Invesco India Focused Fund Regular Payout of Income Dist cum Capital Wtdrl INF205KA1171

Invesco India Focused Fund earns an Average Process Pillar rating.

The most substantial contributor to the rating is its team of two portfolio managers, which is sufficient to execute the process. Low expenses across its parent firm's funds, whose fees, on average, rank in the middle quintile of their respective category, also strengthen the process. The pattern of low expenses at the firm suggests that it is focused on delivering strong results for investors. 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 subpar success ratio suggests that the firm could do better across its fund lineup.

This strategy is similar to its Focused Fund category peers in terms of market-cap and style exposure. Analyzing additional factors, the fund has held stocks with higher trading volumes compared to Morningstar Category Peers in the past few years. 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 recent months, the strategy was more exposed to the Liquidity factor compared with its Morningstar Category peers as well. This strategy has had more exposure to high-momentum stocks over its peers in recent 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. Compared with category peers, the strategy also had more exposure to the Momentum factor in the most recent month. In addition, this strategy has shown a tendency to hold fewer stocks with high dividend or buyback yields over peers in recent 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. 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 18.2 and 6.9 percentage points, respectively. The sectors with low exposure compared with category peers are financial services and communication services, underweight the average by 15.0 and 6.6 percentage points of assets, respectively. The portfolio is composed of 23 holdings and is quite concentrated. In particular, 61.6% of the strategy's assets are housed within the top 10 holdings, compared to the category average of 33.9%. And in closing, in terms of portfolio turnover, on a year-over-year basis, 101% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.