7 Best Equity Mutual Funds From Focus, Value, & Contra Categories You Should Check In 2023

ICICI Direct has picked 7 Mutual Funds from the Focus, Value, & Contra Categories. The brokerage in its Mutual Fund Review report published on 23 December 2022, has picked these 7 Equity Oriented Mutual funds.

According to the brokerage, After witnessing a sharp recovery in October and November 2022, markets turned volatile in December with mild profit booking visible near all-time high levels.

Furthermore, Value/Contra funds made a comeback in 2022 particularly post last year's highs in October 2021. The category average return for last one-year was at around 23%.

The variation in returns of funds within focused category remain significantly high with one-year return of worst fund at -10% while best fund delivered return of 26%. In general, this category is extremely volatile and only aggressive investors should take exposure to this category.

Focus Funds & their Annualized SIP Returns

Focused Funds	1-Yr Return	2-Yr Return	3-yr Return
IIFL Focused Equity Fund	9.55%	10.57%	20.03%
SBI Focused Equity Fund	0.97%	5.83%	15.25%
Tata Focused Equity Fund	11.77%	12.34%	20.88%

Focused funds are equity mutual funds that only hold a small number of stocks or bonds that are comparable in some way. A focused mutual fund, by definition, does not hold a broad or diversified mix of positions but rather concentrates on a small number of stocks in a small number of sectors.

Value Funds & their Annualized SIP Returns

Value Funds	1-Yr Return	2-Yr Return	3-yr Return
IDFC Sterling Value Fund	10.95%	17.07%	31.23%
Nippon India Value Fund	9.78%	12.33%	22.45%
UTI Value Opportunities Fund	10.95%	10.78%	19.45%

Value Funds are equity-oriented mutual funds that adhere to the value investment philosophy and invest at least 65% of their assets in equity and equity-related instruments. They also have the flexibility to invest across market capitalizations and sectors.

 

Contra Fund & its Annualised SIP Returns

Contra Fund	1-Yr Return	2-Yr Return	3-yr Return
SBI Contra Fund	19.27%	21.49%	33.77%

The investing approach of a contra fund sets it apart from other funds. Investments in contra funds are made in the stock of unpopular and currently unfavorable to investors. Investments made by a contra fund go against the direction of the market and are made in underperforming stocks.

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.