Multibagger Funds: There are also some selected funds in the mutual fund market which invest in a very specific direction through their special strategy. That is why they are called Focused Equity Fund. This Diwali, you can also invest in these funds and earn such huge profits which would never have happened.
Focused Equity Funds are generally kept in the Flexicap category. Focused funds invest in fewer stocks than regular diversified schemes. By doing this their portfolio remains small. On an average, such funds focus on investing in 25-30 stocks.
Not only this, big bets are made on only a few of these 25-30 stocks. Statistics show that in the last 1 year, such funds have shown strong returns. Such funds have outperformed all other types of funds.
Mutual fund experts say that the portfolio of such funds is quite concentrated. Such schemes keep 5-9 percent of their assets in the form of cash. So that you can protect yourself in the event of major ups and downs. Or if there is any other investment opportunity, it can be taken advantage of. We are telling you about the funds which have given strong returns in the last 1 year.
Nippon India Focused Equity Fund tops this list. According to the data of Value Research, this fund has given about 80 percent returns in the last one year. The Asset Under Management (AUM) of this scheme is Rs 5818 crore. Its expense ratio for direct plans is 1.32 percent. The maximum holding of this fund is in financials. After that it has less than 10 per cent stake in FMCG and Construction.
Franklin India Focused Equity Fund is at number two in the list. Data from Value Research shows that it has given 79.8 per cent returns in one year. Its asset under management is Rs 7836 crore. Its expense ratio for direct plans is 1.12 per cent. The maximum holding of this fund is in financials. After that it also has investments in energy and construction.
HDFC Focused 30 is at number three. According to data from Value Research, this fund has given 78.5 per cent returns in the last one year. The asset under management of this scheme is Rs 838 crore. Its expense ratio for direct plans is 1.37 percent.
ICICI Prudential Focused Equity Fund is the fourth mutual fund. Data from Value Research says that the fund has given 69.5 per cent returns in 1 year. Talking about asset under management, it is Rs 2,256 crore. Its expense ratio for direct plans is 0.81 percent. The maximum investment of this fund is in technology stocks.
SBI Focused Equity Fund has also given strong returns in the last 1 year. This fund has given 67.7 per cent returns in the last one year. Its asset under management is Rs 20372 crore. Its expense ratio for direct plans is 0.72 percent. The maximum holding of this fund is in FMCG and Healthcare Sectors. Apart from this, it also has exposure in financial stocks.
Investing in any fund is not being advised by ABP News here. The information provided here is for informational purposes only. Mutual fund investments are subject to market risk, read all the plan documents carefully. The NAV of the schemes can fluctuate depending on the factors and forces influencing the security market including fluctuations in interest rates. The past performance of a mutual fund may not necessarily reflect the future performance of the schemes. The Mutual Fund does not guarantee or assure any dividend under any of the schemes and is subject to the availability and adequacy of distributable surplus. Investors are requested to review the prospectus carefully and seek expert professional advice regarding the specific legal, tax and financial implications of investing/participating in the scheme.
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