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Invesco India Business Leaders Fund

4 Value Research
0.23%
Change from previous, NAV as on Oct 18, 2017
Category: Equity: Large Cap
Assets: R 131 crore (As on Sep 30, 2017)
Expense: 2.44% (As on Sep 30, 2017)
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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
+ Taher Badshah since Jan 2017
+ 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
Analysis
As on Oct 10, 2017

This fund has a slightly different mandate from other large-cap funds as it selects businesses that are in leadership positions in a sector. The fund saw its three-star rating upgraded to four stars two years ago and has held on to the rating.

The fund has been quite large-cap tilted, with a 90 per cent plus allocation to large caps and 5-10 per cent allocation to mid caps. Lately, the portfolio has been almost entirely large-cap oriented, with a 95 per cent plus allocation. This could have slowed recent performance, given the sustained outperformance from mid-cap stocks.

The fund is managed with a 'growth at a reasonable price' style. The portfolio is compact, with 40-50 stocks. The fund house's focus is on quality companies with strong cash flows and a high return on capital.

The fund has seen a slowdown in performance in the last one year, with the returns trailing the category returns by about 3 percentage points. But three- and five-year returns show it to be 4-5 percentage points ahead of the benchmark returns and 2-3 percentage points ahead of the category returns. The fund has outpaced its benchmark and category every year except 2012. The returns, however, have seen substantial acceleration after 2012. The slowdown in returns in the last one year could bear watching.

Its performance in a market crash is yet to be tested, though the fund survived the decline of 2011 rather well. The fund has recently seen Taher Badshah take over as fund manager and needs watching for any style changes.

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