This 4 Star Crisil Rated Focused Mutual Fund SIP, Recorded Upto 62% Return: Check Portfolio

The investment and profitability of a focused mutual fund will depend on the sectors, the fund house has selected to invest in. So, before choosing a fund, you must check the portfolio of the fund, like Fund Size, selected sectors, and previous turnover. Here, the portfolio of a focused mutual fund SIP, which was rated with 4 star by Crisil, has been discussed.

Focused mutual fund investment rationale

A focused mutual fund will hold a portfolio in a very small variety of company stocks. These kinds of funds will invest in a very limited number of sectors. The performance of these funds will depend on those few sectors' performances, hence there will not be the broad scope of diversification. However, on the other hand, if the sectors of a particularly focused fund perform well, the fund's potential will increase immediately. Like during the pandemic, the pharma, healthcare etc. Stocks outperformed other sectors. A focused mutual fund will invest in particular 20-30 company stocks, listed in the equity markets, and these funds are also popular as 'concentrated funds' or 'under-diversified funds'.

Sundaram Focused Fund - Direct Plan

Sundaram Focused Fund - Direct Plan is a popular SIP investment among investors, due to its previous years' returns. The Sundaram Focused Fund - Direct Plan's NAV stood at Rs. 119.05. Its fund size is Rs. 695.75 Crore, which is considerably good. However, the Expense Ratio (ER) is 1.54%; while the category average is at 0.91%. That can hamper your profitability from the investment to some extent. ER is the percentage, the fund house will use your money for its official management expenses.

This mutual fund SIP has been rated with 4 Star by renowned rating agency Crisil.

Absolute and annualized returns

Sundaram Focused Fund - Direct Plan's SIP's absolute returns are most lucrative in the long term. In the last 1-year SIP return stood at 11.46%, in the last 2 years it has fetched 40.25% returns, in the last 3 years it has given a 53.17% returns, and in the last 5 years, it has fetched 70.25% returns. Annualized returns of this fund's SIP were 36.19% in the past 2 years, and 29.65% in the past 3 years.

Sundaram Focused Fund - Direct Plan's absolute mutual fund returns are highest in 5 years terms. In the last 1 year return stood at 26.30%, in the last 2 years it has fetched 62.06% returns, in the last 3 years it has given 88.94% returns, and in the last 5 years, it has given a 124.93% returns. Additionally, in the past 2 years, the Sundaram Focused Fund - Direct Plan's annualized returns stood at 27.26%, while the category average is 24.19%. Hence, it has outperformed the category average.

Portfolio

Sundaram Focused Fund - Direct Plan's equity holding is 91.14%, and 8.82% in others. The Fund's Large Cap Investments are 53.74%, Mid Cap Investments are 14.57%, Small Cap Investments are 5.44%, and 17.39% investments in other funds. This fund's portfolio turnover ratio is 47.15%.

The top 10 equity holdings of the Sundaram Focused Fund - Direct Plan's are, Infosys Ltd., ICICI Bank, Reliance Industries Ltd., HDFC Bank, Housing Development Finance Corporation Ltd., Avenue Supermarts Ltd., Bajaj Finserv Ltd., State Bank Of India, Larsen & Toubro Ltd., Canara Bank.

Other peer funds are Quant Focused Fund - Direct Plan, SBI Focused Equity Fund - Direct Plan, IIFL Focused Equity Fund - Direct Plan, ICICI Prudential Focused Equity Fund - Direct Plan, etc.

(Also read:  This Bluechip Mutual Fund SIP Is Top Rated By Crisil: Ticked Upto 62% Returns)

Disclaimer

Investing in equities/mutual funds/SIPs poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, and the author are not liable for any losses caused as a result of decisions based on the article.

(Data mentioned as on February 4, 2022)