Top MFs: Invesco India Large Cap Fund

Objectives

Invesco India Largecap Fund-Growth is a Large Cap mutual fund scheme from Invesco Mutual Fund. This fund has been in existence for more than 12 yrs, having been launched on July 2009. The scheme seeks to generate capital appreciation by investing predominantly in large-cap companies. This fund has 97.64% investment in Indian stocks of which 70.17% is in large cap stocks, 4.9% is in mid cap stocks, 6.46% in small cap stocks.

Fund Highlights

1. The Current Net Asset Value of the Invesco India Largecap Fund as of 18 Jan 2022 is Rs 46.8000 for Growth option of its Regular plan.

2. Its trailing returns over different time periods are: 38.69% (1yr), 17.92% (3yr), 15.85% (5yr) and 12.89% (since launch). Whereas, Category returns for the same time duration are: 33.68% (1yr), 16.58% (3yr) and 16.06% (5yr).

3. The Invesco India Largecap Fund currently holds Assets under Management worth of Rs 428.69 crore.

4. The expense ratio of the fund is 2.61% for Regular plan.

5. The given fund doesn't attract any Exit Load.

6. Minimum investment required is Rs 1000 and minimum additional investment is Rs 1000. Minimum SIP investment is Rs 100.

Sector wise & company wise Holdings

 The fund has the majority of its money invested in Financial, Technology, Construction, Energy, Healthcare sectors. It has taken less exposure in Financial, Technology sectors compared to other funds in the category.

 The fund's top 5 holdings are in HDFC Bank Ltd., Infosys Ltd., ICICI Bank Ltd., Reliance Industries Ltd., Kotak Mahindra Bank Ltd.

Taxability of earnings:

Capital gains

• If the mutual fund units are sold after 1 year from the date of investment, gains upto Rs 1 lakh in a financial year are exempt from tax. Gains over Rs 1 lakh are taxed at the rate of 10%.

• If the mutual fund units are sold within 1 year from the date of investment, entire amount of gain is taxed at the rate of 15%.

• No tax is to be paid as long as you continue to hold the units.

Dividends

• Dividends are added to the income of the investors and taxed according to their respective tax slabs. Further, if an investor's dividend income exceeds Rs. 5,000 in a financial year, the fund house also deducts a TDS of 10% before distributing the dividend.

Fund manager-

Nitin Gosar

Education: Mr. Gosar holds a Master’s degree in Finance from ICFAI.

Experience: Prior to joining Invesco Mutual Fund, he was working with IFCI Financial Services Ltd. (I-Fin) as Research Analyst. He has also worked Batlivala & Karani Securities, SKP Securities and NDA Securities.

He also managed Invesco India PSU Equity Fund - since Jun 2018 and Invesco India Focused 20 Equity Fund - Regular Plan

Expert comment

The scheme is ideal for investors who are looking to invest money for at least 3-4 years and looking for high returns. At the same time, these investors should also be ready for possibility of moderate losses in their investments. The suggested investment horizon is the minimum time required for holding investments in the fund to reduce its downside risk and ensure that the returns become more predictable. The scheme's ability to deliver returns consistently is higher than most funds of its category. Its ability to control losses in a falling market is above average.