Launched in April 2007, Invesco India Midcap Fund featured in the top 30 percentile of the mid-cap category in CRISIL Mutual Fund Ranking (CMFR) for the last three quarters ended March 2019. The month-end assets under management (AUM) of the fund increased over two times, from Rs 128 crore in May 2016 to Rs 369 crore in April 2019.
The fund is managed by Pranav Gokhale and Neelesh Dhamnaskar since March 2018 and July 2018, respectively.
The investment objective of the scheme is to generate capital appreciation by investing a minimum 65 per cent of the portfolio in mid-cap companies.
The fund has consistently outperformed the benchmark (Nifty Midcap 100 TRI) and its peers (funds ranked under the mid-cap category in March 2019 CMFR) in all the trailing periods under analysis. An investment of Rs 10,000 in the fund on April 19, 2007, (inception of the fund) would have grown to Rs 49,240 on June 3, 2019, at an annualised rate of 14.04 per cent per annum. The same investment in the category and the benchmark would have grown to Rs 41,391 (12.42 per cent) and Rs 41,359 (12.41 per cent), respectively. Systematic investment plan (SIP) is a disciplined mode of investing offered by mutual funds, through which one can invest a certain amount at regular intervals. A monthly investment of Rs 10,000 for the last 10 years in the fund would have grown to Rs 28.37 lakh (16.63 per cent annualised return) as compared to Rs 23.07 lakh (12.73 per cent) in the benchmark.
During the past three years, the fund maintained a predominant allocation to mid-cap and small-cap stocks. Allocation to mid-cap stocks averaged 48.53 per cent during this period, while small-cap and large-cap allocations averaged 30.25 per cent and 17.62 per cent, respectively. Post Sebi categorisation of mutual funds in March 2018, the fund increased exposure to mid-cap stocks to align its portfolio with the category definition, which requires a minimum 65 per cent exposure to mid-cap stocks.
The fund invested in 102 stocks during the past three years, diversified across 57 sectors. The predominant and consistent allocation was to the pharmaceuticals sector (7.92 per cent allocation, on average), followed by banks (7.7 per cent), non-banking financial companies (5.52 per cent), engineering, designing and construction (5.15 per cent), and breweries/distilleries (4.22 per cent).
Vinati Organics, VIP Industries, RBL Bank, V-Mart Retail and United Breweries have been the major contributors to the fund’s performance during the past three years.