It is that time in markets when being invested with large-sized companies makes sense as they are are showing better earnings growth. One mutual fund that plays this theme is Invesco India Growth Fund. The fund is managed by Taher Badshah and Amit Ganatra. The investment style of the fund can be summed up in one expression: all-weather equity fund. Through bottom-up approach, the fund managers take controlled risks in all directions. There are two aspects to this: One, with respect to the benchmark index (S&P BSE 100), the fund managers are up to 50 per cent overweight on a sector or underweight. There is no deviation from this norm. The second aspect is that they also accommodate companies based on growth and value themes. This protects investors from severe downside in times of bear phase of markets. The fund managers choose stocks whose valuations are reasonable compared with its growth prospects.
In a portfolio of 36 stocks, the scheme has 75 per cent dedicated to the growth theme while 25 per cent is dedicated to value theme. With this strategy, the scheme has outperformed its peers and the benchmark by a good margin. In the past three-year and five-year periods, the scheme has delivered 15.2 per cent and 19 per cent returns, in contrast to 10 per cent and 13 per cent returns respectively by the S&P BSE 100 in the same period. At present, the scheme is overweight on consumer discretionary and financials, industrials indicating that the fund managers are banking on the big consumption and economy recovery themes.
