UTI Focused Fund: Wealth creation with Focused investment

Picture courtesy - Freepik

The Nifty 50 Index made it to its all-time high towards the end of November and has since then retreated for higher levels due to profit booking. The Nifty 50 index clocked gains after RBI cut repo rate by 25 bps, but the rally was short-lived. Despite Q2 GDP growth at 8.2% exceeding expectations, the market scenario is facing headwinds due to weakening INR (INR depreciation) and uncertainty about the outcome of Indo US Trade talks. On the macro front, strong GDP growth on the back of consumption recovery, fiscal consolidation and low / stable inflation provides a strong base for Indian equities in the medium to long term. Despite the rally in the market, valuations across different market cap segments are below their peak valuations in 2024 (see the graphic below).

Mutual Fund - The Nifty 50 Index made it to its all-time high towards the end of November and has since then retreated for higher levels due to profit booking

Source: NSE, Data Period: 1^st September 2024 to 30^thNovember 2025

What are Focused Funds?

Focused funds are equity mutual fund schemes that invest in maximum 30 stocks (as per SEBI's mandate). There are no market cap restrictions for these funds, in other words, they can invest across market capitalization segments. Though focused funds have higher concentration risks compared to more diversified funds which invest in a larger portfolio of stocks (e.g. 50 – 60 stocks), slightly concentrated holdings allow the fund manager to allocate higher weights to high conviction stocks which have the potential of creating alphas for investors over long investment horizon. Each stock has the potential to contribute significantly to the scheme's overall performance. Adding a focused fund to your equity mutual fund portfolio may potentially increase portfolio returns. In this article, we will review UTI Focused Fund.

UTI Focused Fund Vs Category performance

The chart below shows the 3-year rolling returns of UTI Focused Fund versus its focused funds category average since the inception of the fund. You can see that the fund outperformed the category average across different market conditions in most scenarios.

Mutual Fund - You can see that the fund outperformed the category average across different market conditions in most scenarios.

Source: Advisorkhoj Research, Data Period: 25^th August 2021 to 23^rd December 2025. Past performance may or may not be sustained in future and shall not be used for comparison with other investments. The Scheme is currently managed by Mr. Vishal Chopda since May-2022. The performance mentioned here is of Regular Plan – Growth Option. For detailed portfolio/performance of the scheme visit www.utimf.com

Superior risk / return trade off

The chart below shows the rolling returns distribution of UTI Focused Fund for different investment tenures versus the category average since the inception of the fund. You can see that UTI Focused Fund has lesser percentage instances of negative returns and higher percentage instances of 12%+ CAGR returns compared to the category average. In other words, the fund provided superior risk / return trade-off compared to peer average.

Mutual Fund - The chart below shows the rolling returns distribution of UTI Focused Fund for different investment tenures versus the category average since the inception of the fund

Outperformed the broad market index

The chart below shows the 3 year rolling returns of UTI Focused Fund versus the broad market index, Nifty 50 TRI. You can see that the fund outperformed Nifty.

Mutual Fund - The chart below shows the 3 year rolling returns of UTI Focused Fund versus the broad market index, Nifty 50 TRI

Quartile Ranking

The chart below shows the quartile ranking of quarterly returns of UTI Focused fund. The fund was in the top 2 quartiles, 7 times in the last 12 quarters.

Mutual Fund - The chart below shows the quartile ranking of quarterly returns of UTI Focused fund

Source: Advisorkhoj Research as on 30^th September 2022 to 30^th September 2025. Past performance may or may not be sustained in future and shall not be used for comparison with other investments. The Scheme is currently managed by Mr. Vishal Chopda since May-2022. The performance mentioned here is of Regular Plan – Growth Option. For detailed portfolio/performance of the scheme visit www.utimf.com

Wealth creation through SIP

The chart below shows the growth of Rs 10,000 monthly SIP in the UTI Focused Fund since the inception of the fund. With a cumulative investment of Rs 5.2 lakhs you could have accumulated a corpus of Rs 6.89 lakhs (as on 23^rd December 2025) in the last 4 years or so. Remember, that we are going through one of the most volatile conditions that has hit the Indian markets in recent years. In spite of the volatility, the fund delivered a 13.08% XIRR as on 23^rd December 2025.

Mutual Fund - The chart below shows the growth of Rs 10,000 monthly SIP in the UTI Focused Fund since the inception of the fund

Market cap – Large cap biased

The charts below shows the market cap allocations of UTI Focused Fund versus the focused funds category average. You can see that UTI Focused Fund has significantly higher large cap allocations than the peer average. Midcap allocations are also higher for UTI Focused Funds. This market cap allocation seems prudent since there are concerns about valuations especially in the small cap segment.

Mutual Fund - You can see that UTI Focused Fund has significantly higher large cap allocations than the peer average