Invesco India Contra Fund

Diversified

Equity

India Super Value

Others

Small Cap

Aggressive growth Investor Profile

Investor Profile

1–7 yearsInvestment Horizon

HNI, UHNI, Retail Investor, Mass AffluentTarget Segments

SEBI registered equity mutual fund suitable for all investor categoriesRegulatory Fit

Invesco India Contra Fund Growth invests in undervalued Indian companies offering good long-term potential.

What This Strategy Does

Invesco India Contra Fund Growth is an equity fund which captures India's broad-based earnings growth through a contrarian investment approach, deploying capital across financials, industrials, and consumer sectors to achieve benchmark-aligned compounding.

CW Expert Research Notes

Consistent Outperformance

The fund has demonstrated resilient benchmark-relative behavior, outperforming in 7 out of the past 12 years, suggesting a robust investment process capable of delivering consistent earnings across market cycles.

Contrarian Positioning

The fund's contrarian approach is expressed through an overweight in industrials and consumer cyclicals, reflecting conviction in companies like Larsen & Toubro and Maruti Suzuki that could benefit from an economic recovery.

Valuation Opportunity

With a beta of 1.01 and reasonable valuation relative to history, the fund could participate in further market upside if the macro thesis around capex revival and earnings momentum plays out.

Performance and Risk Analysis

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

Fund Performance

-4.1% AnnuallyAlpha

+12.9% vs +9.9% benchmarkSince Inception

+13.7% vs +6.3% benchmark3Y Annualized

+12.5% vs +6.5% benchmark5Y Annualized

Invesco India Contra Fund

Benchmark Index

Benchmark Performance Comparison

Invesco India Contra Fund

NIFTY 50

Risk Profile

Standard Deviation17.9%

Maximum Drawdown-17.9% | Oct 2024

Sharpe Ratio-0.25

Beta0.97

Upside Capture108%

Detailed Risks

Market Risk

Potential recession in India due to rising inflation could dampen consumer demand, impacting fund's cyclical holdings.

Liquidity Risk

High mid-cap exposure could face liquidity stress during market sell-offs, hindering rebalancing.

Concentration Risk

Concentrated exposure to Indian banks facing asset quality issues and fintech disruption.

Specific Strategy Risk

Regulatory tightening on digital lending could pressure fintech holdings' growth prospects.

Strategy Details

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

Core Investment Theme

Capitalizes on India's structural growth by investing in companies that defy the economic cycle. This contrarian approach seeks out quality businesses trading at discounts due to temporary challenges or market overreactions.

Broader Market View

Market Outlook

Equity markets appear to be entering a mid-cycle phase, with consumption and earnings recovery gaining traction. This normalization backdrop, supported by trends like reviving capex and credit growth, offers an attractive entry point. The strategy's tilt towards consumer, financial services and technology appears well-aligned, though competitive pressures and cyclicality pose risks.

Why This Strategy is Attractive Now

The strategy seems positioned to capitalize on the current environment through balanced exposure across consumer cyclicals, defensives, financials and technology. The portfolio's diversification across around 70 holdings, including market leaders, offers flexibility. With a moderate beta and risk-adjusted approach, the strategy appears differentiated from benchmarks to navigate evolving conditions.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth approach, emphasizing companies with durable competitive advantages, consistent earnings growth, and reasonable valuations across large and mid-cap market segments.

Why it Makes Sense

In the current environment of moderating economic growth and elevated uncertainty, a Quality Growth strategy focused on companies with pricing power, recurring revenues, and strong balance sheets may offer a compelling risk-return profile.

High-Level Investment Process

Sourcing: The strategy appears to source investment candidates from a broad universe of quality companies across sectors, favoring those with sustainable competitive advantages, strong management teams, and attractive growth runways. Selection: The selection process suggests a preference for companies that can compound earnings growth through cycles while maintaining financial strength and generating robust free cash flows. Valuation discipline is likely applied to avoid overpaying. Construction: Portfolio construction aims to create a diversified portfolio of quality compounders, balancing conviction weights with prudent risk controls. Position sizing may reflect risk-return assessments, with a tilt toward higher-conviction ideas.

Portfolio Holdings Overview

SectoralAllocation

Technology9.12%

Capital Goods19.37%

Services14.7%

Energy & Infra7.42%

Consumers19.23%

Financial Services30.15%

Geographic Allocation

Domestic100%

Top Stock Holdings

CompanySectorAllocation

Larsen & Toubro LtdCapital Goods5.24%

ICICI Bank LtdFinancial Services5.04%

Axis Bank LtdFinancial Services3.78%

HDFC Bank LtdFinancial Services3.65%

Reliance Industries LtdEnergy & Infra3.60%

Mahindra & Mahindra LtdConsumers3.55%

Infosys LtdTechnology3.22%

Bharti Airtel LtdServices2.56%

Cholamandalam Investment and Finance Co LtdFinancial Services2.35%

Glenmark Pharmaceuticals LtdServices2.11%

Fund House Management

The asset management company’s track record, AUM scale, and fund manager credentials.

Fund Manager Track Record

Taher Badshah

Mr. Taher Badshah has experience of 31 years. Manages 42 funds at Invesco Asset Management (India) Private Ltd with an AUM of approximately ₹25,381 Cr Holds a M.M.S degree.

31 years

Combined Team Experience

₹ 25,381 Cr

Assets Under Management

CW Expert Take

Invesco brings international research depth to Indian portfolio management. Their approach balances quantitative screening with fundamental analysis. The fund house is known for conviction-based investing—whether in equity stock selection or credit quality decisions—backed by rigorous debate and research validation.

Firm Overview

Total AUM₹1,39,747.2 Cr

Investment Philosophy & Approach

Disciplined Approach

Invesco employs a disciplined investment approach focused on rigorous research.

Risk Management

Risk management is integral, aiming to construct resilient portfolios.

Long-Term Perspective

Invesco maintains a long-term perspective in capital allocation decisions.

Operational & Regulatory Details

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

Costs and Fees

Total Expense Ratio (TER)1.65%

Exit Load1

Regulatory & Tax Information

INF205K01189

ISIN

DailyDealing Frequency

BSE 500 India TR INRBenchmark

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

STCG | <1Year 20%%

Tax Implications (India)