Mutual Funds: 5 best focused funds managed to beat the benchmark index in the past 5 years

There are 28 focused schemes in the mutual fund universe with total assets under management (AUM) of 1.33 lakh crore, shows the AMFI data as on April 30, 2024. Total number of folios in this category stand at 50.87 lakh.

Vimal Chander Joshi
First Published20 May 2024
Highest five-year-return of 23.15 percent were delivered by Quant Focused Fund followed by 360 One Focused Equity Fund.
Highest five-year-return of 23.15 percent were delivered by Quant Focused Fund followed by 360 One Focused Equity Fund.

Prior to deciding to invest in a mutual fund scheme, investors tend to view the historical returns and evaluate them on that basis.

Here, we list out the top performing focused mutual funds which have managed to beat the benchmark index in the past 5 years. A benchmark index is a yardstick against which the performance of a mutual fund can be measured. For instance, in the case of focused mutual funds, the benchmark index is either BSE 500 Total Return Index or NIFTY 500 Total Return Index.

Let us first understand what exactly are focused mutual funds

ALSO READ | Individual investors' share in mutual fund AUM surges 44% in a year; equity schemes find more takers, shows AMFI data

Focused mutual funds

These are mutual fund schemes, which are focused on the number of stocks with at least 65 percent in equity and equity related instruments. The maximum number of stocks in these schemes are 30, as per the Sebi’s categorisation of mutual fund schemes.

There are 28 focused mutual funds with total assets under management (AUM) of 1.33 lakh crore, shows the AMFI data as on April 30, 2024. Total number of folios in this category stands at 50.87 lakh.

As one can see in the table below, the highest five-year-return of 23.15 percent was delivered by Quant Focused Fund followed by 360 One Focused Equity Fund.

Other mutual fund schemes which managed to beat the benchmark index were ICICI Prudential Focused Equity Fund, HDFC Focused 30 Fund and Franklin India Focused Equity Fund.

Focused mutual funds                                             5-year-returns (%)
Quant Focused Fund                                            23.15
360 ONE Focused Equity Fund                             22.28
ICICI Prudential Focused Equity Fund                     21.46
HDFC Focused 30 Fund                                         20.97
Franklin India Focused Equity Fund                       19.60

(Source: AMFI; Returns as on May 17, 2024)

It is important to mention here that those invested in other schemes via systematic investment plans (SIPs) are not recommended to transfer their funds to a high performing scheme. This strategy usually does not pay off in the long run, a recently-released Motilal Oswal report recently revealed. Read this Livemint article for more details.

Moreover, past high returns of a mutual fund scheme do not guarantee its future returns.

Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.

 

 

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