Invesco India Mid Cap Fund Payout of Income Dist cum Capital Wtdrl INF205K01BD7

Invesco India Mid Cap earns an Average Process Pillar rating.

The predominant contributor to the rating is the fund's strong long-term risk-adjusted performance. This can be seen in its ten-year alpha calculated relative to the category average, which suggests that the managers have shown skill in their allocation of risk. Management team experience, which averages 15 years at this fund, also strengthens 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 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 leans toward smaller, higher-growth companies compared with its average peer in the Mid-Cap Morningstar Category. Examining additional factor exposure, this strategy has consistently had exposure to high-momentum stocks compared with Morningstar Category peers over the past few 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. 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. This is demonstrated by the portfolio's low exposure to dividends or buybacks. While companies with high yields provide consistent income payments, they may cut payouts if their earnings decline. 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 liquid assets, evidenced by consistently holding companies with relatively higher trading volumes. More-liquid assets contribute to more-flexible exit strategies without price changes and tend to be a ballast during market selloffs. For example, if the portfolio faces successive redemptions in a short period of time, it will be less likely to suffer from a significant loss. In this month, the strategy also had more exposure to the Liquidity 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 healthcare and real estate relative to the category average by 5.5 and 4.5 percentage points, respectively. The sectors with low exposure compared with category peers are industrials and consumer defensive, underweight the average by 5.4 and 3.1 percentage points of assets, respectively. The portfolio is positioned across 49 holdings and is relatively concentrated. Specifically, 37.8% of the fund’s assets are housed within the top 10 holdings, as opposed to the category’s 23.2% average. And in closing, in terms of portfolio turnover, on a year-over-year basis, 87% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.