Focused funds have 30-stock limit, but these active equity mutual funds also follow concentrated approach: Here's list

Focused funds are a category of equity mutual funds that do not follow any market-cap-based allocation rule. Instead, they are required to invest in up to 30 stocks, with at least 65% of their assets allocated to equity and equity-related instruments.

Other active equity fund categories, such as large-cap, mid-cap and small-cap funds, have specific market-cap allocation requirements, but there is no restriction on the number of stocks they can hold.

These funds generally invest in a larger number of stocks, often exceeding 100 or 200, to diversify their portfolios and spread risk across companies. However, some active equity funds choose to keep their portfolios concentrated despite not being classified as focused funds.

According to a post by Value Research on X, “Some active equity funds choose to keep their portfolios surprisingly concentrated, even without a focused-fund mandate.”

For instance, Quant Large Cap Fund holds just 15 stocks, with its top 10 holdings accounting for 79.2% of its portfolio. This means a substantial portion of the fund's assets is invested in a relatively small number of companies. Here are 10 active equity mutual funds with 30 or fewer stocks in their portfolios.

Source: Value Research; Data as of 30 September 2026; Excludes sectoral/thematic, focused and international equity schemes.

These funds follow different investment mandates, but none of these categories prescribes a maximum number of stocks that a scheme can hold.

Quant Large Cap Fund, which currently holds 15 stocks, must invest at least 80% of its assets in large-cap companies. Quant Mid Cap Fund, with 24 stocks, must allocate at least 65% of its holdings to mid-cap companies. Similarly, the Quant Large and Mid Cap Fund, which holds 24 stocks, must maintain a minimum allocation of 35% to each of large-cap and mid-cap stocks.

Samco Flexi Cap Fund and Capitalmind Flexi Cap Fund, with 24 and 30 stocks, respectively, can invest across market capitalisations, but there is no prescribed stock-count limit.

A concentrated portfolio means a fund manager allocates a relatively larger share of the fund's money to fewer companies rather than spreading investments across a wider range of stocks.

This can work in investors' favour when the fund manager's stock selections perform well. However, it can also magnify losses if some major holdings underperform.

For instance, when a fund's top 10 holdings account for nearly 80% of its portfolio, the performance of these companies can have a significant bearing on the fund's overall returns.

Investors should therefore not assume that a fund offers broad diversification simply because it belongs to a large-cap, mid-cap or flexi-cap category. Before investing, you should examine the number of stocks held, the weight of the top holdings, sector concentration and how frequently the portfolio changes.

Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance. <br><br> She holds a degree in Economics (Hons.) along with an MBA in Finance, which has helped her develop a strong foundation in financial analysis, market understanding, and business reporting. Before joining journalism, she worked with finance and broking firms, where she closely followed market developments, investment strategies, and evolving industry trends. This practical exposure strengthened her understanding of financial markets. She has also written content across multiple formats and platforms, including YouTube, LinkedIn, and Instagram. <br><br> Over time, she has developed expertise in covering market-linked stories, investor-focused topics, and regulatory updates in a simplified yet informative style. She also enjoys reading and listening to Hindi poetry, reflecting her appreciation for literature and creative expression beyond the world of markets and numbers.

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HomeMoneyPersonal FinanceFocused funds have 30-stock limit, but these active equity mutual funds also follow concentrated approach: Here's list

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