These 4 Focused Mutual Funds Exceed The Benchmark in the Past 10 Years

Before putting your money into a focused mutual funds, regular investors should think about the good and bad things about the fund and how it has performed. This includes considering the area the fund focuses on, the overall economy, the reputation of the company managing the fund, and most importantly, how well the fund has done compared to other similar funds.

It’s a good idea to judge a mutual fund by how often it does better than a specific benchmark index, year after year.

Now, let’s focus on a few funds in the “focused mutual funds” category that have actually outperformed the benchmark index, which is like the standard for measuring how well the fund is doing.

What are focused mutual funds?

Focused mutual funds are a type of equity mutual fund that invests in a concentrated portfolio of stocks, typically between 20 and 30. This is in contrast to diversified mutual funds, which invest in a wider range of stocks across different sectors and market capitalizations.

4 Best Focused Mutual Funds Which Outperformed the Benchmark in the Past 10 Years

Focused mutual funds are managed by fund managers who have a deep understanding of the specific sector or market segment that the fund invests in. They use this expertise to identify and invest in companies that they believe have the potential to outperform the market.

Focused funds                                               10-year returns (%) Benchmark index (%)
Quant Focused Fund19.0315.38
Nippon India Focused Equity Fund19.9615.51
SBI Focused Equity Fund17.9215.51
Franklin India Focused Equity Fund18.5015.38
Source: AMFI, 10-year-returns as on Oct 12, 2023

Quant Focused Fund

  • Launched on July 3, 2008.
  • A small fund with ₹367 crore in assets under management (AUM).
  • Annualized return since inception: 13.33%.
  • Key constituent stocks: Jio Financial Services, Treps, RIL, DLF, and Bikaji Foods International.

Nippon India Focused Equity Fund

  • Inception date: December 26, 2006.
  • A large fund with AUM of ₹6,976 crore.
  • Annualized return since inception: 14.21%.
  • Key constituent stocks: HDFC Bank, Axis Bank, Infosys, ICICI Bank, and ITC.

SBI Focused Equity Fund

  • Launched on October 11, 2004.
  • A large fund with substantial AUM of ₹29,473 crore.
  • Impressive annualized return since inception: 18.64%.
  • Key constituent stocks: HDFC Bank, Alphabet Inc, ICICI Bank, Muthoot Finance, and Treps.

Franklin India Focused Equity Fund

  • Established on July 26, 2007.
  • Manages an AUM of ₹9,359 crore.
  • Annualized return since inception: 13.70%.
  • Key constituent stocks: ICICI Bank, HDFC Bank, L&T, Axis Bank, and Infosys.

Disclaimer: The information provided on this website is for informational purposes only and is not intended to be personal financial advice. It is not tailored to your individual circumstances and needs, and it should not be used as the sole basis for making any financial decisions.

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