Focused funds are different from thematic funds in a way that the former allocate their holdings between a limited number of carefully researched securities while the latter invest in specific themes which may not have restrictions on the number of stocks in their portfolios.
An analysis by ETMarkets shows that the average return given by 28 active schemes over a 1-year period is lower than the average return of 67 active thematic mutual fund schemes.
Here is a sneak peek into the top five performing schemes in each category:
Focused funds
The average returns by 28 schemes over a 1-year period as on March 14 stood at 37.10%. Out of these, 24 focused fund schemes have delivered returns in excess of 30%, however only six of them have given returns higher than their benchmarks S&P BSE 500 – TRI (39.72%) and NIFTY 500 – TRI (40.04%) in the last one year.
There are two schemes in the pack viz. Mirae Asset Focused Fund-Reg(G) (20.67%) and Motilal Oswal Focused Fund-Reg(G) (27.73%) which have given lowest returns.
Thematic funds
According to Ace Equities data, there are 67 pureplay thematic mutual fund schemes. These do not account for global and MNC funds.
According to Amfi (Association of Mutual Funds in India) data published for February, there are currently 155 sectoral/thematic fund schemes which also comprise of global and MNC funds.
The average returns by these 67 schemes stood at 45.45% over a 1-year period as on March 14. In this, 19 schemes have performed better than their benchmarks.
Top five funds in this category are Aditya Birla SL PSU Equity Fund-Reg(G), SBI PSU Fund-Reg(G), Invesco India PSU Equity Fund(G), 80.57%, ICICI Pru PSU Equity Fund-Reg(G) and 360 ONE Quant Fund-Reg(G). In Quantamental Fund-Reg(G).
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