Why Focused Mutual Funds Are the Key to Targeted Financial Growth?
As far as accruing wealth by means of mutual funds, the major determining factor is the necessity to select the type of investment. The popularity of focused mutual funds is attributed to the concentrated portfolio of high-potential stocks that the funds have, and this is why they provide a potential for big growth. The funds seek to offer a higher gain than the traditional diversified mutual funds by being highly selective about the small number of stocks selected. It is time to look straight into the market and come up with some of the best focused mutual funds of 2019 and read why they might be a good idea to add to your portfolio.
The Appeal of Focused Mutual Funds
Targeted mutual funds are meant to cover fewer and specifically chosen stocks, usually 20 to 30. The small-sized portfolio enables the fund managers to do more research on individual stocks and concentrate on companies with high growth opportunities. Focused mutual funds operate in the top opportunities of the market since they emphasized few firms compared to diversified funds, where money is invested in a wide range of firms. This focused strategy is associated with greater returns but with greater risk, too. These funds are the most appropriate for investors who are risky and want growth in specific funds.
Top Focused Mutual Funds and Their Performance
- HDFC Focused 30 Fund – Growth
- Returns: 29.3%
- Lock-In: No lock-in
- Minimum Investment: ₹100
- Choice Rating: ★★★★★
It is a fund centered on 30 high potential stocks, and it gives the investors balanced risk to reward proportion. It is impressive with its returns thus making it one of the best focused mutual funds to make long term wealth.
2. Bandhan Focused Fund – Growth
- Returns: 20.4%
- Lock-In: No lock-in
- Minimum Investment: ₹1,000
- Choice Rating: ★★★★☆
Bandhan Focused Fund has slightly lower expected returns than others and is an ideal investment option for conservative investors seeking a stable growth scheme with no lock-in.
3. ICICI Prudential Focused Equity Fund – Growth
- Returns: 26.2%
- Lock-In: No lock-in
- Minimum Investment: ₹5,000
- Choice Rating: ★★★★☆
ICICI Prudential fund is concentrated on a small equity stock portfolio, which is why it is amongst the favourite funds in this segment. It also has steady returns and its minimum investment is relatively higher, this is suitable to investors who require professional management that yield higher returns.
4. 360 One Focused Fund – Growth
- Returns: 23.2%
- Lock-In: No lock-in
- Minimum Investment: ₹1,000
- Choice Rating: ★★★★☆
This fund is favorable in terms of risk and returns combination. It can be used by investors interested in investing in high-potential stocks but with average portfolio concentration approach.
5. Franklin India Focused Equity Fund – Growth
- Returns: 24.2%
- Lock-In: No lock-in
- Minimum Investment: ₹5,000
- Choice Rating: ★★★★☆
Franklin India focused equity fund with an excellent track record over a long time has established itself as one of the fairly stable funds when it comes to generating returns. It has a comparatively large minimum investment becoming the best choice for serious investors who desire long-term growth.
Why Opt for Focused Mutual Funds?
The basic strengths of best sector mutual funds are that these funds can give better returns, would have further researched the market and they are free to go after the growth sectors. They can spend more in-depth analysis on fewer stocks because of the limited pool of stocks and fund managers will have time to ensure that only the well performing stocks make it onto the portfolio. Such sums especially appeal to investors interested in the fancy growth of specific sectors or industries.
Conclusion: Investing with a Focused Strategy
Concentrated mutual funds can allow the investor to invest in a high-quality, small portfolio of stocks that can provide a huge growth potential. The above listed funds present a strong performance and flexibility with zero lock-ins. They are a good choice of funds by the investors who can tolerate a higher risk to realize a bigger prize.
