Focused funds hold a maximum of 30 stocks and at least 65% in equity, so each pick matters more than in a diversified fund. The live table below ranks every focused scheme in AMFI data by 1-year return with 3-year and 5-year CAGR.
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 | Motilal Oswal Focused Fund | 65.32 | +26.55% | +15.37% | +10.79% |
| 2 | Old Bridge Focused Fund - Direct Plan | 14.08 | +14.25% | — | — |
| 3 | Quant Focused Fund | 106.76 | +9.75% | +14.42% | +13.04% |
| 4 | SBI FOCUSED FUND | 467.44 | +9.61% | +15.00% | +10.82% |
| 5 | HSBC Focused Fund | 30.10 | +6.29% | +14.27% | +11.36% |
| 6 | ITI Focused Fund | 17.11 | +5.43% | +16.87% | — |
| 7 | Union Focused Fund | 30.48 | +4.68% | +11.15% | +8.86% |
| 8 | Invesco India Focused Fund | 34.39 | +3.75% | +20.25% | +14.11% |
| 9 | 360 ONE Focused Fund | 58.04 | +3.02% | +11.11% | +10.64% |
| 10 | Bandhan Focused Fund | 111.34 | +2.23% | +14.95% | +11.71% |
| 11 | Kotak Focused Fund | 31.47 | +1.22% | +14.34% | +10.74% |
| 12 | Aditya Birla Sun Life Focused Fund | 174.49 | +1.20% | +12.05% | +9.62% |
| 13 | LIC MF Focused Fund | 24.45 | +0.90% | +9.50% | — |
| 14 | Sundaram Focused Fund | 187.68 | +0.44% | +9.71% | — |
| 15 | DSP Focused Fund | 64.93 | -1.34% | +12.04% | +10.05% |
| 16 | ICICI Prudential Focused Fund | 114.38 | -1.35% | +16.30% | +14.08% |
| 17 | JM Focused Fund | 24.32 | -1.85% | +11.75% | +11.14% |
| 18 | Nippon India Focused Fund | 137.54 | -2.01% | +8.94% | +9.02% |
| 19 | Axis Focused Fund | 66.71 | -2.38% | +8.90% | +3.11% |
| 20 | Edelweiss Focused Fund | 18.15 | -3.32% | +11.43% | — |
| 21 | HDFC Focused Fund | 281.00 | -3.52% | +14.82% | +16.49% |
| 22 | Mirae Asset Focused Fund | 29.16 | -3.64% | +7.79% | +5.43% |
| 23 | Mahindra Manulife Focused Fund | 30.01 | -4.31% | +11.99% | +11.92% |
| 24 | UTI Focused Fund | 17.36 | -4.50% | +9.10% | +8.70% |
| 25 | Canara Robeco Focused Fund | 22.39 | -5.12% | +11.76% | +11.07% |
| 26 | Baroda BNP Paribas Focused Fund | 25.03 | -5.69% | +7.84% | — |
| 27 | Tata Focused Fund | 25.70 | -6.30% | +8.71% | +8.76% |
| 28 | Franklin India Focused Equity Fund | 116.94 | -11.99% | +6.71% | +8.40% |
Data sourced from AMFI & mfapi.in. Returns are annualised CAGR. Past performance doesn't guarantee future results. Last updated: 12 Nov 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.
What Are Focused Mutual Funds?
Focused mutual funds are equity funds that hold a maximum of 30 stocks in their portfolio: significantly fewer than diversified funds that typically hold 50-80 stocks. This concentrated approach means each stock pick has a bigger impact on the fund’s performance. SEBI defines a focused fund as one that can invest across any market cap but must limit total holdings to 30, making it a high-conviction strategy where the fund manager bets big on their best ideas.
The High-Conviction Advantage
The logic behind focused funds is simple: a fund manager’s best 30 ideas should outperform their best 70 ideas. By concentrating capital in fewer stocks, each holding has a 3-5% weight rather than the 1-2% typical in diversified funds. When a top holding delivers strong results (say 50% return in a year), it meaningfully moves the fund’s NAV. In a diversified fund with 70 stocks, the same stock’s performance gets diluted.
Historically, top focused funds have delivered 14-17% CAGR over 10-year periods, sometimes outperforming diversified peers by 2-3% annually during periods when their conviction bets pay off. However, the same concentration works in reverse. A few poor stock picks can significantly drag performance. This is why focused funds are best suited for investors who understand and accept the higher variance in outcomes compared to diversified funds.
Who Should Invest in Focused Funds?
Focused funds are not ideal as your only equity fund. They work best as a satellite holding (15-25% of equity allocation) alongside a diversified core like a flexi cap or index fund. They suit investors who: have a long horizon (7+ years), can tolerate above-average volatility, want exposure to a specific manager’s high-conviction picks, and already have a diversified base portfolio.
Avoid focused funds if you’re a first-time investor, have a short time horizon, or if this would be your only equity investment. The 30-stock concentration means sector or stock-specific risks can cause significant short-term underperformance, and you need other diversified holdings to balance this out. Start with a SIP in a broad-based fund first, then add a focused fund once your portfolio has a solid foundation.
Evaluating Focused Fund Managers
In focused funds, the fund manager matters more than in any other category. A skilled stock picker can generate significant alpha; a mediocre one can destroy value with concentrated wrong bets. Evaluate the manager’s personal track record across funds and market cycles, the conviction ratio (how long top holdings are held. Ideally 2-3+ years), portfolio turnover (lower is better in concentrated portfolios), and the overlap with the fund’s benchmark. Use our MF returns calculator to track your actual returns and compare against broader market CAGR.
Before you pick among focused funds, read the factsheet for the top 10 holdings. Strong focused funds explain why they hold so few stocks, and the best focused funds keep turnover and costs in check.
When you compare focused funds, check the number of holdings, which is capped at 30, and the weight of the top five stocks. Focused funds can swing harder than diversified funds, so match the fund to your comfort with risk.
Focused Funds: Key Takeaways
Concentration cuts both ways: a few good picks can lift returns and a few bad ones can drag them down, so focused funds suit investors with a 5-year or longer horizon who already hold a diversified core. Check the top 10 holdings and the market cap spread on the factsheet. Gains are taxed under equity rules: 20% on units sold within 12 months and 12.5% on gains above Rs 1.25 lakh a year after that. Compare other categories on the mutual fund categories hub, see flexi cap funds as a more diversified option, estimate returns with the SIP calculator and read scheme documents on AMFI and SEBI before you invest. Mutual fund investments are subject to market risks.