IInvesco India Financial Services FundDirect Plan Payout of Income Dist cum Capital Wtdrl INF205K01KW8

Invesco India Financial Services earns an Above Average Process Pillar rating.

The main driver of the rating is the fund's strong long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the managers have shown skill in their allocation of risk. The process is limited by its parent firm's disappointing risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.8 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

This strategy leans toward smaller, higher-growth companies than its average peer in the Sector - Financial Services Morningstar Category. Analyzing additional factors, this strategy has continually had exposure to high-momentum stocks compared with Morningstar Category peers in the last 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 exhibited a tilt toward high-volatility stocks over these years, meaning it has invested in companies that have a higher historical standard deviation of returns. Such stocks tend to rise faster and fall harder than the broad market. High-volatility exposure contributes to stronger performance during bull markets, but often at the cost of losing more during downturns. Compared with category peers, the strategy also had more exposure to the Volatility factor in the most recent month. In addition, this strategy has favored high-quality stocks compared to peers over the years, which could be a good option for downside risk protection. Such holdings could cause it to trail peers during economic booms, but help it better endure busts. In this month, the strategy also had more exposure to the Quality 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 has allocations in its top two sectors, technology and healthcare, that are similar to the category. The sectors with low exposure compared with category peers are financial services and industrials; however, the allocations are similar to the category. The portfolio is composed of 33 holdings and is similarly diversified as peers, with 70.0% of portfolio assets concentrated within the top 10 holdings. And finally, in terms of portfolio turnover, this fund trades less regularly than the typical peer in its category, which may result in a lower cost to investors.