Invesco India Manufacturing Fund NFO: Review, Date & NAV

Invesco India Manufacturing Fund-NFO Complete Overview

The Invesco India Manufacturing Fund by Invesco Mutual Fund (Fund House) under its AMC Invesco Asset Management (India) Private Limited having AUM of Rs.87668.21 crore is an open-ended scheme based on a manufacturing theme that was introduced on July 25, 2024. The Scheme seeks to provide capital growth through a diverse portfolio of equity and equity-related instruments based on a manufacturing theme. The investment window is open from July 25 to August 08, 2024, with a starting price of Rs.1000 and in multiples of Rs.1 with an Exit Load of 0.50% if units are redeemed within 90 days of the allotment.

The scheme will invest 80-100% of its units in equity and equity-related securities of businesses in manufacturing themes, 0-20% in equity-related instruments of companies other than manufacturing themes, 0-20% in debt and money market instruments, and 0-10% in REITs and InvITs units. The scheme is suitable for investors who want to achieve capital appreciation over time and seeking to invest mostly in equities and equity-related instruments of businesses with a manufacturing theme. The scheme is a very high-risk scheme. There is no assurance that the scheme's investment goal will be met. 

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Fund Overview

The Invesco India Manufacturing Fund-NFO has set the minimum subscription amount at Rs.1000 and in multiples of Rs.1 thereof with the stamp duty of 0.005% (From July 1st, 2020).

Start Date	25 July 2024
End Date	08 August 2024
Allotment Date / Subscription Date	Within 5 business days after the end date of the NFO.
VRO Rating	-
Expense Ratio	Nil
Exit Load	0.50% if redeemed in 3 months
AUM	Rs.87668.21 crore
Lock-In	No Lockin
Stamp Duty	0.005% (From July 1st 2020)
Benchmark	Nifty India Manufacturing TRI
Min. Investment	Rs.1000
Risk	Very High
Short-Term Capital Gains (STCG)	Returns taxed at 20% if you redeem before 1 year
Long-Term Capital Gains (LTCG)	After 1 year, pay an LTCG Tax of 12.5% on returns of Rs.1.25 lac+ in a financial year.

 

How To Invest In The NFO After The Closure Date?

If you have missed participating in the NFO and now want to invest in the same Scheme on a continuous basis, then within 5 business days after the closure date of the NFO; you can participate directly in the Mutual Fund by spending at the same price of Rs.1000 and in multiples of Rs.1 thereof; by logging on to your Demat Account or directly with the AMC and search for “Invesco India Manufacturing Fund” or simply touch the “Click Here” button below.

 

The Objective Of The Fund

The Scheme seeks to provide capital growth through a diverse portfolio of equity and equity-related instruments based on a manufacturing theme. Nevertheless, there can be no assurance or guarantee that the scheme's investment goals will be met.

Asset Allocation (% Of Net Assets) Of The Scheme's Portfolio Will Be As Follows:

Types of Instruments	Minimum Allocation (% of Net Assets)	Maximum Allocation (% of Net Assets)
Equity and equity-related securities of businesses in manufacturing themes	80	100
Equity and equity-related instruments of companies other than manufacturing themes.	0	20
Debt And Money Market Instruments.	0	20
REITs and InvITs units.	0	10

 

Peers Of Invesco India Manufacturing Fund

Scheme	1Y Return (%)	AUM (Cr)
ICICI Prudential Manufacturing Fund	65.33	5,942.57
ABSL Manufacturing Equity	47.78	1,108.36
Kotak Manufacture In India Fund	52.32	2,337.49
Axis India Manufacturing	-	5,193.03

Since this scheme is a new scheme, hence no comparable data of its performance with its peers is available.

 

Risk Factors In Such Funds

• Equity and equity-related instruments are inherently volatile, with daily price changes caused by macroeconomic and microeconomic factors. The value of equity and equity-related instruments may fluctuate due to factors affecting the securities markets such as price volatility, volume traded, interest rates, currency exchange rates, changes in government laws/policies, etc, which may harm individual securities, a specific sector, or all sectors. As a result, the NAV of Units issued under the Scheme may be lowered.

• The scheme will only make investments in the equity and equity-related instruments of businesses with a manufacturing focus. Risks related to manufacturing enterprises may impact the Scheme; hence, a significant concentration risk is anticipated. The expansion and effectiveness of the nation's manufacturing sector would have an impact on the success of the businesses that make up this scheme's investment universe.

• There could not be a live market for bonds that might lead to a failure to establish liquidity and lower market prices for the Bonds, which would have negative effects.

• The Tier I and Tier II bonds are not guaranteed not to be downgraded

 

Past Performance Of Equity / Thematic Funds

Equity / Thematic Funds	NAV (Rs)	Annualised Returns (%)	Return / Risk
Aditya Birla Sun Life Manufacturing Equity Fund-Regular Plan	32.69	46.34	Moderate
Kotak Manufacture in India Fund-Regular Plan	19.3	49.1	Moderate
Quant Manufacturing Fund Regular	17.14	-	Very High Risk

 

Invesco India Manufacturing Fund NFO-Who Can Invest?

This Fund is ideal for those who want to tolerate a high risk in their investment to achieve capital appreciation over time and seeking to invest mostly in equities and equity-related instruments of businesses with a manufacturing theme.

 

Invesco India Manufacturing Fund NFO-Growth Fund Managers:

• Mr. Amit Ganatra 

• Mr. Dhimant Kothari

Conclusion

Investors looking to diversify their portfolios through investments to attain capital appreciation over time by investing in equity-related instruments of businesses with a manufacturing theme. The scheme is a new one and no past performance data is available. Always assess your Financial Goals, Risk tolerance, time horizon, etc. before making an investment decision. 

Disclaimer: This NFO analysis is provided solely for informative reasons and should not be construed as investment advice. Always conduct research and talk with a financial advisor before investing.