Invesco India Business Cycle Fund: New Fund Filing with SEBI

Introduction

Invesco Mutual Fund has filed a draft with SEBI for its new offering, the Invesco India Business Cycle Fund. This thematic equity scheme aims to capitalize on business cycle trends by dynamically adjusting its sectoral and stock allocation.

Fund Overview

Name of the Fund: Invesco India Business Cycle Fund
Category: Thematic Fund
Type: Open-ended equity scheme
Fund Manager: Mr. Aditya Khemani and Mr. Amit Ganatra
Benchmark: Nifty 500 TRI
Fund Objective: The fund seeks long-term capital appreciation by investing predominantly in equities and equity-related securities. The focus is on riding the business cycles through dynamic sectoral and stock allocation.

Investment Strategy

The Invesco India Business Cycle Fund plans to follow an active investment strategy. By closely monitoring economic parameters like GDP growth, corporate profit trends, interest rates, and business sentiment, the fund manager will adjust the portfolio to reflect the different stages of the business cycle—expansion, peak, contraction, and trough. The idea is to identify economic trends and invest in sectors that are likely to outperform during each stage.

Asset Allocation

The fund’s asset allocation is designed to be flexible, with the primary focus on equities. The indicative allocation is as follows:

• Equity and equity-related instruments: 80-100% (selected based on the business cycle)
• Other equity instruments: 0-20%
• Debt and Money Market Instruments: 0-20%
• REITs and InvITs: Up to 10%

Benchmark

The scheme’s performance will be benchmarked against the Nifty 500 TRI (Total Return Index), which reflects the performance of 500 stocks representing the broader Indian equity market. The TRI includes dividends and capital gains, offering a more comprehensive view of returns compared to simple price indices.

Fund Manager

The fund will be managed by Mr. Aditya Khemani and Mr. Amit Ganatra, both seasoned professionals with significant experience in managing equity portfolios. Mr. Khemani has over 18 years of experience, while Mr. Ganatra has been in the industry for more than 17 years, making them well-equipped to handle the dynamic nature of business cycle investing.

Why Invest?

This fund is ideal for investors seeking long-term capital appreciation who are willing to ride the cyclical ups and downs of the market. The business cycle approach ensures that the fund adjusts its strategy based on macroeconomic conditions, making it a compelling option for those looking to benefit from sectoral rotation.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.