Just In
Don't Miss
-
Pegasus: Govt was the buyer says Chidambaram after Israeli envoy’s remarks -
Antidepressant Fluvoxamine May Reduce Risk Of COVID-19 Hospitalisation: Lancet Study -
2021 AIBA Men’s World Boxing Championships: Rohit Mor and Akash Sangwan progress into Last-16 -
Katrina Kaif And Vicky Kaushal Will Be New Neighbours Of Anushka Sharma And Virat Kohli Post Marriage? -
Instagram Now Allows You To Add Links On Story Without 10K Followers; How To Do It -
Tata Inks Deal To Supply BluSmart Mobility With 3500 XPRES T EVs -
RVUNL Admit Card 2021 Released At energy.rajasthan.gov.in, Here’s How To Download -
Karnataka's Ten Best Winter Destinations
3 Best Focused Equity Funds For SIP In 2021 Based On 1 Year Returns Over 70%
A focused equity mutual fund is a category similar to Multicap or Flexi Cap funds that operate in a restricted number of stocks, up to a total of 30 companies, in accordance with the guidelines set by the Securities and Exchange Board of India (SEBI). Hence, these funds are free to invest in any market category, such as large-cap, midcap, or small-cap, resulting in a well-diversified or focused portfolio.
Should I Invest?
Although diversification allows investors to optimize returns while reducing risk potential and market unpredictability, these funds can only be a viable pick in the current market scenario if you have a long-term financial objective of more than 5 years. The rationale for choosing focused equity funds for your first SIP is that this fund category achieved a portfolio record of 45,34,024, a net positive inflow of Rs 114.45 Cr, a net Assets Under Management (AUM) of Rs 91,829.12 Cr, and an average net AUM of Rs 91,656.51 Cr as of September 30th, 2021.
These funds can be a strong choice for maximising risk-adjusted returns because they have their equity allocation across selected companies based on a precise study by the fund managers. The risk associated with these funds is higher than that of well-diversified mutual funds, since focused funds may perform well for investors who are willing to accept a higher risk by investing in handpicked stocks in consideration to create long-term wealth.
In this volatile market, here are the top three focused equity funds that have performed well and generated over 70% returns in the previous year, and you may also consider them for initiating a SIP-based on your risk tolerance capacity.
Nippon India Focused Equity Fund Direct-Growth
It is a focused equity fund from the fund house Nippon India Mutual Fund. The 1-year returns for Nippon India Focused Equity Fund Direct-Growth are 75.38 percent. As of September 30th, 2021, it had provided 15.10 percent average yearly returns since its inception. The fund's equity allocation is massively skewed toward the financial, services, FMCG, construction, and technology sectors. State Bank of India, ICICI Bank Ltd., Infosys Ltd., HDFC Bank Ltd., and Axis Bank Ltd. are the fund's top five holdings.
The fund's expense ratio is 2.01%, which is higher than the expense ratios of most other funds in the same category. The fund's Net Asset Value (NAV) is Rs 78.96 as of October 28th, and its Assets Under Management (AUM) is Rs 5,818.16 Cr as of September 30th, 2021. Value Research has given the fund a three-star rating, and SIPs can be started in the fund with as little as Rs 500.
| Particulars | 1 Year CAGR % | 3 Year CAGR % | 5 Year CAGR % | Since Inception |
|---|---|---|---|---|
| Nippon India Focused Equity Fund | 75.38 | 20.99 | N.A | 15.1 |
| B: S&P BSE 500 TRI | 63.1 | 19.73 | N.A | 16.17 |
| AB: S&P BSE Sensex TRI | 56.96 | 19.03 | N.A | 17.99 |
| Source: mf.nipponindiaim.com. Data as on 30/09/2021 |
Franklin India Focused Equity Fund Growth
Franklin India Focused Equity Fund Direct-Growth is a focused mutual fund scheme from Franklin Templeton Mutual Fund with a 1-year return of 85.29% and since its inception it has generated a yearly average return of 14.12% as of 30/09/2021. The fund has its major equity allocation across the financial, construction, energy, healthcare, and communication sectors. State Bank of India, ICICI Bank Ltd., Axis Bank Ltd., National Thermal Power Corp. Ltd., and Larsen & Toubro Ltd. are the fund's top five holdings.
The fund's expense ratio is 1.91 percent, which is higher than the expense ratios of most other funds in the Focused Equity Fund category. As of October 28th, the fund's Net Asset Value (NAV) is Rs 66.51, and its Assets Under Management (AUM) is Rs 7835.97 Cr as of September 30th, 2021. The fund has a three-star rating from Value Research, and SIPs may be started with Rs 500 in the fund.
| Compounded Annualized Growth Rate Performance | Fund | Nifty 500 | Nifty 50 |
|---|---|---|---|
| Last 1 Year | 85.29% | 32.50% | -- |
| Last 3 Years | 20.37% | 15.79% | -- |
| Last 5 Years | 15.48% | 13.54% | -- |
| Last 10 Years | 19.20% | 12.60% | -- |
| Last 15 Years | -- | 11.02% | -- |
| Since Inception (26/07/2007) | 14.12% | -- | -- |
| Data as of 30/09/2021. Source: franklintempletonindia.com |
HDFC Focused 30 Fund Direct Plan Growth
HDFC Focused 30 Fund Direct Plan-Growth is a focused mutual fund plan offered by HDFC Mutual Fund, with a one-year return of 75.48 percent. It has provided 15.37 percent average yearly returns since its inception. The fund has its major equity allocation across the Financial, Energy, Construction, Engineering, Technology sectors. The top five holdings of the fund are ICICI Bank Ltd., State Bank of India, HDFC Bank Ltd., Reliance Industries Ltd., and Infosys Ltd.
The fund's expense ratio is 2.67 percent, which is much higher than the expense ratios of most other Focused funds. The fund's Net Asset Value (NAV) is Rs 125.10 as of October 28th, and its Assets Under Management (AUM) is Rs 838.19 Cr as of September 30th, 2021. With a minimum monthly contribution of Rs 500, you can start SIP in this fund.
| Fund Name | 3 Months | 6 Months | 1 Year | 3 Years | 5 Years |
|---|---|---|---|---|---|
| HDFC Focused 30 Fund (G) | 15.35% | 29.25% | 75.48% | 17.35% | 11.84% |
| S&P BSE 200 | 11.96% | 20.45% | 56.69% | 20.75% | 15.41% |
| NIFTY | 13.17% | 19.89% | 53.19% | 20.32% | 15.67% |
| SENSEX | 13.92% | 20.53% | 51.08% | 20.75% | 16.53% |
| Data as of 30th September 2021. Source: hdfcsec.com |
3 Best Focused Equity Mutual Funds In 2021
| Funds | 1 mth returns | 6 mth returns | 1 Yr returns | 3 Yr returns | 5 Yr returns | Since inception |
|---|---|---|---|---|---|---|
| Nippon India Focused Equity Fund | 2.36% | 22.20% | 76.86% | 24.53% | 14.50% | 14.93% |
| Franklin India Focused Equity Fund | 2.35% | 25.21% | 76.74% | 24.25% | 15.41% | 14.20% |
| HDFC Focused 30 Fund | 7.79% | 29.97% | 76.01% | 19.46% | 12.99% | 13.69% |
| Source: Groww |
Disclaimer
The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advice to buy or sell stocks, gold, currency, or other commodities. Investors should certainly not take any trading and investment decision based only on information discussed on GoodReturns.in We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles. Please consult a professional advisor. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates, and authors do not accept culpability for losses and/or damages arising based on information in GoodReturns.in
