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Are focused funds also affected by SEBI's guidelines for multicap funds?

As per SEBI's categorisation, focused funds are different from multi-cap funds and will not be affected by the new guidelines, informs Dhirendra Kumar

Are the focused funds also affected by recent SEBI guidelines on multicap funds?

- Dinesh

No, focused funds could be of any kind - they could be multi cap, large cap or small cap. The entire idea is that they are concentrated funds, are not supposed to have more than 30 holdings in their portfolio and most of them have somewhere about 20-25 stocks in their portfolio. So, they are more concentrated and therefore, they are more volatile. Since the portfolio of these funds reflects high conviction bets, sometimes when these funds fail, they will fail in a very grand way because they are concentrated. Similarly, when they succeed, understandably they will succeed big time.