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Mutual Fund Agent Near Me on Focused Mutual Funds


Mutual Fund Agent Near Me on Focused Mutual Funds

If you have been looking for “mutual fund agent near me” on Google to get your hands on focused funds, here is a primer for you to check out first!

What Are Focused Mutual Funds?

Focused mutual funds are those that stay invested in a limited number or a “focused” number of stocks. According to SEBI guidelines, a focused fund is an open-ended scheme that can stay invested in around a maximum of 30 stocks. The minimum investment in equity or equity-related assets is 65% of the total assets. Fund houses should mention where the scheme intends to focus.  

The Rationale Behind Focused Mutual Funds

Other mutual funds can invest in around 100 stocks or so, however, focused mutual funds invest in only 30. The rationale of these funds is to focus wholly on a particular sector. For example, it can focus only on large cap, mid cap or small cap funds. Assets are not spread across the equity classes but are focused on a small number of core stocks. Sometimes these funds are also called “best idea funds”.

Why You Should Invest in Focused Mutual Funds?

Before you invest in focused mutual funds from any “mutual fund agent near me”, you can learn about the pros of investing in focused mutual funds.

  • Frequent and Continuous Research

Fund house managers perform a lot of frequent and continuous research to select the best funds as they can choose only 30 stocks. There is a stringent and strict method of stock selection, so you can be assured that you are getting nothing but the best selection of stocks.

  • Higher Returns

Since mutual funds are diversified they tend to reduce the returns. The reason people invest in mutual funds is because of diversification, however, that is the very same reason that you can get lesser returns. Investing in focused funds can give you considerably higher returns.

Why You Should Avoid Investing in Focused Mutual Funds?

There are cons to investing in focused mutual funds as well. So, before you hurry to any mutual fund agent near me check out what these cons could be.

  • Better for Experienced Investors

These funds are better for experienced investors rather than first-time investors as experienced investors will know how to choose the right focussed fund.

  • Higher Risk

Obviously, since these funds are focused on only 30 stocks they come with a higher risk.

  • Highly Volatile

Moreover, since it can be a hit or miss, these funds are highly volatile as well.

Conclusion

So get in touch with Money Assist, “mutual fund agent near me”, to help you invest in the best focused funds.