.
ValueResearch has given the fund a 5 Star rating, and Morningstar has given it a 4 Star rating. A monthly sip of Rs 5000 for 5 years would yield Rs 5.52 lakh, with a profit of Rs 2.52 lakh.
The recent one-year returns on the IIFL Focused Equity Fund Direct-Growth are 59.29 percent. It has had an average yearly return of 17.72 percent since its inception. The fund's top 5 holdings are in ICICI Bank Ltd., Infosys Ltd., Axis Bank Ltd., Larsen & Toubro Ltd., HDFC Bank Ltd.
Principal Focused Multicap Fund
Principal Focused Multicap Fund Direct-Growth is a Principal Mutual Fund equity mutual fund program. This fund was launched on 02 January 2013 and has an AUM of Rs 600.18 crores. The most recent NAV published as of 27 July 2021 is Rs 107.220. ValueResearch has given the fund a 4 Star rating, and Morningstar has given it a 4 Star rating.
A monthly sip of Rs 5000 for 5 years would yield Rs 5.52 lakh, with a profit of Rs 2.52 lakh.
Best Equity Focused Mutual Fund SIPs To Invest In 2021
|Fund||Total investment (SIP of Rs 5000 for 5 yeas||Profit||Current value of an investment|
|SBI Focused Fund||Rs 3 Lakh||Rs 2.04 Lakh||Rs 5.04 Lakh|
|IIFL Focused Equity Fund||Rs 3 Lakh||Rs 2.52 Lakh||Rs 5.52 Lakh|
|Principal Focused Multicap Fund||Rs 3 Lakh||Rs 1.98 Lakh||Rs 4.98 Lakh|
Who should Opt for Focused Funds?
Because of the small number of stocks in their portfolio, focused funds carry a higher risk. The fund manager invests in stocks that he or she believes will give the investor with significant returns. However, because of this focus, even one bad wager can result in significant losses. This means it adds both a risk of failure and a bigger risk of failure if things don't go as planned.
Experienced investors will benefit from a focused mutual fund investment more than novice investors. The former has a high risk appetite, which is important for concentrated funds. It's also appropriate for people with a five- to seven-year time horizon.
Because focused equities mutual funds are considered high-volatile, consumers seeking a safe investment should look at other mutual fund options.
You should examine the targeted fund's portfolio as well as the fund manager's investment approach. Invest in specialised funds only if you can commit to a long-term commitment. To get a good return on your investment, you must put your money in for at least five years.
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