Top Focused Mutual Funds for Investment in November 2024
Focused funds are a type of equity mutual fund that invests in a limited number of stocks and provides concentrated exposure. Many investors believe that a strong portfolio helps them to achieve better returns.
Some investors consider that many mutual fund schemes provide average returns because they have large, diversified portfolios. For those investors, a focused mutual fund scheme could be a suitable option.
Focused funds can invest in a maximum of 30 stocks, according to SEBI guidelines. These funds are similar to multi-cap funds because they have no restriction on investing by market capitalization or sectors.
Focused funds have to invest their assets in equity and equity-related instruments of at least 65%. Because of the limited number of stocks, these have a focused portfolio.
The fund manager chooses a few stocks for investment that they believe have good growth potential. Fund managers have control over the allocation of funds across market capitalizations and sectors.
If you want to invest in focused funds, you should be ready to take risks and have an investment horizon of approx. seven years.
Here are some focused equity mutual fund schemes you can invest in November 2024:
- SBI Focused Equity Fund
- Sundaram Focused Fund
- Quant Focused Fund
- 360 ONE Focused Equity Fund
SBI Focused Equity Fund has been in the top fourth quartile for the past three months. The scheme had been in the third quartile before. Sundaram Focused Fund has been in the top fourth quartile for the last two months. The scheme had been in the third quartile earlier.
Focused mutual funds match the portfolios of those investors who are seeking high capital growth in the long run by investing in a strong portfolio. Aggressive investors will take risks to earn higher returns by investing in a small number of stocks.
