INVESTMENTS
FOCUSED MUTUAL FUND
What is Focused Mutual Fund?
Focused mutual funds are equity funds that adhere to a focused portfolio approach. Regulation states that these funds' portfolios cannot contain more than thirty equities, although they are not restricted in terms of market capitalization or investment sectors.
A focused fund is a mutual fund that holds a only relatively small variety of stocks or bonds that are similar along some dimension. By definition, a focused mutual fund focuses on a limited number stocks in a limited number of sectors, rather than holding a broad or diversified mix of positions.
KEY KNOWLEDGE
What is Purpose Of Focused Fund:
One of the principal benefits of investing in ordinary mutual funds is to promote diversity in equity investments. Most mutual funds invest in a large number of companies that have pre-determined weights to save investors from the hassle of selecting each security. Now, while this diversification helps investors to maximise their returns while minimising risks and volatility, on the flip side, they can also present certain drawbacks.
Thus, returns from these funds are considered to be more volatile. They are riskier than the mutual funds that invest in a large number of stocks but can also deliver higher returns than them. They are also alternatively known as “concentrated funds” or “under-diversified funds”.
These funds are subject to taxes that are comparable to those associated with mutual funds. For a restricted number of enterprises, these funds may invest in debt funds, tax-saving equity funds, non-tax-saving equity funds, SIP, etc.
The concentrated equity funds may be subject to both short- and long-term capital gains taxes. If the long-term capital gains (LTCG) from equities funds surpass Rs. 1 lakh, they would be subject to 10% taxation. The tax-saving equities funds now have a 36-month lock-in period, which classifies all of the profits as long-term. They are therefore referred to as tax-saving equity funds.
The short term capital gains or STCG are taxed at the rate of 15% if the units are redeemed before the completion of 1 year.
Debt fund long-term capital gains are subject to 20% post-indexation taxation. Indexation is the process of accounting for the increase in inflation from the time the funds are purchased until they are sold.
Who Should Invest in Focused Mutual Fund?
Focused equity fund investments are usually for veteran investors and individuals with a high-risk appetite. Since these funds are considered to be more volatile
Major Advantages:
When picking which firms to invest in, fund managers conduct extensive research on each before settling on those that have the potential to yield the highest returns. The comprehensive evaluations of the businesses continue to be advantageous to investors.
They can yield the highest profits while being high-risk investments. Investors can more efficiently maximize their financial gains by using targeted mutual funds.
Top Performing Focused Mutual Funds
HDFC Focused 30 Fund Direct Plan-Growth is a Focused mutual fund scheme from Hdfc Mutual Fund. This fund has been in existence for 10 yrs 11 m, having been launched on 01/01/2013. HDFC Focused 30 Fund Direct Plan-Growth has ₹6,942 Crores worth of assets under management (AUM) as on 30/09/2023 and is medium-sized fund of its category. The fund has an expense ratio of 0.52%, which is less than what most other Focused funds charge.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
ALLOCATION BY MARKET CAPITALIZATION
Quant Focused Fund Direct-Growth is a Focused mutual fund scheme from Quant Mutual Fund. This fund has been in existence for 10 yrs 11 m, having been launched on 01/01/2013. Quant Focused Fund Direct-Growth has ₹417 Crores worth of assets under management (AUM) as on 30/09/2023 and is medium-sized fund of its category. The fund has an expense ratio of 0.76%, which is close to what most other Focused funds charge.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
ALLOCATION BY MARKET CAPITALIZATION
ICICI Prudential Focused Equity Fund Direct-Growth is a Focused mutual fund scheme from Icici Prudential Mutual Fund. This fund has been in existence for 10 yrs 11 m, having been launched on 01/01/2013. ICICI Prudential Focused Equity Fund Direct-Growth has ₹5,589 Crores worth of assets under management (AUM) as on 30/09/2023 and is medium-sized fund of its category. The fund has an expense ratio of 0.67%, which is close to what most other Focused funds charge.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
ALLOCATION BY MARKET CAPITALIZATION
Nippon India Focused Equity Fund Direct-Growth is a Focused mutual fund scheme from Nippon India Mutual Fund. This fund has been in existence for 10 yrs 11 m, having been launched on 01/01/2013. Nippon India Focused Equity Fund Direct-Growth has ₹6,903 Crores worth of assets under management (AUM) as on 30/09/2023 and is medium-sized fund of its category. The fund has an expense ratio of 1.17%, which is higher than what most other Focused funds charge.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
ALLOCATION BY MARKET CAPITALIZATION
Franklin India Focused Equity Fund Direct-Growth is a Focused mutual fund scheme from Franklin Templeton Mutual Fund. This fund has been in existence for 10 yrs 11 m, having been launched on 01/01/2013. Franklin India Focused Equity Fund Direct-Growth has ₹9,237 Crores worth of assets under management (AUM) as on 30/09/2023 and is medium-sized fund of its category. The fund has an expense ratio of 1.02%, which is higher than what most other Focused funds charge.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
ALLOCATION BY MARKET CAPITALIZATION
JM Focused Direct Plan-Growth is a Focused mutual fund scheme from Jm Financial Mutual Fund. This fund has been in existence for 10 yrs 11 m, having been launched on 01/01/2013. JM Focused Direct Plan-Growth has ₹56 Crores worth of assets under management (AUM) as on 30/09/2023 and is small fund of its category. The fund has an expense ratio of 1.59%, which is higher than what most other Focused funds charge.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
ALLOCATION BY MARKET CAPITALIZATION
Sundaram Focused Fund Direct-Growth is a Focused mutual fund scheme from Sundaram Mutual Fund. This fund has been in existence for 10 yrs 11 m, having been launched on 01/01/2013. Sundaram Focused Fund Direct-Growth has ₹893 Crores worth of assets under management (AUM) as on 30/09/2023 and is medium-sized fund of its category. The fund has an expense ratio of 1.29%, which is higher than what most other Focused funds charge.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
ALLOCATION BY MARKET CAPITALIZATION
DSP Focus Direct Plan-Growth is a Focused mutual fund scheme from Dsp Mutual Fund. This fund has been in existence for 10 yrs 11 m, having been launched on 01/01/2013. DSP Focus Direct Plan-Growth has ₹1,914 Crores worth of assets under management (AUM) as on 30/09/2023 and is medium-sized fund of its category. The fund has an expense ratio of 1.08%, which is higher than what most other Focused funds charge.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
ALLOCATION BY MARKET CAPITALIZATION
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