Should you invest in the NFO of Invesco Flexi Cap Fund?
You have come to the right place to make the right decision. In this article, you will discover the essentials about this NFO.
Like most leading mutual fund companies, Invesco India launches their own Flexi Cap Fund.
It is an open-ended equity mutual fund scheme with dynamic asset allocation across the market cap.
Table Of Content
What are the Key Features of Invesco Flexi Cap Fund?
- S&P BSE 500 TRI will be the benchmark for this fund.
- Invesco India Flexi Cap Fund comes under the equity: Flexi Cap fund category.
- Fund managers Taher Badshah and Amit Nigam will manage the fund.
- There is no entry load in this scheme.
What Is The Invesco Flexi Cap Fund’s Investment Strategy?
The Invesco Flexi Cap Fund will invest in equities and related securities of large-cap, mid-cap, and small-cap companies.
It will employ both the top-down and bottom-up investment approaches. Thereby finding the stock opportunities across market-caps.
Since the fund will invest across market capitalization, it will have better investment flexibility. The Invesco Flexi Cap Fund can change the weightage given to Large-cap, Mid-cap, and Small-cap allocation in their portfolio anytime based on the market outlook.
Invesco Flexi cap – Fund Managers and AMC:
The fund manager duo to manage the Invesco Flexi Cap Fund are:
- Taher Badshah
- Amit Nigam.
This same duo is also managing the Invesco ESG fund scheme.
Fund Manager: Mr Taher Badshah
He has a Masters in Management Studies with a specialization in finance from Japan.
B.E Electronics Engineering from Mumbai.
Current position: CIO of equities at Invesco Mutual Fund.
Previously worked at:
- Alliance Capital Asset Management
- ICICI Prudential AM(Asset management)
- Kotak Mahindra Investment Advisors
- Motilal Oswal Asset Management HOE (Head of Equities), etc.
Fund Manager: Mr Amit Nigam
He is a PGDBM graduate on finance specialization from IIM Indore.
B.E. Mechanical Engineering from IIT, Roorkee.
Current Position: Fund Manager at Invesco Asset Management
Previously worked at:
- Essel Finance AMC Ltd as head of equities.
- BNP Paribas, Senior Portfolio Manager.
- Navi AMC Ltd
Both the fund managers come with a combined experience of more than 20 years in Indian equity markets.
AMC: Invesco Asset Management Company
It manages more than $1.5 trillion in assets around the globe.
With more than 8,200 employees worldwide, it has a presence in 20 countries with clients from more than 120 countries.
As of December 2021, Invesco India has an AUM of ₹55,000/- crores.
Pros and Cons of Invesco Flexi Cap Fund:
Have you learned enough information about the Invesco Flexi Cap NFO?
Now, let’s analyze the Invesco Flexi Cap fund by comparing it to other existing funds based on their advantages and disadvantages.
Advantages of Invesco Flexicap Fund:
- Invesco Flexi Cap Fund is an open-ended equity fund. This fund aims to generate long-term capital growth; hence it may benefit the long-term investors.
- Invesco Flexi Cap fund will follow a dynamic asset allocation across small, mid and large-cap companies. It may improve the diversification of the fund.
- Investing across market capitalization helps to take advantage of the changing market cycles.
- If you are investing for the long-term and staying the course, this Invesco Flexi Cap Fund has the potential to deliver inflation-beating returns.
Disadvantages of Invesco Flexi Cap Fund:
- Since the Invesco Flexi Cap is an equity fund, consider long-term investments only. And in the short term period, the investment risk will be very high.
- First-time investors, conservative investors, Investors with serious financial goals must consider only the existing, time-tested, and proven Flexi Cap funds with a good track record.
- Based on the outlook, the Invesco Flexi Cap Fund may at times give over weightage to mid-cap and small-cap equities. It makes the fund unsuitable for a conservative investor.
- As a new fund, the Invesco Flexi Cap Fund is yet to create a portfolio. We can analyse the risk and return potential of the fund only with its portfolio. Hence it is a blind risk to invest in this fund during NFO.
- Being an NFO and not having a track record makes it unsuitable for investors who want to take calculated investment risk.
Summary and Takeaways:
To wrap it up, new investors & conservative investors can wait for some time before investing.
It should be until the Invesco Flexi Cap Fund builds a stable portfolio with a good track record.
Aggressive investors or investors who have spare money and want to experiment may try the Invesco Flexi Cap Fund with a minimum investment.
Conservative investors, beginner investors and investors with financial goals can invest in any existing Flexi Cap funds with consistent performance and a good track record.
It is advisable to consult your financial planner before investing in this Invesco Flexi cap fund or any other investment options.
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