Investing a lump sum amount in mutual funds can be a highly rewarding strategy, especially if chosen wisely. For investors looking to grow their wealth significantly over time, focused equity funds have been a compelling option in India. These funds concentrate investments in a smaller basket of high-conviction stocks, offering the potential for superior returns.
Let’s explore how an investment of ₹2 lakh made in 2020 would have grown by September 2025 across some of the best performing mutual funds in India.
Here’s a snapshot of five top focused equity mutual funds, showcasing their current value and annualised returns as of September 2025:
| Scheme Name | AUM (Crore) | TER (%) | Current Value | Annualised Return (%) |
| HDFC Focused Fund GR | 21,456.24 | 1.64 | ₹6,73,071 | 27.45 |
| ICICI Pru Focused Equity Gr | 12,380.36 | 1.71 | ₹5,95,715 | 24.38 |
| Franklin India Focused Equity Gr | 12,421.39 | 1.76 | ₹5,85,133 | 23.93 |
| Nippon India Focused Fund Gr Plan Gr | 8,598.83 | 1.84 | ₹5,44,172 | 22.15 |
| Tata Focused FundReg PlanGr | 1,824.73 | 2.04 | ₹5,06,840 | 20.43 |
Source: Advisorkhoj
Starting with ₹2 lakh in 2020, the HDFC Focused Fund has delivered an impressive ₹6.73 lakh returns by 2025, reflecting an annualized return of 27.45%. Similarly, ICICI Prudential and Franklin India Focused Equity funds have grown the investment to nearly ₹6 lakh, yielding returns above 23% annually.
Focused equity funds invest in a concentrated portfolio of stocks, typically between 15 to 30 companies. This approach allows fund managers to back their best ideas with conviction, leading to potentially higher returns than diversified funds. While the risk can be higher due to less diversification, disciplined investors with a long-term horizon have historically been rewarded.
Read more: Top Mutual Funds for September 2025 That Delivered Highest Returns in the Last 10 Years.
For lump sum investors aiming for substantial wealth creation, these focused funds represent some of the best options in September 2025. With consistent performance and strong management, funds like HDFC Focused Fund and ICICI Prudential Focused Equity provide a compelling mix of growth and disciplined risk. If you’re investing ₹2 lakh or more, these funds deserve a close look in your portfolio strategy.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Mutual Fund investments are subject to market risks. Read all scheme-related documents carefully.
Published on: Aug 21, 2025, 4:36 PM IST
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