Invesco India Tax Plan mutual fund has new manager: Should you be worried?

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.

HOW HAS THE FUND PERFORMED?

With a 10-year return of 14.58%, the fund has massively outperformed the benchmark index (8.03%) and the category average (10.67%).

Growth of Rs 10,000 vis-a-vis category and benchmark

BASIC FACTS
Date of launch: 29 December 2006
Category: Equity
Type: Tax saving
Average AUM: Rs 550.14 crore
Benchmark: S&P BSE 200 Index

WHAT IT COSTS
NAVs (As on 22 May 2018)
Growth option: Rs 49
Dividend option: Rs 20
Minimum investment: Rs 500
Minimum sip amount: Rs 500
Expense ratio (%): 2.23
Exit load: 0% for redemption within 365 days

FUND MANAGER
Amit Ganatra
Tenure: 1 month
Education: B.COM(H), CA, CFA

WHERE DOES THE FUND INVEST?

HOW RISKY IS IT?

Wherever not specified, Data as on 30 April 2018. Source: Value Research

Should You Buy?
This tax-saving fund has a healthy track record and has consistently ranked in the first or the second quartile in its category. It follows a multi-cap approach with an emphasis on growth businesses. While in the past it had a mid-cap tilt, the fund has maintained a heavy large-cap bias for some years now. This has resulted in a slight dip in its return profile relative to peers.

The fund prefers to maintain a compact portfolio of around 40-45 stocks, allowing it to take large positions in its high conviction bets with the aim of delivering outperformance. Since the fund’s stewardship has changed only recently, investors may wait for the fund to build a track record under the new fund manager.