Fund of Fortnight

Fund of Fortnight

Invesco India Mid Cap Fund - Direct Plan (Growth)

Reason for recommendation 

The week ending November 2 saw major indices gaining by more than four per cent. Nevertheless, the index that gained the most among different market-cap indices is ‘Mid cap’ index. The S&P BSE Mid-cap index gained by 7.34 per cent as compared to 4.94 per cent by Sensex. Despite this gain, the mid-cap index is down by 12 per cent in the last six months. We believe that the mid-cap indices have bottomed out and the risk-reward relation of investing in a mid-cap fund is tilted more towards returns. 

Invesco India Mid Cap Fund is one such mid-cap dedicated fund that you can look to invest now. The fund has consistently remained in the top quartile in terms of performance since its inception. Looking at the holdings of the fund, it is likely to gain the most in case of revival in the mid-cap performance. The fund holds 85.37 per cent of its total assets in mid-cap companies, while the category holds 80.45 per cent. 

The fund is well-diversified in terms of holdings. Top 10 stocks hold around 36 per cent of total assets and not a single company's share is more than 4.5 per cent of total assets. In terms of sectors, top 3 sectors hold 41.3 per cent of total assets. Going ahead, the presence of stocks such as Aditya Birla Fashion and Retail, Indraprastha Gas and Exide Industries is going to generate returns for the fund and its investors. Hence, this fund is suitable for investors who have a long term investment horizon and can withstand short-term volatility.