Focused Funds: Only 4 Beat 15% SIP Returns in 5 Years

Understanding where to put your money can feel overwhelming, especially with so many options. If you’ve been looking at focused mutual funds, it’s good to know that over the last five years, only four schemes have delivered more than 15% in SIP returns.

Leading the Pack: The Top Four Funds

The latest data, current as of August 19, 2026, shows a clear picture of which focused funds have truly stood out.

• Invesco India Focused Fund led with an impressive 18.33% five-year SIP return.
• Following closely was ICICI Prudential Focused Equity Fund, achieving 16.73%.
• HDFC Focused Fund also performed strongly, delivering 16.18%.
• And SBI Focused Fund rounded out this top tier with 15.27%.

So, what exactly are focused funds? These are equity mutual fund schemes that invest in a concentrated portfolio, holding up to 30 stocks. Unlike funds that spread investments across many companies, focused funds let managers take higher-conviction positions in fewer stocks.

This concentrated approach means the performance of individual stock holdings can have a much larger impact on the fund’s overall returns. It’s an interesting strategy, but it also highlights how performance isn’t always tied to a fund’s size or recent buzz.

Just Below the 15% Mark

While only four funds crossed the 15% threshold, several others came very close, showing strong performance.

• HSBC Focused Fund nearly made it with 14.97%.
• Kotak Focused Fund delivered 14.89%.
• And Motilal Oswal Focused Fund posted 14.82% returns.

On the other end of the spectrum, some funds saw significantly lower returns. For instance, Mirae Asset Focused Fund delivered just 7.92%, showing a wide range in performance within the category.

The difference between the highest and lowest five-year SIP returns was a substantial 10.41 percentage points, emphasizing the importance of careful fund selection.

Size Doesn’t Always Mean Top Returns

It’s natural to think that the biggest funds might be the best performers, but the data tells a different story here. The largest scheme by net assets didn’t necessarily deliver the highest returns.

• SBI Focused Fund, the largest with ₹50,041 crore in net assets, gave a 15.27% return, placing it fourth among the 15%+ group.
• HDFC Focused Fund was the second-largest at ₹27,925 crore and returned 16.18%.
• In contrast, Invesco India Focused Fund, with net assets of ₹6,065 crore, actually topped the chart at 18.33%.

This breakdown shows you that while focused funds can offer significant returns, looking beyond just fund size or general popularity is crucial. Always check the long-term performance and understand the fund’s strategy before making your investment choices.