6 focused mutual funds beat the benchmark index in the past 5 years (2024)

Here, we list out the top performing focused mutual funds which managed to beat the benchmark index in the past five years. The benchmark index for a mutual fund scheme is the index against which the fund intends to evaluate its performance.

First of all, let us understand what exactly are focused mutual funds:

Focused mutual funds

These refer to mutual funds which focus on the number of stocks (maximum 30) with at least 65 percent of allocation of assets in equity & equity related instruments.

There are a total of 27 focused mutual fund schemes with total assets under management (AUM) of ₹1.24 lakh crore, as on Dec 31, 2023, shows the AMFI (Association of Mutual Fund in India) data.

As a category, focused mutual funds delivered 16.27 percent annualised returns in the past five years, shows MorningStar data.

Schemes that outpaced the benchmark index

(Source: AMFI, data as on Jan 23, 2024)

As we can see in the table above, 360 ONE Focused Equity Fund delivered 22.21 annualised return while the benchmark return stood at 17.61 percent.

At the same time, Franklin India Focused Equity Fund delivered the lowest return of 18.03 percent per annum while the benchmark return stood at 17.45 percent. The other four focused mutual funds gave an annualised return in the range of 18-19 percent.

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Published: 25 Jan 2024, 11:03 AM IST