5 greatest targeted mutual funds that outperformed the benchmark index over the last ten years

 5 greatest targeted mutual funds that outperformed the benchmark index over the last ten years

In the last ten years, these five mutual fund schemes were able to outperform the benchmark index.

Retail investors must, and should, carefully consider the advantages and disadvantages of a mutual fund plan before making an investment.

These factors include, among others, the industry the plan is in, the macroeconomic environment, the asset management company's (AMC) reputation, and — most crucially — the historical performance of the fund in comparison to other schemes in the same category.

It is advised to assess a mutual fund's performance based on its capacity to consistently outperform the benchmark index year after year.

Here, we concentrate on a few schemes that fall under the umbrella of specialized mutual funds and outperformed their benchmark index, which serves as the scheme's performance standard.

What do concentrated mutual funds do?

Focused mutual funds are investment vehicles that invest in a small number of assets that are somehow connected to one another. These funds often own fewer equities than other funds, which offer exposure to a wider range of industries and businesses.

According to the table above, Quant Focused Fund (19.03%) and Nippon India Focused Equity Fund had the best 10-year returns, outperforming the benchmark index fund by a significant margin.

The annualized returns of other top-performing targeted mutual funds fell between 17 and 20 percent.

Here is a brief overview of these top-performing schemes:

Quant Focused Fund: Since its July 3, 2008, debut, it has produced an annualized return of 13.33 percent. It is a tiny fund with a 367 crore total AUM.

Jio Financial Services, Treps, RIL, DLF, and Bikaji Foods International are some of the major component stocks.

Nippon India Focused Equity Fund: Since its introduction on December 26, 2006, it has generated an annualized return of 14.21%. having a total AUM of $6,976 billion, it is a sizable fund having HDFC Bank, Axis Bank, Infosys, ICICI Bank, and ITC among its major component firms.

The SBI Focused Equity Fund was introduced on October 11, 2004, and since its debut, it has generated an annualized return of 18.64 percent.

having an AUM of $29,473 crore, it is a sizable fund having HDFC Bank, Alphabet Inc., ICICI Bank, Muthoot Finance, and Treps among its main component firms.

The Nippon India Focused Equity Fund was established on December 26, 2006, and since its debut, it has generated an annualized return of 14.21%.

Its primary member equities are HDFC Bank, Axis Bank, Infosys, ICICI Bank, and ITC, and it has an AUM of $6,976 crore.

Since its debut on July 26, 2007, the Franklin India Focused Equity Fund has generated an annualized return of 13.70 percent. Its primary component equities are those of ICICI Bank, HDFC Bank, L&T, Axis Bank, and Infosys, and it has an AUM of $9,359 crore.