SBI Focused Fund: On a strong performance upturn

Current Market Scenario

The Nifty 50 has rebounded almost 2,000 points from its 52-week low after ceasefire was agreed between United States and Iran. Several countries are making diplomatic attempts to get the Strait of Hormuz opened. Brent crude oil prices have topped $110 per barrel. US Iran talks have stalled and there is uncertainty in the market. Even though global markets may bounce back if lasting ceasefire can be agreed, prolonged disruption to global energy flows can have impact on global economic growth and inflation expectations, making it difficult for central banks to cut interest rates. In the current environment of uncertainty, stock specific strategy may be beneficial for long term investors.

What are Focused Funds?

Focused funds are equity mutual fund schemes that invest in maximum 30 stocks (as per SEBI's mandate) focusing on either the multicap, large cap, mid cap or small cap space. 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 their high-conviction ideas - opportunities they believe have strong long-term growth potential. True focus is required in every aspect: precision in choice, patience in holding and an unshakeable conviction at every step. In this article, we will review SBI Focused Fund which is on a strong performance trajectory for last several months.

On a strong performance trajectory

The graphic below shows the quartile rankings of SBI Focused Fund over the last 12 quarters. SBI Focused Fund has been in the top quartiles 4 times out of last 5 quarters, including 3 consecutive quarters in the top quartile (see the graphic below).

Source: Advisorkhoj Research, as on 31^st March 2026

Consistency in performance over years

The graphic below shows the quartile rankings of SBI Focused Fund over the last 1 years. SBI Focused Fund has been in the top quartiles 6 times in the last 10 years (including 4 times in top quartile).

Source: Advisorkhoj Research, as on 31^st March 2026

Consistently outperformed category average across market conditions

The chart below shows the 5 year rolling returns of SBI Focused Fund versus the category average since the inception of the scheme. You can see that the fund consistently outperformed the category average.

Source: Advisorkhoj Research, as on 31^st March 2026

Lower volatility compared to peers

Standard deviation is a measure of volatility. We looked at the standard deviations of all focused funds which have minimum 3 year track records - SBI Focused Fund has the lowest volatility.

Source: Advisorkhoj Research, as on 31^st March 2026

Superior risk adjusted compared to peers

Sharpe ratio is a measure of risk adjusted returns. We looked at the Sharpe Ratios of all focused funds which have minimum 3 year track records. SBI Focused Fund has higher Sharpe Ratios than most peers.

Source: Advisorkhoj Research, as on 31^st March 2026

Wealth creation track record

The chart below shows the growth of Rs 10,000 SIP in SBI Focused Fund since the inception of the scheme. You can see that with a cumulative investment of Rs 25.8 lakhs, you could have accumulated a corpus of Rs 1.67 crores.

Source: Advisorkhoj Research, as on 31^st March 2026

Current portfolio positioning

Source: SBI MF, as on 31^st March 2026

Higher allocations to midcap

Source: SBI MF, as on 31^st March 2026

Who can find SBI Focused Fund suitable?

• Investors looking to invest in focused equity portfolio as a part of their overall investment portfolio.


• Investors having a very high risk appetite, given the concentrated nature of the portfolio.


• Investors with a long-term investment horizon of 5 years or above.


• Investors seeking potential higher returns with the ability to withstand higher volatility.

Consult with your financial advisors or mutual fund distributors if SBI Focused Fund is suitable for your investment needs.