Invesco India Mid Cap Fund Direct Plan Reinvestment of Income Dist cum Capital Wtdrl INF205K01MU8

Invesco India Mid Cap earns an Average Process Pillar rating.

The leading factor in the rating is the fund's excellent 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 contributes to 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 tends to hold smaller, more growth-oriented 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. 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. Given the high trading volume of holdings, this fund also holds highly liquid assets. More-liquid assets are easier to buy and sell without adversely moving their prices and tend to provide some ballast during market selloffs. They also are easier to sell to meet redemptions if a host of investors decide to leave the fund in a short period of time. 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 top-heavy. Of the strategy's assets, 37.8% are concentrated within the top 10 holdings, compared to the typical peer's 23.2%. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 87% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.