Invesco India Flexi Cap Fund Regular Reinvestment Inc Dist cum Cap Wdrl INF205KA1478

Invesco India Flexi Cap Fund earns an Average Process Pillar rating.

The leading factor in the rating is the experience of the management team, which averages 13 years at this fund. The size of the portfolio management team also contributes to the process. With two portfolio managers, the fund is reasonably well-resourced. 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 relatively low success ratio suggests that the firm could do better across its fund lineup.

This strategy tends to hold smaller, higher-growth companies compared with its average peer in the Flexi Cap Morningstar Category. Examining additional factor exposure, this strategy has continually had exposure to high-momentum stocks compared with Morningstar Category peers in the last few 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. In recent months, the strategy was more exposed to the Momentum factor compared with its Morningstar Category peers as well. This strategy has also leaned away from the stocks of companies with high dividend or buyback yields over these 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. Similarly, in recent months, the strategy also had less exposure to the Yield factor than peers. In addition, this strategy has exhibited a tilt toward higher-volatility stocks in these years, meaning companies that have a higher historical standard deviation of returns compared with peers. This orientation tends to pay off most prominently when markets are hot. In this month, the strategy also had more exposure to the Volatility 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 consumer cyclical by 4.8 percentage points in terms of assets compared with the category average, and its healthcare allocation is similar to the category. The sectors with low exposure compared with category peers are financial services and consumer defensive, underweight the average by 4.7 and 2.8 percentage points of assets, respectively. The strategy owns 62 securities and its assets are more dispersed than peers in the category. In particular, 35.5% of the portfolio's assets are concentrated in the top 10 fund holdings, as opposed to the category’s 39.5% average. And in closing, in terms of portfolio turnover, on a year-over-year basis, 116% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.