Invesco Mutual Fund Files Draft with SEBI for India Manufacturing Fund

Introduction

Invesco Mutual Fund has recently filed draft papers with the Securities and Exchange Board of India (SEBI) for its new open-ended equity scheme, the Invesco India Manufacturing Fund. This scheme will follow the manufacturing theme, aiming to provide investors with capital appreciation over the long term by investing predominantly in equity and equity-related instruments of companies within the manufacturing sector.

Scheme Overview

• Investment Suitability

The Invesco India Manufacturing Fund is suitable for investors seeking long-term capital appreciation. The scheme focuses on companies that follow the manufacturing theme, offering a diversified portfolio of equity and equity-related instruments.

• Benchmark and Category

The benchmark for the Invesco India Manufacturing Fund is the Nifty India Manufacturing TRI. The scheme falls under the thematic fund category, specifically targeting the manufacturing sector.

• Investment Objective

The primary objective of the scheme is to generate capital appreciation by investing in a diversified portfolio of equity and equity-related instruments of companies within the manufacturing theme. However, there is no assurance that the investment objective will be achieved.

• Plans and Options

The scheme offers two plans:

1. Regular Plan
2. Direct Plan

Each plan offers the following options:

• Growth option
• Income Distribution cum Capital Withdrawal (IDCW) option
•  IDCW Payout
•  IDCW Reinvestment
• Investment Details

Minimum/Additional Application Amount: Rs 1,000 per application and in multiples of Re.1 thereafter.

Minimum Target Amount: Rs 10 crore

Minimum Redemption Amount: Rs 1,000 or 0.001 unit or account balance, whichever is lower.

• Load Structure

Entry Load: Nil

Exit Load – For each purchase through Lumpsum, switch-in, SIP, and STP:

•   If units are redeemed/switched out within 1 year from the date of allotment:
•    Nil for up to 10% of units allotted.
•    1% for any redemption/switch-out in excess of 10% of units allotted.
•     No exit load if units are redeemed/switched out after 1 year from the date of allotment.

For each purchase through IDCW Transfer Plan:

• 1% exit load if units are redeemed/switched out on or before 1 year from the date of  allotment.
• No exit load if units are redeemed/switched out after 1 year from the date of allotment.
• Switch between the Plans under the Scheme: Nil.
• Exit load, if charged, will be credited back to the scheme net of Goods and Services Tax.

Asset Allocation Pattern

Stock Selection Pattern

The proprietary stock categorization system helps identify the best investment opportunities within the universe. Each category describes the fundamental attributes expected of the company.

Manufacturing Theme Businesses

The following types of businesses are part of the manufacturing theme:

• Companies engaged in manufacturing and deriving revenue from investments in plant and machinery.
• Companies benefiting from the government’s focus on making India a ‘Global Manufacturing Hub.’
• Companies investing in new manufacturing plants or undertaking capacity expansion.
• Companies providing services/supplies to manufacturing companies, such as IT hardware, network infrastructure, data solutions, logistics, etc.
• Companies globally competitive in manufacturing operations.

Fund Managers

The Invesco India Manufacturing Fund will be managed by:

• Mr. Amit Ganatra
• Mr. Dhimant Kothari

By investing in the Invesco India Manufacturing Fund, investors can potentially benefit from the growth and development of the manufacturing sector in India, aligning their investments with the country’s economic goals and industrial expansion.

Dreaming of financial freedom? Use our Online SIP Calculator to see how regular investments can add up to grow wealth. Take the first step towards your goals. Calculate now!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.