Invesco India Focused Fund Direct Payout of Income Dist cum Capital Wtdrl INF205KA1205

Invesco India Focused Fund earns an Average Process Pillar rating.

The leading factor in the rating is its team of two portfolio managers, which is enough to execute the process. Low costs across its parent firm's funds, whose fees, on average, rank in the middle quintile of their respective category, also support the rating. The pattern of low fees at the firm suggests that it is focused on delivering strong results for investors. 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 outperformed their respective category's median return for the period. The parent's subpar success ratio suggests that the firm could do better across its fund lineup.

This strategy does not differentiate itself from its Focused Fund category peers in terms of size and style exposure. Looking at additional factor exposure, this fund has constantly tilted toward stocks with higher trading volumes than its Morningstar Category Peers over the past few years. More-liquid assets are easier to buy and sell without adversely moving their prices and tend to provide some ballast during market selloffs. They also are easier to sell to meet redemptions if a host of investors decide to leave the fund in a short period of time. In recent months, the strategy was more exposed to the Liquidity factor compared with its Morningstar Category peers as well. This strategy has also had more exposure to high-momentum stocks in recent years. Momentum is based on the premise that stocks that have recently outperformed will continue to outperform, and those that have underperformed will stay behind. Compared with category peers, the strategy also had more exposure to the Momentum factor in the most recent month. In addition, this strategy has exhibited a tendency to hold fewer stocks with high dividend or buyback yields over peers in recent years. Returning capital to shareholders often is not the highest priority of such businesses. The shares of such companies can deliver strong returns if they fulfill their growth projections, but they also carry more risk. In recent months, the strategy also had less Yield factor exposure than 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 technology relative to the category average by 16.3 and 12.3 percentage points, respectively. The sectors with low exposure compared with category peers are financial services and communication services, underweight the average by 14.2 and 7.3 percentage points of assets, respectively. The portfolio is positioned across 22 holdings and is relatively concentrated. In particular, 60.7% of the fund’s assets are housed within the top 10 holdings, compared with the category’s 32.3% average. And finally, in terms of portfolio turnover, on a year-over-year basis, 101% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.