Invesco India Smallcap Fund Regular Reinvestment of Income Dist cum Capital Wtdrl INF205K014T1

Invesco India Smallcap Fund earns an Average Process Pillar rating.

The leading factor in the rating is the experience of the management team, which averages 14 years at this fund. Excellent risk-adjusted performance also contributes to the process. This can be seen in the fund's five-year alpha calculated relative to the category index, which suggests that the managers have shown skill in their allocation of risk. 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 beat their respective category's median return for the period. The parent's subpar success ratio suggests that the firm could do better across its fund lineup.

This strategy has tended to hold more growth stocks than others in the Small-Cap Morningstar Category. But in terms of market capitalization, it is on par with peers. 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 also been exposed to liquid stocks during these years. Such stocks may have less potential upside than illiquid holdings, but they are easier to trade during market downturns. Compared with category peers, the strategy also had more exposure to the Liquidity factor in the most recent month. Additionally, the managers have consistently taken on more risk, demonstrated by higher volatility exposure than peers. This contributes to 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 is overweight in healthcare and financial services relative to the category average by 8.7 and 7.3 percentage points, respectively. The sectors with low exposure compared with category peers are consumer cyclical and basic materials, underweight the average by 5.7 and 5.6 percentage points of assets, respectively. The strategy owns 79 securities and is quite concentrated. More concretely, 26.6% of the portfolio's assets are housed within the top 10 holdings, versus the typical peer's 13.7%. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 43% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.