The Focused 25 Fund is known as the equity type of mutual fund which mandates the selection of companies from the list of 200 top ones on the basis of market capitalization. The fund mainly aims at investing in the stocks with higher convictions and having a clean and transparent balance sheet. The Focused 25 Fund prefers investments in those stocks which show sustainable cash flows, profit growth and also has incredible management.
The main focus of the fund is to aim at investing in the stocks having sustainable growth ratio. At a particular time, the fund can invest in not more than 25 such high-performing stocks. During the year 2017, it has been seen that the fund had invested ~30% of its corpus in the mid-cap stocks and about ~57% of the corpus in the large-cap stocks. The stats also show the fact that the fund has enhanced its holdings in various auto ancillary, private banks and NBFC in the last financial year.
The Outstanding Performance of the Fund for the Last Five Years:
The Axis Focused 25 Fund is one of the most popular equity funds known in the market today. The topmost benchmark for the fund is the category return and the Nifty 50. It has outperformed consistently in comparison with its benchmarks during the time of previous five years. In the first year, the Axis Focused 25 Fund offered a return of 25.9 while Nifty 50 offered 18.5 and category return recorded 19.0. In the third year as well the equity fund outperformed the other two funds by a higher percentage. The fifth-year has also been consistent for the focused 25 fund showing 18.1 return while Nifty 50 and category return recorded 12.3 and 15.8 respectively.
The Working of the Fund:
This equity fund got launched in the year 2012 on June 11. The launch price was Rs.10 and today the latest NAV of the mutual fund stands at Rs.27.40. the minimum investment in the fund initially has to be Rs.5000 and then the subsequent minimum investment of Rs.100 has to be done by the investor. The redemption amount stands to Rs.1000 which is the minimum limit. There is no entry load in the fund. There is some exit load which applies if the investor switches out or redeems within a period of twelve months from the time of allotment of the fund.
Other Features of the Fund:
- Both growth and dividend options are available in the focused mutual funds.
- As the name suggests, it is a multi-cap fund.
- Taxability sections of 112(1), 194K and 155(R) are applicable in case of these funds.
- Best suited for those aggressive investors who are looking for exposure in the mid-cap and high-cap growth stock high conviction market.
- The fund mainly aims at creating wealth for the investors in the long-term.
Just as any other mutual fund, this Axis fund is also subject to certain market risks and adversities. Consult financial advisors before planning for any investment in the funds.