Invesco India Financial Services Fund Direct Plan Reinvestment of Income Dist cum Capital Wtdrwl INF205K01KX6

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

The most significant contributor to 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 average, which suggests that the managers have shown skill in their allocation of risk. The stability of the management team also supports the rating. Specifically, the fund has not seen a manager change in the last five years. However, the process is limited by its parent firm's inferior risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.7 stars. 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 than its average peer in the Sector - Financial Services 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 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 also has had a defensive tilt, with exposure to higher-quality stocks compared with peers in recent years. Though it may trail peers during an economic boom, this orientation contributes to helping it weather periods of economic stress better. Compared with category peers, the strategy also had more exposure to the Quality factor in the most recent month. 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 is a higher-risk, higher-reward approach. 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 has allocations in its top two sectors, healthcare and technology, that are similar to the category. The sectors with low exposure compared with category peers are financial services and energy; however, the allocations are similar to the category. The strategy owns 35 securities and its assets are more dispersed than peers in the category. In particular, 69.3% of the fund’s assets are concentrated in the top 10 fund holdings, as opposed to the typical peer's 73.1%.