SBI Focused Equity Fund Direct Growth & Regular Plan by SBI Mutual Fund
In Mutual fund, Investors are always looking for good investment options and best mutual fund schemes for better returns. If you also want to invest in a mutual fund (MF) for the good return than you must check out SBI Focused Equity Fund.
Focused Mutual Fund: Highlights:
- Focused mutual fund invests in a limited number of shares.
- In a focused equity fund scheme, the risk is also higher.
- If you can’t take risks, you should stay away from Focused Mutual Fund Scheme.
In India, Interest rates on fixed deposits (FDs) or other small savings schemes include Kisan Vikas Patra, National Savings Certificates (NSC) have been steadily declining.
In these situations, people are looking for investment options for better returns. If you also want to invest in Mutual Funds (MFs) schemes, here, you will get complete information about SBI Focused Mutual Funds.
In India, Focused mutual fund is a popular mutual fund scheme that invests in a limited number of shares. Focused mutual funds are funds focused on small-cap, large-cap, mid-cap, or multi-cap stocks.
Definition of Focused Fund
According to SEBI guidelines, a Focused Mutual Fund can invest up to 65 per cent of its corpus in shares At the same time, the focused mutual fund can invest in a maximum of 30 stocks.
If any investor wants to invest in a mutual fund scheme, he and she can invest in SBI Mutual Fund’s SBI focused equity fund direct growth or SBI focused equity fund regular growth scheme.
SBI Mutual Fund is a joint venture (JV) between State Bank of India, Indian Public Sector Bank and one of the largest and most profitable banks in India and Amundi, a European asset management company.
Risk in a focused fund
If you are a new investor and do not know much about investing in Mutual Funds (MF) then you should stay away from Focused Mutual Fund Scheme.
You should only invest in a focused mutual fund if you can take a risk and leave your investment for a long period of time.
If you want to increase your capital without risk, you should go to a diversified equity fund. Here your investment portfolio grows and the risk decreases.
What is SBI focused equity fund?
In the current market conditions, investors need a special kind of portfolio. Focused equity portfolio can be effective. Such schemes select stocks based on the profitability of the companies. One such mutual fund scheme is SBI Focused Equity Fund.
This is one of the few old focused equity schemes in the market. The portfolio of the scheme is quite diversified.
This fund has shares of 25 companies in its portfolio. This kind of portfolio gives good results in the long run.
It covers sectors like automobile, financial, engineering, consumer durable, and technology. About 57 per cent of the scheme’s portfolio has been invested in shares of large companies. While the rest of the money is invested in small sized and medium zised companies.
Is SBI focused equity fund good?
The performance of the scheme in the long run is its hallmark. In the last 10 years, SBI Focused Equity Fund scheme has given investors a return of 24.7 while in seven years it has been 16.8 per cent. Mr. R Srinivasan is managing this fund since May 2009.
On the other hand, the return of other schemes in the same category has been 17.6 per cent in 10 years and 14 per cent in seven years. While its benchmark index Nifty 500 TRI gave 13.2 per cent and 16.4 per cent returns during this period respectively.
SBI Focused Equity Fund aims to provide opportunities of long-term capital appreciation by investing in a concentrated portfolio of equity and equity related instruments.
The scheme has the flexibility to invest up to 35% in money market or/and debt instruments. The fund invests minimum of 65% in equity and equity related instruments spanning across market capitalization.
The fund follows a bottom-up approach to stock-picking and invests in companies across market capitalization and sectors.
The fund invest across market capitalization – small cap, mid cap, and large cap companies when it detects a potential.
The schemes’ portfolio focuses only on 30 high conviction stocks, so that it can pay all its attention on these companies and their future potential.
About SBI Focused Equity Fund Direct Plan-Growth
It is a Equity mutual fund scheme from SBI Mutual Fund. SBI Focused Equity Fund Direct Plan-Growth was launched on 01 Jan 2013It has an AUM of ₹14,766.83 Crores. Currently R. Srinivasan is the fund manager of this scheme.
SBI Focused Equity Fund Direct Plan-Growth scheme return performance
- 248.57% since scheme launch
- 10 years is 24.7
- 7 years is 16.8
- 3 years is 50.15%
- 1 year is 60.86%,
The minimum SIP amount to invest in SBI focused equity fund direct growth or SBI focused equity fund regular growth plan is ₹500.
- Launch Date: 01 Jan 2013
- Category: Equity: Multi Cap
- AUM: ₹14,766.83 Cr
- Fund Type: Open-End
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