This mid-cap equity mutual fund gave 29.2% returns in 3 years; should you invest?

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 MID CAP
BASIC FACTS
DATE OF LAUNCH
19 APRIL 2007

CATEGORY
EQUITY
TYPE
MID CAP
AUM*
Rs.3,755 crore
BENCHMARK
S&P BSE 150 MIDCAP
TOTAL RETURN INDEX

WHAT IT COSTS
NAV**
GROWTH OPTION
Rs.117.22
IDCW**
Rs.44.32
MINIMUM INVESTMENT
Rs.1,000

MINIMUM SIP AMOUNT
Rs.500

EXPENSE RATIO# (%)
1.89
For units in excess of 10% of investment, 1% will be charged for redemption within 365 days.

*AS ON 30 NOV 2023
**AS ON 12 DEC 2023
#AS ON 31 OCT 2023

FUND MANAGER
AMIT GANATRA (LEFT)/ADITYA KHEMANI
2 MONTHS / 0 MONTHS

Recent portfolio changes

New entrants
Apar Industries, Cummins India, Ethos, Gland Pharma, Global Health, Honasa Consumer, Interglobe Aviation, Max Financial Services, Prestige Estates Projects, Sobha (Nov).

Complete exits
AU Small Finance Bank, Balkrishna Inds, Bank of Baroda, Can Fin Homes, CIE Automotive, Endurance Technologies, Escorts Kubota, Hindustan Aeronautics, ICICI Bank, Motherson Sumi Wiring, Samvardhana Motherson, SBI Life, Suzlon Energy, United Breweries, United Spirits, Voltas (Nov).

Should You Buy?
Apart from its mid-cap tilt, this fund retains a sizeable presence in large and small caps. The fund’s preference is for growth-oriented, niche businesses, with strong cash flows, healthy balance sheets and management pedigree. Its portfolio size has now expanded to more than 60 stocks, compared to its earlier stance of running a compact portfolio. It retains modest positions even in its top bets. The fund’s performance has dipped in recent years as market preferences have shifted away from growth names, even as its long-term track record has remained healthy. Its growth bias requires the cycle to turn in its favour. New fund managers at the helm will need time to prove execution capabilities.