Invesco India Multicap Fund: 21% Returns in 3 Years—Is It Worth Investing?

Fund Overview

• Launch Date: 17 March 2008
• Category: Equity
• Type: Multi-Cap
• Assets Under Management (AUM): ₹3,736 crore (as of 31 July 2024)
• Benchmark: Nifty 500 Multicap 50:25:25 Total Return Index

Costs and Fees

• NAV (Net Asset Value):
  • Growth Option: ₹133.8
  • IDCW (Income Distribution cum Capital Withdrawal): ₹121.32 (as of 28 August 2024)
• Minimum Investment: ₹1,000
• Minimum SIP Amount: ₹500
• Expense Ratio: 1.89% (as of 31 July 2024)
• Exit Load: 1% for redemption of units exceeding 10% of the investment within 365 days

Fund Management

• Fund Managers: Amit Nigam (3.8 years) and Dhimant Kothari (7 months)

Recent Portfolio Updates

• New Additions (June): Cummins India, Grindwell Norton, Infosys, JK Cement, KPIT Tech, Orchid Pharma, PB Fintech, Power Grid, Shyam Metalics and Energy, Suven Pharma, Tata Consumer, Transformers and Rectifiers India, Trent.
• Complete Exits (June): Abbott India, Coal India, K.P.R. Mill, Kajaria Ceramics, L&T, Lupin, Maruti Suzuki, NHPC, NTPC, Samvardhana Motherson, SBI, Sundram Fasteners.
• Complete Exits (July): CreditAccess Grameen, Equitas Small Finance Bank, Varun Beverages, Zomato.

Should You Invest?

This fund, which was repositioned in 2018 from a mid- and small-cap focus to a multi-cap strategy, has maintained a balanced allocation of about 40% in large caps and 60% in mid- and small-cap companies. The portfolio is diversified with careful selections in its top investments. The fund has grown alongside market opportunities and focuses on companies with long-term growth potential, without favouring any particular sector.

However, its performance has been inconsistent, with the fund sometimes struggling to outperform. Despite this, it has shown strength in protecting against losses during downturns, which is a positive sign for cautious investors.