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Invesco India Arbitrage

Invesco India Arbitrage

All Cap
Commodities
India Debt Liquid Market
Liquid
Others
Emotionally driven
Investor Profile
1–7 yearsInvestment Horizon
HNI, UHNI, Retail Investor, Mass AffluentTarget Segments
SEBI registered equity mutual fund suitable for all investor categoriesRegulatory Fit
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Invesco India Arbitrage Fund Growth invests in alternative assets for non-traditional growth opportunities.

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What This Strategy Does

Invesco India Arbitrage Gr is an equity arbitrage fund which captures India's ₹1.5 trillion financial services opportunity through cash-equity arbitrage, deploying capital across financials and industrials to achieve benchmark-aligned compounding.

CW Expert Research Notes

Performance and Risk Analysis

Historical returns, volatility patterns, and how this fund has performed relative to its benchmark.

Fund Performance

Fund Performance

0.0% AnnuallyAlpha
+5.8% vs +9.2% benchmarkSince Inception
+6.7% vs +6.1% benchmark3Y Annualized
+6.4% vs +4.5% benchmark5Y Annualized
Invesco India Arbitrage
Benchmark Index
Fund Performance

Benchmark Performance Comparison

Invesco India Arbitrage Fund
FD Returns
Given the product’s limited performance history, the assessment considers the fund house’s track record and the historical performance of comparable strategies managed by the same fund house, which follow similar investment approaches. Such comparisons provide historical context only and do not represent the performance of the new product or indicate its future returns.
Risk Profile

Risk Profile

Standard Deviation0.7%
Sharpe Ratio0.80

Detailed Risks

Market Risk

Potential economic slowdown in India could reduce arbitrage opportunities, mitigated by diversified exposure.

Disclaimer: Products compared like fixed deposits may provide fixed guaranteed returns. Mutual Funds investments are subject to market risk, read all scheme related documents carefully before investing. Past performance is not an indicator of future returns.

Strategy Details

A closer look at the investment thesis, portfolio construction, and current holdings.

Core Investment Theme

Core Investment Theme

Captures pricing inefficiencies across asset classes through arbitrage strategies. This approach aims to generate low-volatility returns by exploiting temporary mispricings between cash and derivative markets, providing a source of uncorrelated alpha.

Broader Market View

Market Outlook

The global economy faces headwinds from elevated inflation and tightening monetary policies. However, opportunities exist in sectors poised to benefit from secular trends like digitalization and sustainability.

Why This Strategy is Attractive Now

This strategy aims to capitalize on long-term structural growth drivers while mitigating risks through diversification. Its focus on quality companies with sustainable competitive advantages could provide resilience during market volatility.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth strategy, emphasizing companies with durable competitive advantages, robust profitability, and consistent earnings growth across market cycles.

Why it Makes Sense

In the current environment of moderating economic growth and elevated uncertainty, a Quality Growth approach focused on market-leading franchises with pricing power and resilient business models could offer a compelling risk-return profile.

High-Level Investment Process

Sourcing: The strategy appears to source investment ideas from a broad universe of quality companies across market capitalizations and sectors, with a preference for those demonstrating sustainable competitive advantages and attractive long-term growth prospects. Selection: The selection process suggests an emphasis on companies with strong fundamentals, including consistent profitability, robust free cash flow generation, healthy balance sheets, and capable management teams executing on well-defined strategies. Construction: Portfolio construction is consistent with a focus on risk management through diversification across sectors and individual positions, while maintaining an overweight exposure to companies positioned to compound earnings growth over an extended horizon.
Portfolio Holdings Overview

Portfolio Holdings Overview

SectoralAllocation
Capital Goods18.82%
Utilities3.79%
Energy & Infra8.12%
Financial Services43.35%
Consumers9.67%
Technology3.04%
Services13.21%

Geographic Allocation

Domestic100%
Top Stock Holdings

Top Stock Holdings

CompanySectorAllocation
Net Receivables / (Payables)Utilities72.89%
Invesco India Liquid Dir GrUtilities10.73%
HDFC Bank LtdFinancial Services6.00%
Invesco India Money Market Dir GrUtilities4.90%
Axis Bank LtdFinancial Services3.46%
ICICI Bank LtdFinancial Services3.42%
Bharti Airtel LtdServices3.42%
Triparty RepoUtilities3.09%
Reliance Industries LtdEnergy & Infra2.56%
Vodafone Idea LtdServices2.41%

Operational & Regulatory Details

What it costs to invest, transaction mechanics, and regulatory disclosures you should know.

iconCosts and Fees

Total Expense Ratio (TER)2.97%
Exit Load0.5%

iconRegulatory & Tax Information

INF205K01122
verified
ISIN
DailyDealing Frequency

LTCG | >1Year 12.5%% on gain above 1.25 Lakh

STCG | <1Year 20%%

Tax Implications (India)
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