i ee || Invesco India Midcap
Resilient performance in volatile markets
While the category slumped by about 10 % over the past year, the mid-cap fund fell 3.8 %
Investors looking to invest in mid-cap funds can consider Invesco India Midcap.The scheme has managed to contain the downside well in the ongoing market correction.While midcap funds as a category have slumped about 10 per cent on an average over the past year, Invesco India Midcap has fallen by a lower 3.8 per cent.The fund predominantly invests in mid-cap companies (101-2501 company in terms of full-market capitalisation) and is benchmarked against Nifty Midcap 100 .
The scheme has a track record of more than a decade.Over a 10year period, the fund has delivered 24.6 per cent and is placed among the top quartile of funds across all time-frames.Over three as well as five-year periods, it has managed to outshine the benchmark and delivered 10.9 per cent and 22.5 per cent, respectively.Invesco India Midcap has beaten peers such as HDFC Mid-Cap opportunities, L&T Midcap and Aditya Birla SL Midcap in the past year .
Strategy and portfolio
After putting up a good show in 2013 and 2014, the fund experienced lacklustre performance in the ensuing years, but bounced back strongly in 2017.The scheme has also shown resilience in its performance this year, amid market volatility.The fund invests 9598 per cent in equities and the balance in debt.It mainly invests in mid-caps that are focussed on growth .
Invesco India Midcap fre annual returns (in %) 7 Invesco India Mid Cap IM NIFTY Midcap 100 TRI
Assets as on Oct 31, 2018:?227 crore 11.6 % Finance
9.7 % Pharma 9.5 % Banks quently churns sector and stock allocations.For instance, while consumer non-durables, industrial products and industrial capital goods were the top three sector choices in the beginning of the year, it has since trimmed allocation in these sectors and exited stocks in the industrial capital goods space.It has also exited hotels, fertilisers and media sectors in the past year .
8.8 % Auto ancillary 8.3 % Gas 7.5 % Industrial products
37.5 % Others
7.1 % Construction projects
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3 years 5 years Software, healthcare services and metals have instead entered the fund's portfolio.The fund's current preferred top three sectors are finance, pharma and banks .
Although the fund has concentrated allocations to these sectors, exposure to individual stocks is diffused, thus mitigating risk.Barring a few top stocks with 3.5-4 per cent allocation, investments in other stocks are lower .
The fund has about 40 stocks in its portfolio.The fund recently added M&M Financial Services, Torrent pharmaceuticals and L&T Finance Holdings, while exiting stocks such as V-Mart Retail, Thermax and PNB Housing Finance .
It is underweight on automobile and construction sectors, and overweight on healthcare, chemicals and metals.= top-quartile fund across time-frames
`` Contains downside well
Finance and pharma are top sector choices