Invesco India Tax Plan

3 Value Research
Change from previous, NAV as on Oct 18, 2017
Category: Equity: Tax Planning
Assets: R 452 crore (As on Sep 30, 2017)
Expense: 2.47% (As on Sep 30, 2017)
Investment Objective

The scheme aims to generate long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities. It intends to invest across market capitalisation sectors utilizing bottom up approach. It will aim to have concentrated well researched portfolio, which would be around 20 - 50 stocks.

Fund Managers
+ Taher Badshah since Jan 2017
+ Vinay Paharia since Jun 2010
  • 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 Mar 28, 2017

A fund that has managed to beat its benchmark in seven out of the eight years since launch, it has retained a four-star rating almost all its life. Designed to own some of the house's best large-cap and mid-cap ideas, the fund prefers quality businesses with healthy growth. But it is careful about not going overboard on valuations. It does not take tactical cash or sector calls. After remaining overweight on mid caps until late 2015, the fund has shifted gears in the last one year. Its large-cap allocations have been raised from 60 to 70 per cent in the past one year, with mid-cap weights trimmed from nearly 40 to 25 per cent. This should hold the fund in good stead should the stiffly priced mid caps correct in the market.

The year-to-year returns of this fund show it to be equally good at navigating both bull and bear markets. It managed to contain downside to levels much lower than its benchmark during 2008 and 2011 and has outpaced it by big margins both in 2010 and 2014. The last one year has seen the fund outpace its benchmark, but it slightly lagged behind its category. This could be due to its higher large-cap tilt in a category that is largely multi-cap-focused.

This fund is a good choice for investors who are looking for a conservative approach to tax planning.

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