After beating an average peer in each of the last four calendar years, Invesco India Tax Plan finds itself among the bottom performers since the start of the current year. What's more ironic is that performance in a falling market has historically been a strong point for the fund (for example - 2008, 2011, 2018). It usually falls much lesser in a down market. But this year has taken some sheen off that distinction. In both the first two calendar quarters of 2022, the fund registered a much sharper drop than its peers. Dhimant Kothari, who manages the fund along with Amit Nigam, attributes it their call on inflation going wrong. In his interview, he explains that they believed the surge in inflation to be only transient and therefore went overweight on sectors that would benefit from moderation in inflation, such as consumer discretionary. But that didn't materialise owing to factors such as Russia-Ukraine war, which hurt the portfolio. While the fund managers continue to persist with a pro-cyclical stance (and therefore overweight on consumer discretionary and industrials), they have made some course corrections by tact
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