Top 5 focused mutual funds outperforming the Benchmark Index over 5 years

As of April 30, 2024, the Association of Mutual Funds in India (AMFI) data reveals there are 28 focused mutual fund schemes with total assets under management (AUM) amounting to ₹1.33 lakh crore. These schemes have a total of 50.87 lakh folios.

Understanding Focused Mutual Funds

Focused mutual funds are investment schemes that concentrate on a limited number of stocks, typically not exceeding 30. These funds must allocate at least 65% of their portfolio to equity and equity-related instruments, adhering to the Securities and Exchange Board of India's (SEBI) categorization.

Top Performing Focused Mutual Funds

When evaluating mutual fund investments, historical returns are a key metric for investors. Here, we list the top five focused mutual funds that have surpassed the benchmark index over the past five years. The benchmarks for these funds are usually the BSE 500 Total Return Index or the NIFTY 500 Total Return Index.

Quant Focused Fund: Delivered the highest five-year return of 23.15%.

360 ONE Focused Equity Fund: Achieved a five-year return of 22.28%.

ICICI Prudential Focused Equity Fund: Posted a five-year return of 21.46%.

HDFC Focused 30 Fund: Reported a five-year return of 20.97%.

Franklin India Focused Equity Fund: Generated a five-year return of 19.60%.

Performance Table

Focused Mutual Funds 5-Year Returns (%)

Quant Focused Fund 23.15

360 ONE Focused Equity Fund 22.28

ICICI Prudential Focused Equity Fund 21.46

HDFC Focused 30 Fund 20.97

Franklin India Focused Equity Fund 19.60

Source: AMFI; Returns as on May 17, 2024

Investment Considerations

While historical returns provide insight into a fund's performance, they do not guarantee future results. Additionally, investors who have existing investments via systematic investment plans (SIPs) are generally advised against shifting their funds to high-performing schemes, as this strategy may not be beneficial in the long run. A report by Motilal Oswal highlights this recommendation.

Disclaimer:

This information is provided for educational purposes only. Investors should consult with a SEBI-registered investment advisor before making any investment decisions.