SBI Focused Fund: Focus on select largecaps, sectors deliver higher returns

SBI Focused Fund outperforms peers and benchmark, driven by selective large-cap bets and sectoral allocation across high-return segments

The SBI Focused Fund, launched in September 2004, featured in the top 30th percentile of the focused funds category of the Crisil Mutual Fund Ranking (CMFR) for three consecutive quarters through December 2025. The fund’s assets under management (AUM) increased to ₹43,173 crore at end-December 2025 from ₹27,819 crore at end-December 2022. R Srinivasan has managed the fund since May 2009. 

The scheme aims to ensure long-term capital appreciation by investing in a concentrated portfolio of equity and equity-related securities. 

Trailing returns 

The fund outperformed the benchmark Nifty 500 TRI over the one-, two-, three-, five-, seven- and 10-year trailing periods. It also outperformed its peers — funds ranked in focused fund category of CMFR in December 2025 — over the one-, two-, three-, five-, seven- and 10-year trailing periods. 

To put this into perspective, an investment of ₹10,000 in the fund on October 8, 2004, which was the inception date of the fund, would have increased to ₹3,58,764 on April 9, 2026, at an annualised rate of 18.10 per cent. On the other hand, the same investment in the category and the benchmark would have grown to ₹2,57,811 (16.30 per cent) and ₹1,85,317 (14.53 per cent), respectively. 

A systematic investment plan (SIP) is a disciplined way of investing in mutual funds, wherein a specific amount is invested at regular intervals. 

A monthly SIP of ₹10,000 in the fund over 10 years, totalling ₹12 lakh, would have grown to ₹24.79 lakh (annualised return of 14.04 per cent). In comparison, the same investment in the benchmark would have risen to ₹23.95 lakh (13.39 per cent), as on April 9, 2026. Overall, the fund has outperformed the benchmark over the one, three-, five-, seven- and 10-year SIP periods. 

Portfolio analysis 

The fund’s exposure to large-cap stocks has been high in the last three years. 

The allocation to large-cap stocks averaged 49.86 per cent, while for mid- and small-cap stocks averaged 28.86 per cent and 4.77 per cent, respectively. In comparison, the category’s investments in large-cap stocks stood at 65.08 per cent on average, followed by 17.73 per cent in mid-caps and 11.40 per cent in small-caps. The fund’s allocation to mid-cap stocks surpassed its peers. 

The portfolio was diversified across 16 sectors. The highest average allocation was to financial services at 35.40 per cent, followed by telecommunication (7.12 per cent), fast-moving consumer goods (7.08 per cent), automobile and auto components (5.78 per cent) and consumer services (5.30 per cent). 

The fund’s overweight positions, compared with its category, in certain large-cap stocks and high-return sectors such as automobile and auto components (31.54 per cent), power (30.70 per cent) and commodities (23.61 per cent), helped it outperform in the last three years. 

During the period under review, the fund took exposure to 42 stocks and held eight consistently. Muthoot Finance, Solar Industries India, Bharti Airtel and State Bank of India were the key contributing stocks to the portfolio.