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Home » Our Products » Mutual Funds » Equity » Focused Fund

Focused fund

A focused fund is an equity mutual fund investing in a limited number of stocks. As per SEBI guidelines, a focused fund can invest in a maximum of 30 stocks. Other equity mutual funds typically hold 50-100 stocks. Some focused mutual funds also state their objective to focus on the large-cap or mid-cap stocks. Other funds do not specify any such category focus and follow a bottom-up stock selection investment strategy. The objective of focused funds is to deliver high returns by investing in a limited number of quality companies with growth potential. 

Suitability:

The entire strategy of focused funds is to hit the bull’s eye with the right stocks and earn a high return. Investors who are willing to face market volatility over a longer time horizon of 5 years and plus in expectation of higher returns should look at this category.

Minimum Investment:

The minimum investment varies from scheme to scheme. It could range between Rs.100/ – to Rs. 5,000/-.

Taxability:

Focussed Funds receive the same tax treatment as other equity funds.

  • Short term capital gain (less than one year): 15% of gain.
  • Long term capital gain (more than one year): 10% of gain in excess of Rs one lakh per year.

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