Funds of Fortnight

MF Select

Invesco India Contra Fund - Direct Plan (Growth)



Reason for recommendation 

Contra funds are guided by investment style that believes in swimming against the stream. The fund manager bets against the market trends. Contra strategy has helped funds in this category to outperform its benchmark and category last year when most of the sectors did not perform. Invesco India Contra fund is one such fund that has not only managed to outperform during the volatile times but also during bull phase of the market. In the year 2014 and 2017, the fund has outperformed its category and the benchmark both. The consistency in the performance of the fund can be gauged from the fact that it has remained at the top one per cent in terms of performance among its category. 

This performance has been achieved due to its stock selection strategy that invests in the company based on its fair value. This is a multi-cap fund that invests in companies across different caps. Currently, it has invested 70 per cent of its corpus in large-cap stocks and rest in mid and small-cap. 





In terms of the individual company, at the end of November 2018, the fund has a total of 42 stocks in its portfolio. Fund has a major holding in cyclical companies. Going ahead, the market is expected to perform better in the year 2019, hence we expect the fund to do better. Moreover, the presence of corporate banks such as ICICI Bank, SBI and Axis Bank instil confidence in the performance of the fund, going ahead.

Rate this article:
No rating
Comments are only visible to subscribers.

DALAL STREET INVESTMENT JOURNAL - DEMOCRATIZING WEALTH CREATION

Principal Officer: Mr. Shashikant Singh,
Email: principalofficer@dsij.in
Tel: (+91)-20-66663800

Compliance Officer: Mr. Rajesh Padode
Email: complianceofficer@dsij.in
Tel: (+91)-20-66663800

Grievance Officer: Mr. Rajesh Padode
Email: service@dsij.in
Tel: (+91)-20-66663800

Corresponding SEBI regional/local office address- SEBI Bhavan BKC, Plot No.C4-A, 'G' Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra.
Tel: +91-22-26449000 / 40459000 | Fax : +91-22-26449019-22 / 40459019-22 | E-mail : sebi@sebi.gov.in | Toll Free Investor Helpline: 1800 22 7575 | SEBI SCORES | SMARTODR