Invesco India ELSS Tax Saver Fund Growth INF205K01270

Invesco India ELSS Tax Saver Fund earns an Average Process Pillar rating.

The largest contributor to the rating is the stability of the management team. Specifically, the fund has not seen a manager change in the last five years. Management team experience, which averages 13 years at this fund, also supports the process. However, the process is limited by the parent firm's five-year risk-adjusted success ratio of 44%. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. The parent's modest success ratio suggests that the firm could do better across its fund lineup.

This strategy tends to hold smaller, higher-growth companies than its average peer in the ELSS (Tax Savings) Morningstar Category. Examining additional factor exposure, the managers have been consistently underweighting yield compared with the Morningstar Category peer over recent years. Its preference for stocks with lower yields may well lead to a growthier portfolio. However, growth stocks court additional risks if their forecasts do not come to fruition and are often more volatile than companies with stable dividends. In the latest month, the strategy was also less exposed to the Yield factor compared with Morningstar Category peers. This strategy has also had more exposure to high-momentum stocks in recent years. Momentum strategies wager that market outperformers will continue to outperform, and laggards will continue to lag. Higher exposure to the former could mean the managers are overweighting stocks on winning streaks. Compared with category peers, the strategy also had more exposure to the Momentum factor in the most recent month. In addition, this strategy has favored high-quality stocks compared to peers over the years, which could be a good option for downside risk protection. High exposure to the quality factor means holding companies that are consistently profitable, growing, and have solid balance sheets. In this month, the strategy also had more exposure to the Quality factor over its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section.

The portfolio is overweight in industrials and consumer cyclical relative to the category average by 5.9 and 4.1 percentage points, respectively. The sectors with low exposure compared with category peers are financial services and utilities, underweight the average by 7.5 and 2.5 percentage points of assets, respectively. The portfolio is composed of 61 holdings and its assets are more dispersed than the typical peer in the category. In the most recent disclosure, 32.2% of the strategy's assets were concentrated in the top 10 fund holdings, compared to the category’s 39.6% average. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 90% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.