Focused mutual funds invest in a concentrated portfolio of maximum 30 stocks across any market capitalisation. This concentrated approach means each stock has a higher weightage in the portfolio, which can amplify both gains and losses. Focused funds suit experienced investors who are comfortable with higher concentration risk in exchange for potentially higher returns from the fund manager’s best ideas.
SEBI limits focused funds to a maximum of 30 stocks, making them fundamentally different from diversified funds that may hold 50-80 stocks. The concentrated nature means stock selection becomes critical, and the fund manager’s conviction plays a much larger role in performance.
| # | Fund Name | NAV (₹) | 1Y Return ▼ | 3Y CAGR | 5Y CAGR |
|---|---|---|---|---|---|
| 1 | SBI FOCUSED FUND | 430.28 | +9.69% | +17.32% | +14.08% |
| 2 | ITI Focused Fund | 16.83 | +8.42% | +19.06% | — |
| 3 | Motilal Oswal Focused Fund - Direct Plan Growth Option | 54.98 | +7.52% | +11.91% | +9.39% |
| 4 | quant Focused Fund - Growth Option | 100.84 | +6.36% | +17.68% | +13.65% |
| 5 | Union Focused Fund - Direct Plan - Growth Option | 28.06 | +5.85% | +13.38% | +12.27% |
| 6 | Kotak Focused Fund- Direct Plan- Growth option | 28.73 | +5.55% | +16.05% | +13.98% |
| 7 | Old Bridge Focused Fund | 12.86 | +4.98% | — | — |
| 8 | HSBC Focused Fund | 27.40 | +3.02% | +15.82% | +14.04% |
| 9 | Mahindra Manulife Focused Fund | 29.23 | +1.73% | +18.34% | +16.85% |
| 10 | Aditya Birla Sun Life Focused Fund - Growth | 158.66 | -0.52% | +14.62% | +12.42% |
| 11 | Tata Focused Fund | 24.96 | -0.60% | +13.30% | +12.68% |
| 12 | Bandhan Focused Fund | 101.94 | -0.77% | +16.16% | +13.13% |
| 13 | ICICI Prudential Focused Equity Fund | 103.33 | -0.98% | +18.88% | +16.97% |
| 14 | JM Focused Fund (Direct) - Growth Option | 22.52 | -1.23% | +15.10% | +14.06% |
| 15 | Nippon India Focused Fund - Direct Plan Growth Plan - Growth Option | 130.84 | -1.77% | +12.55% | +12.03% |
| 16 | Edelweiss Focused Fund | 16.87 | -2.03% | +14.52% | — |
| 17 | Sundaram Focused Fund (Formerly Known as Principal Focused Multicap Fund)- Direct Plan - Growth Option | 171.70 | -2.05% | +11.36% | — |
| 18 | 360 ONE Focused Fund | 52.19 | -2.13% | +13.07% | +13.36% |
| 19 | HDFC Focused Fund - Growth Option | 251.10 | -2.20% | +17.19% | +18.96% |
| 20 | DSP Focused Fund | 58.62 | -3.32% | +15.26% | +11.71% |
Data sourced from AMFI & mfapi.in. Returns are annualised CAGR. Past performance doesn't guarantee future results. Last updated: 07 Jun 2026
Frequently Asked Questions
How many stocks do focused funds hold?
SEBI mandates that focused funds can hold a maximum of 30 stocks. Most focused funds hold between 20-30 stocks, with each stock having a meaningful allocation in the portfolio.
Are focused funds riskier than diversified funds?
Yes, focused funds carry higher concentration risk since poor performance of a few stocks can significantly impact overall returns. However, when stock selection is right, they can deliver superior returns.
Who should invest in focused funds?
Focused funds are suitable for experienced investors with high risk tolerance who want to benefit from a fund manager’s highest-conviction stock picks. They work best as a supplementary holding in a diversified portfolio.
What is the ideal allocation to focused funds?
Most financial advisors suggest limiting focused fund allocation to 10-20% of your total equity portfolio, keeping the rest in diversified funds for better risk management.