Top Performing Focused Funds
Ranked by 3-Year CAGR performance across Direct Growth plans from verified AMC filings.
| Scheme Name & AMC | Rating | AUM (₹ Cr) | 1Y Return | 3Y CAGR | 5Y CAGR |
|---|---|---|---|---|---|
Invesco India Focused Fund Invesco Mutual Fund Pvt | 4 | ₹6,229 | +1.59% | +19.81% | +13.37% |
ICICI Pru Focused Fund ICICI Prudential Mutual Fund | — | ₹17,949 | -2.40% | +16.20% | +13.82% |
ITI Focused Fund ITI Mutual Fund | — | ₹607 | +1.14% | +15.52% | +0.00% |
HDFC Focused Fund HDFC Mutual Fund | 5 | ₹26,553 | -3.75% | +14.93% | +15.81% |
Bandhan Focused Fund Bandhan Mutual Fund | 3 | ₹2,094 | +1.56% | +14.80% | +11.21% |
SBI Focused Fund SBI Funds Management | 4 | ₹50,180 | +7.80% | +14.54% | +10.39% |
Motilal Oswal Focused Fund Motilal Oswal Mutual Fund | 1 | ₹1,845 | +22.91% | +14.10% | +10.36% |
Kotak Focused Fund Kotak Mahindra Mutual Fund | 4 | ₹4,549 | -0.61% | +13.72% | +10.42% |
HSBC Focused Fund HSBC Global Mutual Fund (India) | 3 | ₹1,751 | +3.24% | +13.29% | +10.36% |
Quant Focused Fund Quant Money Managers | 3 | ₹825 | +5.35% | +12.78% | +11.66% |
DSP Focused Fund DSP Investment Managers | — | ₹2,671 | -1.15% | +12.17% | +10.13% |
Aditya Birla SL Focused Fund Aditya Birla Sun Life Mutual Fund | — | ₹7,512 | +0.12% | +12.17% | +9.48% |
Canara Rob Focused Fund Canara Robeco Mutual Fund | — | ₹2,920 | -6.71% | +11.75% | +10.30% |
Mahindra Manulife Focused Fund Mahindra Manulife Investment Management | 4 | ₹1,930 | -4.74% | +11.66% | +11.80% |
Edelweiss Focused Fund Edelweiss Mutual Fund | 4 | ₹959 | -5.06% | +11.15% | +0.00% |
SEBI Mandate & Category Classification
Focused mutual funds take high-conviction concentrated bets. SEBI permits them to invest across large, mid, small, or multi-cap segments with a minimum 65% equity allocation, but restricts their portfolio to a maximum of 30 stocks (unlike typical diversified funds holding 50 to 90 stocks).
Category Highlights
- Maximum 30 stocks in portfolio for concentrated upside
- Eliminates portfolio overdiversification and mediocre stock holdings
- High conviction strategy managed by experienced stock pickers
Taxation Rules (Post-Budget 2024)
Equity Taxation: LTCG taxed at 12.5% above ₹1.25L exemption (> 12 months). STCG taxed at 20% (≤ 12 months).
Who Should Invest?
- •Experienced equity investors who believe in Warren Buffett’s philosophy of concentrated, high-conviction portfolios.
- •Investors comfortable with higher stock-specific volatility.
Risks to Consider
- •High concentration risk: if 2 or 3 of the 30 top holdings stumble, the entire fund’s NAV can suffer sharp underperformance.
What if you invest ₹10,000/month in Focused Funds?
Projected wealth growth assuming a category benchmark CAGR of 13.5% compounded monthly:
Explore Other Mutual Fund Categories
Compare asset classes, risk-return profiles, and SEBI regulations across all fund categories in India.
Frequently Asked Questions: Focused Funds
Why are Focused funds limited to 30 stocks?
SEBI capped focused funds at 30 stocks to ensure true conviction investing and prevent managers from overdiversifying into 70-100 holdings.
What happens if a stock in a Focused fund crashes?
Because stock weights can be 5% to 8% each, a crash in a major holding affects fund NAV more noticeably than in a widely diversified fund.
Who should invest in Focused funds?
Investors with at least 5 years of equity market experience and a high risk tolerance who already have a diversified core portfolio.
What market cap do Focused funds invest in?
The fund mandate specifies where it will focus (some focus on large caps, others across multi-cap), but all must comply with the 30-stock maximum rule.