Focused Funds: high-conviction, fewer stocks

Focused funds may hold a maximum of 30 stocks. The idea: back only the manager's best ideas instead of diluting across 50–70 names.

• Upside: concentration can amplify returns if the picks work.
• Risk: a few wrong calls hurt more — outcomes swing on stock selection.
• Manager skill is everything here.

Suited to investors who trust a specific manager's process and can handle bumpier returns. Equity taxation applies.

→ Find focused funds.