Top Performing Focused Funds in 10 Years

The below table shows a list of the Top Performing Focused Funds in 10 Years based on AUM, NAV, and minimum SIP.

Introduction to Top Performing Focused Funds in 10 Years

HDFC Focused 30 Fund  

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

HDFC Focused 30 Fund falls under 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%. The SEBI risk category is Very High. Its asset allocation includes 85.62% in Equity, 10.45% in Cash & Equivalents, 3.54% in REITs & InvIT, 0.37% in Government Securities, and 0.02% in Rights.

Franklin India Focused Equity Fund  

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

Franklin India Focused Equity Fund falls under the Focused Fund category 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%. The SEBI risk category is Very High. Its asset allocation includes 97.51% in Equity, 2.24% in Cash & Equivalents, and 0.25% in Rights.

ICICI Prudential Focused Equity Fund  

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

ICICI Prudential Focused Equity Fund falls under the Focused Fund category with 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%. The SEBI risk category is Very High. Its asset allocation includes 95.29% in Equity, 3.85% in Cash & Equivalents, and 0.85% in Treasury Bills.

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 operational since December 31, 2012.

Nippon India Focused Equity Fund falls under the Focused Fund category with an AUM of ₹8,851.91 crores, a 5-year CAGR of 24.98%, an exit load of 1%, and an expense ratio of 1.15%. The SEBI risk category is Very High. Its asset allocation includes 94.20% in Equity, 4.74% in Cash & Equivalents, and 1.06% in Rights.

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 operational for 9 years and 11 months, having been launched on October 8, 2014.

360 ONE Focused Equity Fund falls under the Focused Fund category 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%. The SEBI risk category is Very High. Its asset allocation includes 95.74% in Equity, 4.11% in Cash & Equivalents, and 0.15% in Rights.

Kotak Focused Equity Fund  

Kotak Focused Equity Fund is a Focused mutual fund scheme from Kotak Mahindra Mutual Fund. This fund has been operational since July 16, 2019.

Kotak Focused Equity Fund falls under the Focused Fund category 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%. The SEBI risk category is Very High. Its asset allocation includes 98.50% in Equity and 1.50% in Cash & Equivalents.

Bandhan Focused Equity Fund  

Bandhan Focused Equity Fund is a Focused mutual fund scheme from Bandhan Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

Bandhan Focused Equity Fund falls under the Focused Fund category with an AUM of ₹1,651.77 crores, a 5-year CAGR of 22.31%, an exit load of 1%, and an expense ratio of 0.82%. The SEBI risk category is Very High. Its asset allocation includes 97.82% in Equity and 2.18% in Cash & Equivalents.

Quant Focused Fund  

Quant Focused Fund is a Focused mutual fund scheme from Quant Mutual Fund. This fund has been operational since January 7, 2013.

Quant Focused Fund falls under the Focused Fund category with an AUM of ₹1,115.99 crores, a 5-year CAGR of 28.82%, an exit load of 1%, and an expense ratio of 0.70%. The SEBI risk category is Very High. Its asset allocation includes 67.56% in Equity, 30.25% in Futures & Options, 4.33% in Treasury Bills, and -2.14% in Cash & Equivalents (adjusted to Others).

Sundaram Focused Fund  

Sundaram Focused Fund is a Focused mutual fund scheme from Sundaram Mutual Fund. This fund has been operational since January 2, 2013.

Sundaram Focused Fund falls under the Focused Fund category with an AUM of ₹1,110.63 crores, a 5-year CAGR of 23.68%, an exit load of 0.25%, and an expense ratio of 1.22%. The SEBI risk category is Very High. Its asset allocation includes 98.16% in Equity and 1.84% in Cash & Equivalents.

Baroda BNP Paribas Focused Fund  

Baroda BNP Paribas Focused Fund is a Focused mutual fund scheme from Baroda BNP Paribas Mutual Fund. This fund has been operational since October 6, 2017.

Baroda BNP Paribas Focused Fund falls under the Focused Fund category with an AUM of ₹682.06 crores, a 5-year CAGR of 22.46%, an exit load of 1%, and an expense ratio of 0.47%. The SEBI risk category is Very High. Its asset allocation includes 96.24% in Equity and 3.76% in Cash & Equivalents.

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 10 Years

The main features of top-performing Focused Funds in 10 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 10 Years

The table below shows the Best Performing Focused Funds in 10 Years based on the lowest to highest expense ratio.

Top Performing Focused Funds in 10 Years In India

The table below shows the Top Performing Focused Funds in 10 Years In India based on the Highest 3Y CAGR.

Top Performing Focused Funds in 10 Years

The table below shows the Top Performing Focused Funds in 10 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 10 Years

The main factors to consider when investing in top-performing Focused Funds in 10 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 10 Years?

To invest in top-performing Focused Funds in 10 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 risk tolerance and investment goals, 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 10 Years?

The main advantages of investing in top-performing Focused Funds in 10 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 10 Years?

The main risks of investing in top-performing Focused Funds in 10 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 alpha, 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.

• Alpha generation: Focused Funds aim to outperform the market by investing in a concentrated portfolio of carefully selected stocks.

• High-conviction exposure: These funds provide access to the fund manager’s best investment ideas, potentially benefiting from their expertise and 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 to 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 10 Years – FAQs   

We hope you’re clear on the topic, but there’s more to explore in stocks, commodities, mutual funds, and related areas. Here are important topics to learn about.

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.