Invesco Mutual Fund unveils ‘Focused 20 Equity Fund
Invesco India, the seventeenth-largest asset manager in the country that manages average assets under management of Rs 23,103 crore (Q1FY21) has launched Invesco India Focused 20 Equity Fund. It is an open-ended equity scheme that will invest in a maximum of 20 stocks across market capitalisation. This will be a multi-cap fund. The new fund offer (NFO) opens for subscription on September 9, 2020, and closes on September 23, 2020.
The minimum investment amount during the NFO is Rs 1,000 and thereafter, in the multiples of Re 1. Similarly, for SIP investments, the minimum application amount is Rs 500 and in multiples of Re 1 after that.
No exit load will be charged if up to 10 per cent of the units are redeemed or switched out within 1 year from the date of allotment. If more than 10 per cent of the units are redeemed or switched out within 1 year from the date of allotment, the exit load of 1 per cent will be charged. However, no exit load will be charged for units redeemed or switched after 1 year from the date of allotment.
Objective: It is an open-ended equity scheme that seeks to generate capital appreciation by investing in up to 20 stocks with the flexibility to move across the market capitalisation range.
Strategy: The fund will adopt a high conviction approach to investing, combining both growth and value plays. It will invest in up to 20 stocks. This multi-cap portfolio will have the flexibility to move across the market cap bands and can be a combination of both value and growth stocks. Stock selection will be based on the bottom-up approach. The initial filter of stocks will be based on the fund house investment philosophy and proprietary stock categorisation framework. At the end of July 2020, the fund house has 297 stocks under its research out of which, 138 are categorised under the different cap (large, mid, and small-cap). Out of these, a total of 138 stocks along with, 20 stocks of high conviction will form a part of this fund.
Based on the current view of the market, the fund is likely to have 50-70 per cent of its corpus in large-cap stocks, 30-50 per cent in mid-cap, and 0-20 per cent in the small-cap stocks.
Fund Manager: The scheme will be managed by Taher Badshah, CIO (Equities). The performance of the scheme will be benchmarked against S&P BSE 500 TRI. Other funds managed by the fund managers are Invesco India Contra Fund, Invesco Growth Opportunities Fund, Invesco India Dynamic Equity, and Invesco India Multicap Fund.