This large-cap equity mutual fund gave 19% returns in 3 years; should you buy?

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.

INVESCO INDIA LARGE CAP
BASIC FACTS
DATE OF LAUNCH
21 AUGUST 2009

CATEGORY
EQUITY
TYPE
LARGE CAP
AUM*
Rs.909 crore
BENCHMARK
NIFTY 100 TOTAL
RETURN INDEX

WHAT IT COSTS
NAV**
GROWTH OPTION
Rs.55.81
IDCW**
Rs.25.77
MINIMUM INVESTMENT
Rs.1,000

MINIMUM SIP AMOUNT
Rs.100

EXPENSE RATIO# (%)
2.18
EXIT LOAD
0%

*AS ON 31 DEC 2023
**AS ON 30 JAN 2024
#AS ON 31 DEC 2023

FUND MANAGER
HITEN JAIN/AMIT NIGAM (PIC)
1 MONTH / 3 YEARS, 3 MONTHS

Recent portfolio changes
New entrants
Bharat Petroleum Corp, BSE, Container Corporation of India, DLF, Eicher Motors, Max Healthcare Institute, Trent (Nov). DOMS Industries, Mankind Pharma, REC, Varun Beverages (Dec).
Complete exits
Devyani International, GR Infraprojects, Kajaria Ceramics, Star Health & Allied Insurance (Nov). ITC, Jio Financial Services, Samvardhana Motherson, Ramco Cements, Torrent Pharmaceuticals (Dec).

Should You Buy?
This fund, earlier run under the ‘Business Leaders’ moniker, adopted the large-cap mandate in 2018. It mainly prefers growth stocks, with some exposure to value picks. Within large caps, it prefers businesses with strong execution capabilities, potential for ROE expansion or industry-leading ROE, and where growth is higher than industry. It aims to generate alpha from both stock selection and sector calls. However, it does not take cash calls. The fund endured a sharp dip in performance in 2022, but has since come back strongly, outperforming the index comfortably. Over longer time frames, its direct plan has delivered, even as the regular variant has struggled. The latter needs the turnaround to sustain to remain in the reckoning.