Invesco's new fund offers business cycle-based investing; key details

Invesco Mutual Fund has launched the Invesco India Business Cycle Fund; check the key details of this open-ended equity scheme here

Invesco Mutual Fund launched a new fund, Invesco India Business Cycle Fund, for investors on February 6, 2025. This is an open-ended equity scheme that follows a business cycle-based investing theme. The New Fund Offer (NFO) will close on February 20, 2025.

 

The Invesco India Business Cycle Fund aims to generate long-term capital appreciation by investing predominantly in equity and equity-related securities with a focus on riding business cycles through dynamic allocation between various sectors and stocks at different stages of business cycles in the economy, according to the Scheme Information Document (SID).

 

Invesco India Business Cycle Fund will be managed by Aditya Khemani and Amit Ganatra.

 

"At Invesco, we understand that macro trends such as GDP growth, inflation, and credit cycles significantly influence sectors, themes, and stocks. Equally important is recognizing a company's lifecycle in driving its stock performance. Therefore, it is prudent to not only understand economic and market cycles but also study the current phase of a company’s lifecycle to identify opportunities poised for success,” said Aditya Khemani, fund manager, Invesco Mutual Fund.

 

Relying solely on economic or market cycles, Amit Ganatra, head of equities & fund manager, Invesco Mutual Fund said, isn't enough, as each business has its own growth story. "We prefer companies in the startup and growth phases, where potential is highest. Our goal is to identify and invest in sectors, themes, and companies well-positioned in the current business cycle, focusing on pro-cyclical companies (70 percent) with some exposure to counter-cyclical companies (30 percent),” Ganatra added.

 

The fund is benchmarked to the Nifty 500 TRI. Invesco Mutual Fund, in its SID, has outlined that the risk for the scheme, as well as for the benchmark, is very high.

 

The minimum investment amount during the NFO is Rs 1,000, with additional investments allowed in multiples of Re 1 thereafter. For SIP investments, the minimum application amount is Rs 500, with increments in multiples of Re 1. The fund will charge an exit load of 0.50 percent for units redeemed or switched out on or before three months from the date of allotment. No exit load will be charged if units are redeemed or switched out after three months.

 

Invesco India Business Cycle Fund: Should you invest?  This NFO, as outlined in the SID, is suitable for investors who are seeking capital appreciation over the long term. Also, for investors who seek investments predominantly in equity and equity-related instruments with a focus on riding business cycles through dynamic allocation between various sectors and stocks at different stages of business cycles in the economy.