Fund review: Controlled risk strategy pays off for India Growth scheme

ET INTELLIGENCE GROUP: It is the time to stay invested in large-size companies which are well-researched and provide information to large extent, have long record of financial performance, established brands and market share. Keeping in mind this strategy, investors can buy into the Invesco India Growth scheme.

It is managed by Vetri Subramaniam and Amit Ganatra. The allweather equity fund follows bottoms-up approach, where the fund managers take controlled risks in all directions. One, the fund managers are either 50% overweight on a stock or underweight against the benchmark index (S&P BSE 100). Another factor that explains the fund managers’ strategy is to accommodate companies based on growth and value themes. This protects severe downside in times of bear phase of markets.

In a portfolio of 40-43 stocks, the scheme has 60-75% exposure to growth theme, while 20-25% of its portfolio is dedicated to value theme. Due to this controlled risk strategy, the scheme has outperformed its peers and benchmark index by a reasonably good margin. At present, the scheme is overweight on themes such as consumer discretionary and utilities indicating that the fund managers are banking on the big consumption theme across sectors.