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Summary: When a focused fund makes a portfolio move, it’s worth noticing. Unlike diversified funds that can own dozens of stocks, a focused fund can hold only up to 30. That means every buy or sell counts. With that in mind, let’s see which stocks HDFC Focused Fund — a fund that has been drawing strong investor interest in recent years — added to its portfolio last month.
When a focused fund changes its portfolio, investors should pay attention. Why? Because, unlike diversified funds that can own as many stocks, a focused fund is allowed to hold a maximum of 30. Which means every buy or sell carries weight.
There are currently 27 focused funds in India, and the HDFC Focused Fund is the second-largest in terms of assets under management (AuM). This fund has been growing rapidly in recent years, with its AuM growing nearly sevenfold since 2022.
In August alone, HDFC Focused was among just five diversified equity funds to attract over Rs 1,000 crore in net inflows. That kind of investor interest isn’t random; it’s backed by performance.
In fact, HDFC Focused has quietly become one of the top-performing funds in its category.
- Five-year returns: 29.7 per cent (vs BSE 500 TRI’s 20.5 per cent)
- Three-year returns: 23.4 per cent (vs benchmark’s 15.3 per cent)
Such performance has helped it climb rapidly in our ratings as well – from one star in 2021 to a flawless five stars today.
Given its solid performance and high investor interest, let’s look at the fund’s recent activity.
Three stocks the fund bought more of in August
Holding increased by 0.28 per cent, taking the total stake to 2.29 per cent. Interestingly, the fund has been increasing its stake in this company in the last few months.
- About the company: Chalet Hotels, incorporated in 1986, owns and operates seven hotels in India (including JW Marriott, Westin, Four Points by Sheraton, Courtyard by Marriott), while also engaging in commercial real estate, rentals and residential property development.
- Value Research Rating: 3 stars
- Revenue growth in the last three years: 48.1 per cent
- P/E ratio: 80.7
- ROE: 5.9 per cent
- ROCE: 11.4 per cent
The fund bought a little more of this stock, taking its ownership from 1.88 per cent of the company to 2.03 per cent. This means Piramal Pharma now makes up 2.21 per cent of the fund’s portfolio.
- About the company: Piramal Pharma, founded in 2020 and based in Mumbai, is a global pharmaceutical company with businesses spanning drug development and manufacturing, complex hospital generics and consumer healthcare.
- Value Research Rating: 1 star
- Revenue growth in the last three years: 10.7 per cent
- P/E ratio: 80.7
- ROE: 1.1 per cent
- ROCE: 6.6 per cent
The fund also added slightly more Havells shares, raising its holding from 0.29 per cent to 0.4 per cent of the company. Havells now accounts for 1.7 per cent of the fund’s total portfolio.
- About the company: Havells India is a leading fast-moving electrical goods company with a presence in India and abroad. It operates across six segments, offering a wide range of products from switchgears, cables, consumer durables, appliances, motors, pumps and solar solutions under multiple well-known brands.
- Value Research Rating: 3 stars
- Revenue growth in the last three years: 11.2 per cent
- P/E ratio: 80.7
- ROE: 18.7 per cent
- ROCE: 26.2 per cent
The only stock where the fund reduced its stake was Bosch, which now makes up 1.78 per cent of its portfolio.
- About the company: Bosch Limited manufactures and trades automotive products while also offering solutions across mobility, industrial technology, consumer goods, and energy and building technology. It serves both domestic and international clients.
- Value Research Rating: 4 stars
- Revenue growth in the last three years: 12.9 per cent
- P/E ratio: 80.7
- ROE: 15.6 per cent
- ROCE: 21.3 per cent
Heavy on banks
As of August 2025, the fund’s top four holdings are all banks, a clear sign of the manager’s confidence in the sector.
- ICICI Bank: 9.03 per cent
- HDFC Bank: 9.23 per cent
- Axis Bank: 6.8 per cent
- SBI: 4.83 per cent
Is the HDFC Focused Fund a part of our ‘Best Buy’ list?
Given its strong track record, focused approach and rising inflows, HDFC Focused Fund certainly deserves a closer look.
And if you’re wondering whether this fund makes it to Value Research’s ‘Best Buy’ list, check out Value Research Fund Advisor, our premium service that helps you cut through the noise and pick only the best mutual funds for your goals.
Also read: Quant Small Cap Fund bet big on 2 pharma stocks last month
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