10 Best Focused Funds to Invest in 2025

Just like other areas of life, having a focused approach towards investing can be rewarding. Emphasising on a particular investment approach, sector, or a selected number of stocks can positively impact your portfolio. A focused mutual fund is a mutual fund that invests in a limited number of stocks. Focused funds have a concentrated approach towards investing compared to other funds that diversify across multiple stocks or sectors.

In this article, we will explore the best focused funds to choose from and how they can help you maximise your returns.

Best Focused Mutual Funds 2025

Here are some of the best focused funds to invest in 2025 based on their 3-year annualised returns.

(Data as of February 25, 2025)

Overview of the Best Focused Mutual Funds

Let’s explore some details of the best focused mutual funds in 2025.

(Please note, the data is as of February 25, 2025)

HDFC Focused 30 Fund Direct Plan Growth

• 3Y Annualised Returns – 23.28%
• Carries very high risk
• Minimum SIP – ₹100
• Assets Under Management (AUM) – ₹15,687 crore
• 83.9% funds allocated to equity, 12.7% held as cash
• Expense Ratio – 0.67%
• Inception Date – September 17, 2004

Invesco India Focused Fund Direct Plan Growth

• 3Y Annualised Returns – 19.35%
• Carries very high risk
• Minimum SIP – ₹500
• AUM – ₹3,360 crore
• 93.6% funds allocated to equity, 4.4% held as cash
• Expense Ratio – 0.58%
• Inception Date – September 29, 2020

Mahindra Manulife Focused Fund Direct Growth

• 3Y Annualised Returns – 19.24%
• Carries very high risk
• Minimum SIP – ₹500
• AUM – ₹1,883 crore
• 99.2% funds allocated to equity, 0.8% held as cash
• Expense Ratio – 0.44%
• Inception Date – November 17, 2020

ICICI Prudential Focused Equity Fund Direct Growth

• 3Y Annualised Returns – 19.38%
• Carries very high risk
• Minimum SIP – ₹100
• AUM – ₹10,064 crore
• 95.9% funds allocated to equity, 2.5% held as cash
• Expense Ratio – 0.64%
• Inception Date – May 28, 2009

Quant Focused Fund Direct Growth

• 3Y Annualised Returns – 17.16%
• Carries very high risk
• Minimum SIP – ₹1,000
• AUM – ₹1,063.53 crore
• 98.3% funds allocated to equity, 1.4% allocated to debt, and 0.3% held as cash
• Expense Ratio – 0.67%
• Inception Date – January 1, 2013

Franklin India Focused Equity Fund Direct Growth

• 3Y Annualised Returns – 15.40%
• Carries very high risk
• Minimum SIP – ₹500
• AUM – ₹11,553 crore
• 95.6% funds allocated to equity, 0.2 % to debt, and 4.2% held as cash
• Expense Ratio – 1%
• Inception Date – January 1, 2013

Canara Robeco Focused Equity Fund Direct Growth

• 3Y Annualised Returns – 15.81%
• Carries very high risk
• Minimum SIP – ₹1,000
• AUM – ₹2,440 crore
• 97.1% funds allocated to equity, 2.9% held as cash
• Expense Ratio – 0.53%
• Inception Date – May 17, 2021

Tata Focused Equity Fund Direct Growth

• 3Y Annualised Returns – 14.24%
• Carries very high risk
• Minimum SIP – ₹100
• AUM – ₹1,739 crore
• 95.2% funds allocated to equity, 4.8% held as cash
• Expense Ratio – 0.64%
• Inception Date – December 6, 2019

360 ONE Focused Equity Fund Direct Growth

• 3Y Annualised Returns – 15.19%
• Carries very high risk
• Minimum SIP – ₹1,000
• AUM – ₹6,885 crore
• 95.6% funds allocated to equity, 4.4% held as cash
• Expense Ratio – 0.61%
• Inception Date – October 30, 2014

Nippon India Focused Equity Fund Direct Growth

• 3Y Annualised Returns – 14.52%
• Carries very high risk
• Minimum SIP – ₹100
• AUM – ₹7,874 crore
• 93.1% funds allocated to equity and 6.9% held as cash
• Expense Ratio – 1.17%
• Inception Date – January 1, 2013

Benefits of Investing in a Focused Fund

There are multiple benefits of investing in a focused mutual fund.

Possibility of High Returns

They invest primarily in equities focussing on a limited number of stocks. Although this raises the risk, it also increases the possibility of generating higher returns.

Focused Approach

As the name suggests, focused funds offer investors the opportunity to invest in a fund with a focused approach. These funds focus on a few sectors and companies, allowing investors to capitalise on the growth of these companies.

Professional Management

The management of a focused fund is even more important as it is crucial to select the right stocks and make sound investment decisions. Investing in a focused mutual fund reduces the investor’s need to select the right stocks, making it suitable for investors looking for a concentrated approach.

Prevents Over-Diversification

Regular mutual funds invest in a significant number of companies. Since a focused mutual fund is limited to 30 holdings, it reduces the risk of over-diversifying and spreading yourself too thin.

Key Things to Remember When Investing in a Focused Mutual Fund

Here are some pointers to keep in mind before investing in a focused mutual fund.

• Focused mutual funds offer the potential of higher returns, but it also increases the risk.
• These funds are suitable for investors looking for a concentrated approach and have a higher risk appetite.
• Gains on the funds attract capital gains tax depending on the investment period.
• These funds can be a suitable option for investors with a 5-7 year horizon.
• Compare several fund’s managers, past performance, associated costs, and fees.

Conclusion

For investors with a higher risk appetite and looking for exposure to a limited number of stocks, a focused mutual fund can be a viable option. Investing in focused mutual funds can help investors benefit from a concentrated approach. However, it is important to be aware that the risk with these funds is high as well.

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.