With 21.26% Annualised Returns On 1 Year SIP, This Focused Fund Is Good To Invest

Focused are Equity funds that hold only a relatively small variety of stocks or bonds that are similar along some dimension. It focuses on a limited number of stocks in a limited number of sectors. The fund that we have highlighted here is Mahindra Manulife Focused Equity Yojana. Below are the key takeaways of the fund:

Mahindra Manulife Focused Equity Yojana

Mahindra Manulife Focused Equity Yojana is an open-ended Focused mutual fund from the house of Mahindra Manulife Mutual fund, launched on 17 November 2020.  Investors should note, investing in this fund doesn't guarantee returns as it is an Equity fund which makes it a very highly risky fund for investments. This fund is suitable for investors who are looking for long-term capital appreciation. 

 The has major investments in the Financial, Technology, Consumer Staples, Energy, Healthcare, Materials, Construction, Automobile, Communications, and Metal & Mining sectors. Whereas, in terms of holding, it has a major holding in Infosys, HDFC Bank, ICICI Bank, Reliance, SBI, Larsen & Toubro, Bharti Airtel, Kotak Mahindra Bank, NTPC, and Hindustan Unilever. 

Details & Returns

1. Fund's Details

•  AUM - Rs 656 crore as on 30 November 2022
•  NAV - Rs 17.0470 as on 21 December 2022
•  Expense ratio - 0.53% as on 30 October 2022
•  Benchmark - NIFTY 500 
• Minimum Investments - Rs 1000
•  Min. Additional Investment - Rs 1000
•  Min. SIP Investment - Rs 500
•  Exit Load - 1% for redemption within 365 days

2. Returns

The fund under the Direct Plan-Growth option has given 29.80% annualised returns since its inception. Whereas it has given 17.20% annualised returns in 1 year and 27.47% in 2 years on lumpsum investments, respectively. On SIP, it ahs given 21.26% annualised returns in 1 year and 20.12% annualised returns in 2 years.

Investment Objective

The investment objective of the scheme is to generate long term capital appreciation by investing in a concentrated portfolio of equity & equity related instruments of maximum 30 companies across market capitalisation. However, there can be no assurance that the investment objective of the Scheme will be achieved. 

Investment Strategy

The fund manager will follow an active management style. The Scheme will focus on creating an appropriate diversified portfolio of companies with a long-term perspective. The Scheme will follow a top-down approach to select sectors and follow a bottom up approach to pick stocks across the sectors based on the quality of business model and quality of management. Quality of business model and quality of management will be assessed by evaluating past track record and/or future outlook. The selection of companies will be guided by a combination of one or more factors like: a) profitable growth in good or bad cycles; b) Optimum utilization of capital and/or capacity; c) leadership shown in the industry in which they operate; and d) expectations of a turnaround in business momentum and e) track record of consistent & long-term execution potential. 

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.