Fund outperformed peers across most trailing periods

Monday 4th February, 2019

Article Details
Publication  DNA
Source  Bureau
CCM  60.65
Edition  Mumbai | New Delhi
Supplement   DNA Money
MAV  727,800
Language  English
Page  4
Circulation  511,173

  • View Image
  • View PDF

Fund outperformed peers across most trailing periods
Invesco India Contra Fund
Crisil Research
Invesco India Contra Fund provides an opportunity to generate appreciation by investing predominantly in equity and equity-related instruments through contrarian investing. The fund featured in the top 30 percentile in the value/contra funds category of CRISIL Mutual Fund Rankings (CMFR) for the four quarters ended December 2018. Amit Ganatra and Taher Badshah have been managing the fund since August 2012 and January 2017, respectively Taher Badshah is chief investment officer -equity, with over 23 years of
experience. Amit Ganatra has over 15 years of experience and manages five pure equity schemes with total month-end assets under management (AUM) of Rs 5,083 crore as of December 2018.
The fund's month-end AUM jumped from Rs 849 crore in January 2016 to Rs 3,084 crore in December 2018.
Trailing returns
The fund has outperformed its peers (funds ranked in the value/contra funds' category in CMFR - September 2018) across all trailing periods. It outperformed the benchmark (S&P BSE 500
Fund Name
Fund category Benchmark Inception date CIO (Equity)
Fund manager QAAUM (December 2018) CRISIL Mutual Fund Rank Exit load
TRI) across all periods except the past one year.
An investment of Rs 10,000 in the fund at the time of inception (April 11, 2007) would have grown to Rs 45,490 (13.71% CAGR) on
Invesco India Contra Fund
Value/Contra S&P BSE 500 TRI April 11, 2007 Taher Badshah
Taher Badshah & Amit Ganatra Rs 2,726 crore
2 (as on September 2018)
Redemption within 1 year -1% After 1 year from the date of allotment - nil
January 23,2019 vis-a-vis the benchmark's Rs 33,511 (10.8% CAGR) and the category's Rs 39,178 (12.27% CAGR).
SIP returns
A monthly investment of Rs
10,000 through a systematic investment plan (SIP) for 10 years since February 2009 would have grown to Rs 27.52 lakh (XIRR 15.93%) as on January 23, 2019. A similar investment in the benchmark would have grown to Rs 22.5 lakh (XIRR 12.13%).
Risk-reward matrix
During the past three years, the fund outperformed its category as well as the benchmark on mean returns, while it remained more volatile than the benchmark and category average.
Portfolio analysis
During the past three years, the fund invested in 119 stocks and maintained average allocation of 60% to
large caps, 18.6% to mid-caps and 17.2% to small-caps. The fund steadily increased exposure to large-cap stocks from 49.9% in October 2016 to 71% in December 2018.
The top five sectors constituted 69.35% of the fund's portfolio in December 2018. In the past three years, banking, finance and auto sectors were some of the top contributors to the funds' performance.
The fund consistently held only five of the 119 stocks that it invested in during the three years. The exposure to consistently held stocks was 18.51%. V.I.P. Industries, HDFC Bank, Reliance Industries and HDFC consistently outperformed the benchmark index.