The common investors of the country are increasingly turning to mutual funds. Meanwhile, common investors are also showing a lot of interest in focused mutual funds. The asset base of focused mutual funds investing in limited shares increased by 31 percent to Rs 1.43 lakh crore in the first quarter of the current financial year. Let us tell you that focused mutual fund is a type of equity mutual fund that invests in limited or small number of shares. According to SEBI rules, focused mutual funds can invest in a maximum of 30 shares.
Up to 60 percent return last year
According to industry data, some focused funds like Invesco India Focused Fund, Mahindra Manulife Focused Fund, JM Focused Fund and HDFC Focused 30 Fund have delivered massive returns of 40-60 per cent last year. The fund manager of a focused mutual fund has to be very careful while selecting stocks as he has to identify the best investment opportunities in the market without any bias towards any particular market valuation or sector.
AUM of focused funds stood at Rs 1.43 lakh crore in the first quarter of the current financial year
According to data from the Association of Mutual Funds in India (AMFI), the AUM of focused funds rose to Rs 1.43 lakh crore in the April-June quarter of the current financial year from Rs 1.09 lakh crore in the first quarter of the previous financial year. Anand Rathi Wealth Limited Deputy CEO Firoz Aziz said that this increase in AUM shows the attractiveness of focused funds as an option for portfolio management services.
Advice for investing in focused funds through SIP
Experts believe that investing in focused funds through SIPs is a sensible strategy in the current market environment. These funds invest in fewer stocks, so SIPs can help reduce risk by increasing the investment over time. In total, different mutual fund houses offer 31 schemes in this category. These schemes have given returns ranging from 19 to 60 percent in the last one year.
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