Focusing on Value Across Sectors
Tuesday 30th April, 2019
|| The Economic Times
|| Rajesh N Naidu
m.lnvesco India Contra Fund FocUS ing on Value Across Sectors Understanding valuation of the markets has become a tad difficult in the current situation. Most analysts are finding it difficult to ascertain whether the present valuation of big corporations justify their future trend of earnings. This is because of a lack of secular growth in demand across Key sectors. Because of this, many big companies have adopted a cautious stance on capital expenditure. Given such an uncertainty, it makes sense to go to the basics of investing: Value Investing. The key reason being it is sharply focused on attractiveness of a stock based on its intrinsic value. Among schemes which focus on value investing, investors can consider investing in Invesco India Contra Fund. The scheme is the best performer among its peers. In the past threeand five-year periods, it has given 16% and 19% returns while its peers logged 12% and 15% returns during the same periods, respectively. In the past six months, the scheme's fund managers Amit Ganatra and Taher Badshah have constructed a portfolio which has high weightage to private sector banks and IT companies. With a falling rupee and = Jd lower non-performing asset (NPA) issues, private sector banks and IT companies look attractive. A distinct feature of the schemes portfolio is it is quite diversified in terms of sectoral approach which Works in identifying long-term ideas. Rajesh N Naidu/ ET Intelligence Group PORTFOLIO CHANGE (PAST 6 MONTHS) New Entrants Complete Exits Increase in Allocation NTPC 1 nc | Apex Frozen Foods Bharat Electronics | PetronetLNG | Sun Pharma Music Broadcast GAIL (India) Axis Bank e EQUITY THEMATIC RETURNS (in %) CONTRA AVG PERIOD CAGRRETURN SIPCAGRRETURN ANNUALISED RETURN (%) 1Year | -0.13 | 5.70 | 0.27 3Year | 15.64 | 12.06 | 13.84 5Year | 18.91 | 14.03 | 15.12 RETURNS PEER COMPARISON (in %) 1-YEAR 3-YEAR S-YEAR | 5.90 | 16.44 | 14.28 -4.75 | 13.30 | 20.05 | -5.53 | 16.06 | 18.24 Kotak India EQ Contra Fund Regular L&T India Value Fund Tata Equity PE Fund Regular Plan Source: Accord Fintech, Compiled by ETIG Database VISHAL DHAWAN, Expert Take Founder, Plan Ahead Wealth Advisors Invesco India Contra Fund has a value-oriented approach that has worked well for it in the past. Its flexibility to move across market capitalisations and willingness to make those shifts has worked well. Investors who are comfortable with a value style of investing and have a 7-10 year investment horizon could include this scheme in their portfolio.