Invesco India Contra Fund: Fund Review

In the past three- and five-year periods, it has given 16% and 19% returns while its peers logged 12% and 15% returns during the same periods, respectively.

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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 three- and 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 relatively lower non-performing asset (NPA) issues, private sector banks and IT companies look attractive.

  • -2.07%Annualized Return for 2 year
  • >3 years Suggested Investment Horizon
  • N.ATime taken to double money
  • 8.57%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 3.11 YearsTime taken to double money
A distinct feature of the scheme’s portfolio is it is quite diversified in terms of sectoral approach which works in identifying long-term ideas.


Portfolio change (past 6 months)
New entrants Complete exits Increase in allocation
NTPC ITC Apex Frozen Foods
Bharat Electronics Petronet LNG Sun Pharma
Music Broadcast Gail (India) Axis Bank

Returns (in %)
Period CAGR return SIP CAGR return Equity thematic contra-
AVG annualised return
1 year -0.13 5.70 0.27
3 year 15.64 12.06 13.84
5 year 18.91 14.03 15.12

Returns peer comparison (in %)
Scheme 1-year 3-year 5-year
Kotak India EQ Contra Fund 5.90 16.44 14.28
L&T India Value Fund -4.75 13.30 20.25
Tata Equity PE Fund -5.53 16.06 18.24
Source: Accord Fintech; complied by ETIG Database

Expert Take
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Vishal Dhawan, 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.
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