Investors must be cautious when considering focused schemes: MF experts

The robust returns delivered by focused funds in recent months have attracted close to Rs 6,000 crore of investor flows in the current financial year. 
 

However, mutual fund (MF) experts warn investors from committing large funds, given the risk of concentrated bets in such schemes.
 

In a one-year period, focused schemes have delivered returns of 13 per cent, beating the category returns of large-cap schemes, which yielded 11.6 per cent in the same period.
 

“Investors must be cautious when considering focused schemes. These schemes can rise when some stocks in the portfolio see sharp gains. They also carry downside risks