Many mutual fund investors believe that a concentrated portfolio would help them to earn better returns. They believe many mutual fund schemes offer average returns because they have an extremely large diversified portfolio. Such investors may consider investing in focused mutual fund schemes.
According to Sebi norms, focused equity mutual fund schemes must invest in a portfolio of maximum 30 stocks. These schemes have no other restrictions when it comes to investing- like flexi cap schemes they can invest in any market capitalisations and sectors. If that investment strategy appeals to you, you can get to know more about focused equity schemes.
