Invesco India largecap Fund Growth INF205K01304

Invesco India largecap earns a Below Average Process Pillar rating.

The process benefits from the experience of the management team, which averages 12 years at this fund. However, the rating is held back 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 beat their respective category's median return for the period. The parent's modest success ratio suggests that the firm could do better across its fund lineup. The parent firm's disappointing risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 2.7 stars, also limits the process. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

This strategy skews toward smaller, higher-growth companies compared with its average peer in the Large-Cap Morningstar Category. Examining additional factor exposure, this strategy has consistently had less exposure to yield compared with its Morningstar Category peers during recent years. This is demonstrated by the portfolio's low exposure to dividends or buybacks. While companies with high yields provide steady income payments, they may cut payouts if their earnings decline. In the latest month, the strategy was also less exposed to the Yield factor compared with Morningstar Category peers. This strategy has had more exposure to high-momentum stocks over its peers in recent 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. 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 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 consumer cyclical and consumer defensive relative to the category average by 4.5 and 3.0 percentage points, respectively. The sectors with low exposure compared with category peers are basic materials and financial services, underweight the average by 4.4 and 2.9 percentage points of assets, respectively. The portfolio is positioned across 49 holdings and is less top-heavy than peers. Specifically, 46.7% of the strategy's assets are concentrated within the top 10 fund holdings, compared to the typical peer's 51.8%. And finally, in terms of portfolio turnover, looking at year-over-year movements, 84% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.