What Is a Focused Fund? Explained in 5 Slides

Simran

A Focused Fund invests in 20–30 select stocks, aiming for higher returns than diversified funds.

Fund managers research and select high-potential stocks, concentrating capital in fewer companies.

Key traits: concentrated portfolio, active management, multi-cap flexibility, higher volatility.

Benefits: high alpha potential, targeted exposure. Risks: high volatility, limited diversification.

Example funds: SBI Focused Equity, ICICI Prudential Focused Equity. Best for long-term high-risk investors.

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