Invesco India Focused 20 Equity Fund, the topper in the focused fund category, offered around 31.42% in 2023. DSP Focus Fund gave 30.32%. JM Focused Fund, the smallest scheme in the focused fund category based on assets managed, offered around 28.41%. The scheme manages assets of Rs 63.79 crore. Bandhan Focused Equity Fund gave 26.74% in 2023.ETMutualFunds also compared the performance of nine toppers with their respective benchmarks. All the toppers – nine schemes that offered more than 25%- have managed to beat their respective benchmarks.
The focused funds are benchmarked against NIFTY 500 – TRI and S&P BSE 500 – TRI. NIFTY 500 – TRI and S&P BSE 500 – TRI offered 22.67% and 22.27% respectively in 2023.
According to Amfi data, the focused fund category in 2023 has witnessed an outflow of Rs 2,226.95 crore in 2023
The asset under management of focused fund category as on November 30, 2023 stands at Rs 1.18 lakh crore. The asset under management of the focused fund category has surged by 18.35% in 2023, from Rs 1 lakh crore in January to Rs 1.18 lakh crore in November.
Note, the above exercise is not a recommendation. The exercise was done to analyse the performance of the category in 2023. One should not make investment or redemption decisions based on one-year performance.
If you are looking for recommendations, see:
Best focused mutual funds to invest in 2023
Focused fund schemes are recommended to investors who are ready to take more risk of investing in a concentrated portfolio and have an investment horizon of around seven years. As per Sebi norms, focused equity mutual fund schemes must invest in a portfolio of maximum 30 stocks. These schemes have no other restrictions when it comes to investing- like flexi cap schemes they can invest in any market capitalisations and sectors. These schemes can be extremely risky because of their concentrated portfolio. If the fund manager makes wrong calls, schemes will suffer greatly. They may also gain a lot if the fund manager makes the right calls.
