Invesco India Focused Fund Direct Growth INF205KA1213

Invesco India Focused Fund earns an Average Process Pillar rating.

The main contributor to the rating is its team of two portfolio managers, which is sufficient to execute the process. The stability of talent across its parent firm also supports the rating. The firm's asset-weighted manager tenure of 13 years demonstrates its ability to retain portfolio managers. However, 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 2.7 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

This strategy owns more growth stocks than its peers in the Focused Fund Morningstar Category. But in terms of market capitalization, it is on par with peers. Looking at additional factor exposure, this strategy has continually had exposure to high-momentum stocks compared with Morningstar Category peers in the last few years. Momentum approaches bet that rising stocks will continue to rise and that lagging stocks will continue to lag. 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 an overweight bias to the volatility factor over these years, meaning it has owned 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. Furthermore, this strategy has leaned toward low-yield stocks over recent years, holding fewer companies with high dividend or buyback yields. Its preference for stocks with lower yields may well lead to a growthier portfolio. However, growth stocks court additional risks if their forecasts do not come to fruition and are often more volatile than companies with stable dividends. In recent months, the strategy also had less Yield factor exposure than 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 industrials and technology relative to the category average by 23.2 and 6.6 percentage points, respectively. The sectors with low exposure compared with category peers are financial services and communication services, underweight the average by 13.8 and 6.6 percentage points of assets, respectively. The strategy owns 23 securities and is quite concentrated. In particular, 62.2% of the strategy's assets are housed within the top 10 holdings, compared to the category’s 33.6% average.