Invesco India Small Cap mutual fund's risk-return profile not among the best in the category

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.

BASIC FACTS
DATE OF LAUNCH
30 OCTOBER 2018
CATEGORY

EQUITY
TYPE
SMALL CAP
AUM*
Rs.2,869 crore
BENCHMARK
S&P BSE 250 SMALLCAP
TOTAL RETURN INDEX

WHAT IT COSTS
NAV**
GROWTH OPTION
Rs.29.18
IDCW**
Rs.29.18
MINIMUM INVESTMENT
Rs.1,000
MINIMUM SIP AMOUNT
Rs.500
EXPENSE RATIO# (%)
1.90
EXIT LOAD
For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days.

*AS ON 31 OCT 2023
**AS ON 13 NOV 2023
#AS ON 31 OCT 2023

FUND MANAGER
TAHER BADSHAH (IN PIC)/ADITYA KHEMANI
5 YEARS/ 0 MONTHS

Recent portfolio changes
New entrants
BSE, Century Textiles & Industries, Computer Age Management Services (Sept). Honasa Consumer, KPIT Technologies (Oct).
Complete exits
Balrampur Chini Mills, Barbeque-Nation Hospitality, Campus Activewear, Hindustan Unilever, Infosys (Sept). City Union Bank, ideaForge Technology, MTAR Technologies, VIP Industries (Oct).

Should you buy?
Apart from its small-cap tilt, this fund has a sizeable presence in mid caps. It prefers businesses with demonstrated potential of high growth, distinct competitive advantages, and characterised by high return on capital and ability to generate free cash flow. It remains fully invested and doesn’t take any cash calls. The fund portfolio is fairly diversified with up to 65 stocks, running modest positions even in top bets. In its running time of five years, the fund has built a healthy track record of outperformance. Yet, it has been a middling performer, with its risk-return profile not among the best in the category. It must kick into higher gear if it has to be counted among the top offerings in this space.

(Source: Value Research)