Invesco India Business Leaders Fund

4 Value Research
Change from previous, NAV as on Jul 25, 2016
Category: Equity: Large Cap
Assets: R 109 crore (As on Jun 30, 2016)
Expense: 2.41% (As on Jun 30, 2016)
Investment Objective

The scheme will invest primarily in equity and equity related instruments including equity derivatives of companies which should be leaders on the respective industry.

Fund Managers
+ Vetri Subramaniam since Jul 2009
+ Vinay Paharia since Jun 2014
  • Education: Mr. Paharia holds a B.Com degree from Narsee Monjee College and an M.M.S. degree from Welingkar Institute of Management, Mumbai.
  • Experience: Prior to joining Religare Invesco Asset Management Company (Jan 2007-Present) he was associated with DBS Cholamandalam AMC (Jan 2006-Jan 2007), K R Choksey Shares and Securities Pvt Ltd (Jan 2004-Jan 2006), First Global Stock broking Pvt. Ltd (Jun 2002-Jan 2004).
  • Funds Managed:
  • Invesco India Mid N Small Cap Fund - since May 2008
  • Invesco India Mid Cap Fund - since Dec 2008
  • Invesco India Tax Plan - since Jun 2010
  • Invesco India Business Leaders Fund - since Jun 2014
As on Jan 04, 2016

A fund which selects stocks based on the company's leadership position in a sector rather than by market cap, it has floated to the top mainly due to three-year returns. It has improved its ratings from three to four stars in the last one year. The fund leans towards giant caps and owns a compact portfolio of 30 odd stocks, made possible by its small asset size. The investment thesis is that sector leaders manage to earn significantly higher shareholder returns than the also-rans in an industry and thus deliver wealth creation over the long run. The investment approach is bottom-up and growth-oriented. The fund swears by buy-and-hold and has a low portfolio turnover of 40 per cent. The house has a strong quality bias and stays away from companies with balance-sheet issues or unsustainable growth. Despite a relatively short track record compared to stalwarts in the category, the fund has acquitted itself well against the peers.

The fund's one-, three- and five-year returns are all ahead of the category by two to three percentage points. Though the fund's focus on sector leaders allows it greater freedom to invest across the market-capitalisation range, in practice, the focus has been mainly on large-cap stocks. Large-cap allocations have been at 90 per cent plus consistently, higher than most of the peers in this category.

It's a good fund for the core portfolio, given its well-defined and unique investment proposition.

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