Sbi Focused Equity Fund

Review Date: 25-03-2025

Beginning of Analysis

In the Focused Fund category, Sbi Focused Equity Fund is the 9th ranked fund. The category has total 23 funds. The 4 star rating shows a very good past performance of the Sbi Focused Equity Fund in Focused Fund category. The fund has a Jensen Alpha of 1.0% which is lower than the category average of 1.2%, showing poor performance. The fund has a Sharpe Ratio of 0.28 which is lower than the category average of 0.42.
The past performance of the Sbi Focused Equity Fund may or may not be sustained in the future. The review is not investment advice nor is it a recommendation to buy or sell funds.
Focused Mutual Funds are ideal for aggressive investors seeking high returns by investing in a concentrated portfolio of high-conviction stocks. These funds typically hold 20–30 stocks, allowing the fund manager to take significant positions in select companies. While they offer the potential for significant capital appreciation, they also carry higher risks due to their concentrated nature. Investors should have a long-term investment horizon and a high risk tolerance to invest in Focused Funds. Additionally, the success of these funds depends heavily on the fund manager's skill in identifying and managing high-conviction stocks.

Sbi Focused Equity Fund Return Analysis

The fund has given a return of 4.29%, -0.77 and -4.84 in last one, three and six months respectively. In the same period the category average return was 4.28%, -5.45% and -11.54% respectively. The fund has given a return of 13.16% in last one year, 13.73% in last three years, 25.46% in last five years and 14.95% in last ten years. In the same period the category average return was 10.44%, 15.98%, 27.99% and 13.86% respectively. The fund has Very Good performance in last ten years in Focused Fund.

The fund has given a SIP return of 5.39% in last one year. In the same period the category average SIP return was -2.72%. The fund has SIP return of 16.67% in last three years whereas category average SIP return is 16.62%. The category average SIP return is 18.11% and the fund has given a SIP return of 17.47% in last five years.

The benchmark Nifty 500 Total Return Index has given a return of 8.25%, 14.66% and 28.77% in last one, three and five years respectively.

Sbi Focused Equity Fund Risk Analysis

The fund has a standard deviation of 11.75 and semi deviation of 8.23. The category average standard deviation is 14.21 and semi deviation is 10.1. The fund has a Value at Risk (VaR) of -14.56 and a maximum drawdown of -11.38. The category average VaR is -18.41 and the maximum drawdown is -16.71. The fund has a beta of 0.72 which shows that fund is less volatile than the benchmark.

Standard deviation measures the fund's return volatility and Semi deviation focuses on downside volatility. Value at Risk (VaR) is a measure of the risk of investments. Maximum Drawdown is the maximum loss from a peak to a trough of a portfolio. Beta measures the volatility of the fund compared to the benchmark. A beta of 1 indicates that the fund will move in line with the benchmark. A beta of more than 1 indicates that the fund will be more volatile than the benchmark and vice versa.