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Invesco India Business Leaders Fund

4 Value Research
0.91%
Change from previous, NAV as on May 27, 2016
Category: Equity: Large Cap
Assets: R 96 crore (As on Apr 30, 2016)
Expense: 2.44% (As on Apr 30, 2016)
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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
+ 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
Analysis
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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