Before investing in a mutual fund, it’s important to examine its past performance and compare it with other schemes in the same category. Past returns can give an indication of how the scheme has performed in the past, setting the tone for its future performance.
In this article, we will examine the past returns of focused mutual funds, which are mandated to invest in a limited number of stocks (maximum 30) with at least 65% in equity and equity-related instruments. As of March 31, there are 28 schemes in this category with a total asset size of 1.44 lakh crore, and March alone saw an inflow of 1,386 crore into these schemes.
There are half a dozen focused mutual funds that have delivered over 25% return in the past five years. It’s important to note that past returns do not guarantee future returns. Just because a scheme has given a good performance in the past, it doesn’t mean it will continue to give the same performance in the future.
As we can see in the table above, HDFC Focused 30 Fund delivered 30.81% return, and ICICI Prudential Focused Equity Fund gave a return of 28.37% in the past five years. Other focused schemes that gave a return higher than 25% include 360 One focussed equity fund.
Wealth advisors often recommend investors to factor in other criteria as well, such as the past performance of fund managers, the category of the scheme, exposure to equity, and the overall performance of the economy.
This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment-related decision. For all personal finance updates, visit [here].
Reference : https://www.livemint.com/money/personal-finance/best-mutual-funds-these-focused-funds-delivered-over-25-percent-annualised-return-in-the-past-5-years-see-list-here-11745830408478.html
