equity mutual funds Save the investor the hassle of choosing reliable stocks to build a rewarding investment portfolio. These funds invest in various securities and all the investor has to do is decide on an amount and invest in it. equity fund Those whose investment objective aligns with them. Equity funds hold stocks in their portfolio in a predetermined ratio. The decision is made by the fund manager to actively manage the portfolio and the AUM of the fund. AUM or Asset Under Management is the total value of the assets of a particular mutual fund scheme.

There are times when diversification Investment More companies in different sectors can limit the fund’s performance as not all can outperform at the same time. If one has a strong sense that a particular sector or industry has the potential to outperform, one usually tries to increase his/her portfolio exposure in that particular sector.

As per SEBI guidelines, concentrated money You should limit your portfolio allocation to a maximum of 30 stocks. Nevertheless, these funds are not restricted to a specific market cap and hence, can invest in stocks of small cap, mid cap as well as large cap companies. Neither are they sector specific, meaning that focused funds can invest in stocks related to any sector or industry.

Understanding Focused Funds

One thing is clear,
concentrated money Invest in a portfolio of stocks that does not exceed 30 counts. If you take a look at other equity funds, some may have market cap restrictions while others restrict their portfolio to a specific sector or industry. However, such equity funds do not have the obligation to invest in a specified number of shares and can include a wide range of stocks as per the investment objective and current market scenario. A concentrated fund may offer a concentrated portfolio as it includes a maximum of 30 stocks, but this equity fund operates on a strategy where it seeks to diversify its assets into a large number of stocks like other equity funds, rather than merely diversifying its assets. Targeted stocks.

Features of Focused Funds

In a focused fund, the money is allocated only to specific stocks. This can prove to be an advantage over equity funds that have diversified into a large number of stocks. In a contemporary market scenario, not all stocks may perform at the same time. Investing in a focused portfolio of carefully analyzed and curated stocks, such as a focused fund, can prove beneficial for investors in the long run.

As mentioned earlier, focused funds can invest in any company. They have the option to invest in stocks of companies from different sectors and industries spread across the market capitalization. The fund manager decides what percentage of the portfolio should be invested in small, mid and large cap markets. There are no restrictions and keeping in mind the market sentiment, the fund manager can consider which stocks to invest in.

Axis Focused 25 Fund


An open ended equity scheme investing in a maximum of 25 stocks investing in large cap, mid cap and small cap companies


investment objective

Generate long-term capital appreciation by investing in a focused portfolio of equities and equity-related instruments of up to 25 companies.

benefits

• The scheme invests in a focused portfolio of high conviction ideas (up to 25%).
• Focus on companies that have the ability to move through their business cycle without being affected by short-term market volatility.
• While this fund offers high risk leverage for the best ideas, the portfolio is well diversified across all sectors for risk management.
• Asset Class Benefit- Equity as an asset class has the ability to beat inflation and generate wealth over a long period of time.
• Goal Goals – Long term goals such as children’s education and their future, retirement, or any other long-term development that require a wealth creation plan.

This product is suitable for investors who are seeking*

Capital appreciation over the long term.

Invest in a focused portfolio of equities and equity related instruments of up to 25 companies
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them or not

Mutual fund investments are subject to market risks, read all the documents related to the scheme carefully.
UTM: https://bit.ly/3SGzRFu