Launch of Invesco India Focused 20 Equity Fund

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Launch of Invesco India Focused 20 Equity Fund: Picking Winning Gems in Volatile Market

In our continuous endeavour to update our valued investor about the New Investment Ideas / Theme, we would like to share that, Invesco India Focused 20 Fund, An open ended Scheme investing in Maximum 20 Stocks across Market Capitalization (i.e., Multicap).  The New Fund Offer will open on Sep 9, 2020 and will close for subscription on Sep 23, 2020.

Why should one invest in the Focused Fund now?

  •        Focused Fund as a strategy is worthy of consideration in all time periods given its inherent nature of targeting high conviction ideas as these funds typically invest in few stocks in a concentrated manner
  •          The unprecedented challenges and high stock market volatility we face now call for a greater focus on stock selection
  •     With current economic disruption & uncertainty looming high over equity markets, we feel extraordinary vigil & meticulous approach is need of the hour to build a sound portfolio

Few stocks have contributed to the majority of returns in the past

Invesco

While diversification is good, adding a large number of stocks in the portfolio does not always reduce risk

Invesco

Salient Features: Invesco India Focused 20 Equity Fund

  •     Striking a balance between conviction and diversification: With a high level of conviction in every stock position, the fund portfolio will not exceed 20 stocks. The Fund will have a sizeable allocation to each stock idea, yet maintain an equilibrium between conviction and diversification.
  •     Multicap Portfolio: The Fund will invest across Market Capitalization, currently a large part of the portfolio will be dedicated to Large Cap Stocks (~50% – 70%). The Midcaps can comprise approximately 30% – 50% of the portfolio, while Small Cap stocks will constitute around 0% – 20% of the portfolio.
  •      Blend of growth and value stocks:  The portfolio will comprise of both growth and value stocks, i.e. high growth companies as well as the companies demonstrating higher growth prospect but available at reasonable valuations.

Our Observation & Recommendation :

  In the present Market Scenario, replete with uncertainty, we recommend that

  •  Risk return trade-off is likely to be favorable in a Multi-Cap Strategy.  The recent movements in Equity Markets is Conducive for Investing in Focused Multi Cap at this juncture
  •  Experienced Fund Management Teams both on Equity & Fixed Income fronts.
  •  Also Fund Manager will devise Portfolio Afresh in 1–2 months, capturing Volatility.

Performance of Equity Schemes of Invesco Mutual Fund

Scheme Name

Category

1-Year

3-Yrs

5-Yrs

10-Yrs

Invesco India Gold Fund

FOF -Domestic

35.94

19.2

13.44

Invesco India Midcap Fund

Mid Cap

16.02

5.33

9.29

13.24

Invesco India Smallcap Fund

Small Cap

15.79

Invesco India Infrastructure Fund

Infrastructure

12.75

2.17

6.35

7.35

Invesco India Contra Fund

Contra

11.18

6.58

11.06

11.78

Invesco India Tax Plan

ELSS

8.31

5.49

9.09

11.46

Invesco India Multicap Fund

Multi Cap

7.09

0.77

6.65

12.2

Invesco India Largecap Fund

Large Cap

5.03

4.03

7.77

8.99

Invesco India Growth Opportunities Fund

Large & Mid Cap

3.82

4.3

8.92

10.46

Data as on – 01-09-2020

 

Disclaimer : Mutual Fund Investments are subject to Market Risk. Read all scheme related document carefully.

Author: Midas Finserve

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