New Delhi, Oct. 23 -- Focused mutual funds are equity schemes that can invest in a maximum of 30 stocks, with at least 65% of their assets in equities. They can invest across market capitalisations, including large-cap, mid-cap and small-cap stocks.

Every active mutual fund scheme has a benchmark against which investors compare its performance. Focused funds generally use the Nifty 500 TRI or BSE 500 TRI as their benchmark. TRI stands for Total Return Index, which accounts for both price changes and reinvested dividends.

This means investors are comparing a portfolio of up to 30 stocks with the returns of an index representing 500 companies.

According to AMFI data, as of October 22, 2026, SBI Focused Fund, the largest scheme in the cat...