MOSt focused 25 fund -G only for risk takers ?

MOSt focused 25 fund-G has attracted  lot of investors attention due to its distinctly different strategy when compared to its peers. The fund with unique concentration strategy boasts of excellent performance over 2 years period and 3 years period. With expense ratio of 2.67, slightly on higher side compared to peers, and assets under management of Rs 413.57 crore, the fund has disappointed in its performance over 1 year period where the fund has been unable to outperform the index. 

The investing style for the fund is unique and the conviction of the strategy lies in concentration rather than diversification, which is the key to Mutual fund investing. Investors will experience in mutual fund investing in India, that on an average any equity diversified fund will be holding more than 50 stocks from different diversified sectors. MOSt focused 25 Fund- G invests only in 25 stocks, thus concentrating only on 25 growth opportunities. 

For those investors convinced on concentration benefits and investing in only those companies which showcase higher growth and consistency, but are willing to take higher risk in terms of volatility need no look further than MOSt focused 25 Fund- G. 

The fund displays an Alpha of 6.1 per cent and a Sharpe ratio of 0.37. Alpha , a positive one explains excess returns over the benchmark index; whereas positive Sharpe ratio explains higher risk adjusted returns of the fund.

The annualised 2 years returns for the fund has been 11.65 per cent and for 3 years period the fund's annualised returns have been impressive at 18.66 per cent. In terms on sectoral allocation, the fund that has been in operation since May 2013, has betted on Financials (35.5 per cent) , Automobiles (19.3 per cent), IT (13.2 per cent)  and Industrials/Engineering (10 per cent). 

The top pick for the fund has been Maruti Suzuki (8.8 per cent), HDFC Bank (8.6 per cent), Kotak Mahindra Bank (7.8 per cent) , Interglobe Aviation (7.6 per cent), and Britannia Industries (6.6 per cent).

Investors with higher risk appetite may look at the MOSt focused 25 Fund-G fund with a long term perspective only after taking into consideration the added element of concentration risk.