Invesco Mutual Fund launches Focused 20 equity fund

Invesco Mutual Fund, on September 9, announced the launch of its new fund Invesco India Focused 20 Equity Fund, which is an open-ended equity scheme for multi-cap, investing in a maximum of 20 stocks across market capitalisation.

"The fund seeks to generate capital appreciation by investing in up to 20 stocks with a flexibility to move across the market capitalisation range. The fund will adopt a high conviction approach to investing with meaningful allocation to each stock idea yet maintaining a balance between conviction and diversification," the company said in a media release.

As per the fund house, currently, a large portion of the portfolio will be invested in large-cap stocks (approximately between 50-70 percent), exposure to mid-cap stocks will be in the range of 30 percent to 50 percent, while exposure to small-cap stocks will be in the range 0–20 percent of the portfolio which may change from time to time.

The portfolio will comprise of both growth and value stocks. The fund will be benchmarked to S&P BSE 500 TRI, the fund house said.

The new fund offer (NFO) will be open for subscription from September 09, 2020, and will close on September 23, 2020.

The minimum investment amount during the NFO is Rs 1,000 and in multiples of Rs 1 thereafter. For SIP investments, the minimum application amount is Rs 500 and in multiples of Rs 1 thereafter, said the asset management company.

No exit load will be charged if up to 10 percent of the units are redeemed or switched out within 1 year from the date of allotment. If more than 10 percent of the units are redeemed/switched out within 1 year from the date of allotment, an exit load of 1 percent will be charged. No exit load will be charged for units redeemed/switched after 1 year from the date of allotment, Invesco said.

On the occasion, Saurabh Nanavati, Chief Executive Officer, Invesco Mutual Fund said: “If you analyze the data you will find a handful of stocks have contributed to most of the returns at different points in time."

"There is also a huge divergence in returns across and within the sectors which lays emphasis on the right stock selection. Our investment expertise and research prowess enable us to identify the right investment ideas with the potential of generating wealth and helping investors get closer to their financial objectives."