Focused Equity Mutual Fund Schemes: A Closer Look at Concentrated Portfolios and Potential Returns

Investors looking to earn better returns through mutual funds are turning to focused equity schemes, which offer a concentrated portfolio of maximum 30 stocks. These schemes have no restrictions on market capitalisations or sectors, allowing fund managers to make bold investment decisions based on their conviction.

While a focused portfolio can lead to significant gains if the right calls are made, it also comes with the risk of substantial losses if a few investments go wrong. This high-risk, high-reward approach appeals to investors with a higher risk appetite and a longer investment horizon.

Recommended focused equity mutual fund schemes for July 2024 include 360 ONE Focused Equity Fund, SBI Focused Equity Fund, Sundaram Focused Fund, and Quant Focused Fund. These schemes have been selected based on parameters such as mean rolling returns, consistency over the last three years, downside risk, and outperformance relative to the market.

Investors interested in exploring the potential of focused equity schemes should keep track of their investments and stay informed about market trends. While past performance is not a guarantee of future results, a well-researched investment strategy can help investors navigate the ups and downs of the market.

Overall, focused equity schemes offer a unique opportunity for investors to take concentrated bets on specific stocks and sectors, potentially leading to higher returns in the long run.