TOP 5 FOCUS FUNDS TO INVEST IN 2019
Funds which hold a small variety of stocks are focus funds. Focus fund focuses on a limited number of sectors on a limited number of stocks, rather than holding a diversified mix of equity positions. It holds a position in 20-30 companies or less.
Examples of focus fund:
Normally investing not less than 80% of assets in stocks
Investing in domestic and foreign issuers
Normally investing primarily in common stocks
Normally investing in 30-80 stocks
Below are the top 5 focus funds
1. SBI Focused Equity fund
This focus fund provides the opportunity of long term capital to the investor. SBI focused equity fund follows a bottom-up approach. It also invests in companies across market sectors and capitalization. This scheme invests in top companies like SBI, HDFC Bank, Bajaj Finance, Divi’s laboratories, P&G etc. hence it is one of the good funds to invest in.
Sub-funds dedicated to specific investment are:
Contrarian (investment in stocks currently out of favour)
Must Read: Top 5 value funds to invest in 2019
2. Axis Focus 25 Direct fund
It invests to generate long term capital appreciation. Axis focus 25 direct fund invests in a concentrated portfolio of equity related instruments and equity of up to 25 companies. This focus fund invests in the companies which have the capability to survive through their business cycles and not being affected by short term market fluidity. This focus fund has the benefit of higher exposure. Probably it is best for long term goals such as children’s future and their education.
3. Sundaram Select Focus fund
This scheme invests in a maximum of 30 stocks of large-cap companies. Sundaram select focus fund is suitable for the investors who are aiming capital appreciation. All retail investors can access this focus fund and also they can start the SIP with INR 250 per month. It has huge potential for growth because of the small fund size.
4. JM Core 11 fund
It can give higher returns because it is suitable for investors who are aiming regular income and capital appreciation over the long term. If you are investing in this mutual fund you should know the market because your principle is at risk. JM Core 11 fund invests in companies like Asian Paints, Titan, HDFC Bank, Bajaj Finance and Larsen and Toubro. It has a good mix of construction (17.6%), consumer durables (19.4%), financials (28%) etc. hence it can be good for investment.
Must Read: What are the best stocks to buy in 2019
5. Aditya Birla Sun Life Focused Equity Fund
This fund only invests in 30 companies to achieve long term capital. Aditya Birla sun life focused equity fund focuses on companies like ITC, SBI, NTPC, HDFC Bank etc. Risk exposure is less in this focus fund, therefore, it is appropriate for the investors who are looking for long term goals.
Fund Type – Open-Ended
Class – Equity
Category – Focused
Min Investment – Rs. 1000/-
Consequently, these focus funds are suitable for the investors seeking for long term investment. Focus funds target the companies which have higher growth and competitive advantage.