According to reports from Dalal Street Investment Journal, Motilal Oswal Focused Fund Regular Plan has emerged as the leading performer among focused mutual funds in 2026, delivering 10.36% returns as of July 24, 2026. The fund manages ₹1,635.12 crore in assets under management with a TER of 2.12%. Union Focused Fund Regular Plan follows with 7.78% returns and ₹439.85 crore AUM, while Quant Focused Fund Growth Plan rounds out the top three with 6.66% returns and ₹842.69 crore AUM.
As reported by Dalal Street Investment Journal, performance data reveals significant volatility across different market cycles. Motilal Oswal Focused Fund showed mixed performance with -1.71% in 2025, 13.62% in 2024, 18.82% in 2023, and 1.95% in 2022. Union Focused Fund demonstrated strong performance with 16.38% in 2024, 20.84% in 2023, -0.22% in 2022, and -1.95% in 2025. Quant Focused Fund maintained positive returns across most years, achieving 28.21% in 2023, 11.65% in 2024, 9.68% in 2022, and 1.89% in 2025.
According to the report, focused mutual funds are equity schemes that invest in a maximum of 30 stocks as mandated by SEBI, providing flexibility to invest across large-cap, mid-cap, and small-cap companies. These funds offer higher return potential through concentrated portfolios and high-conviction investment strategies, but come with inherently higher investment risk due to their limited stock exposure. The strategy is suitable for investors with high risk appetite, investment horizons of at least five years, and those comfortable with short-term volatility in pursuit of higher long-term returns.
As reported by Dalal Street Investment Journal, investors should evaluate multiple factors beyond recent performance when considering focused mutual funds. Key considerations include the fund manager's experience and track record, portfolio quality and sector allocation, risk-adjusted returns, expense ratio, investment philosophy, and consistency. The scheme should align with individual financial goals and risk appetite, as focused funds may not be suitable for conservative investors or first-time equity investors due to their concentrated portfolio structure.
