Invesco India Growth Opportunities Fund: Fund review

One of the ideas, which is increasingly gaining ground among savvy fund managers, is that the market rally will be broader in the new year than what we have experienced in 2019. This means that the top ten quality stocks by weightage in benchmark indices alone won’t be the deciding factor.

There are two key reasons for this. One, these stocks are already trading at an enormous premium to their respective historical valuations. Two, they are also trading expensively with respect to their peers in their respective sectors. Given these facts, it makes sense to invest in schemes, which have a portfolio geared towards this line of thought.

One such scheme is Invesco India Growth which allocates 57% of its portfolio in bluechip companies and largecaps and the remaining in mid- and small-sized companies. In the past three-year and five-year periods, the scheme has given 16.5% and 11% returns while its peer schemes have given an average return of 9% and 11% during the same period.


Portfolio change (past six months)

New entrants	Complete exits	Increase in allocation
Abbott India	Mahindra & Mahindra	Axis Bank
Bandhan Bank	Gruh Finance	Ajanta Pharma
Bharat Electronics	Mahindra & Mahindra Fin Services	IndusInd Bank

Returns (in %)

Period	CAGR return	SIP CAGR return	Large & mid cap Average CAGR return
1 Year	12.04	16.17	9.89
3 Year	16.55	10.86	12.42
5 Year	10.99	12.00	9.33

Source: Accord Fintech; compiled by ETIG Database

Expert Take
Rupesh Bhansali,Head, Mutual Funds, GEPL Capital
One of the interesting aspects of the scheme’s portfolio is its composition which is constructed carefully. Close to 60-65% of the portfolio companies are geared towards the growth theme. The remaining part of the portfolio follows a value theme. In terms of sector composition, the scheme’s fund manager Amit Ganatra has created quite a diversified portfolio.