Budget 2020

Invesco India NFO: SIP in NFO of Invesco Global Consumer Trends FOF

MUMBAI: Investors looking to bet on the ongoing digital revolution in consumer spending could consider the New Fund Offer of Invesco India – Invesco Global Consumer Trends Fund of Fund. But, investing lumpsum in this product could be avoided at this juncture given the run up in shares of many of such companies. Wealth advisors said investors could opt for the Systematic Investment Plan (SIP) route till share prices correct.

The NFO is currently open and closes on December 18. The scheme, a feeder fund, will invest Invesco Global Consumer Trends Fund, a 22-year-old fund with assets of $2.6 billion that invests 70% – 100% of its assets in consumer discretionary companies. Some of its top holdings are Amazon, Alibaba, Penn National Gaming, Lowes and Caesar Entertainment, Farfetch and Nintendo. Though the portfolio holds many big global names, the run up in their share prices requires a spread out investment in the fund

“The fund has a good track record and aims to capture new and emerging trends. Such companies have rewarded investors well and merit being part of portfolios, but given that US equities have run up a lot, the SIP route would be better here,” said S Shankar, CFP, Credo Capital.

Over the last 10 years, the fund has returned 16.52% in dollar terms, on a compounded basis while 22.62% in rupee terms.

Sources said weal desks of foreign banks have recommended this product to the clients given the strong track record, investment in emerging future themes and low overlap with Nasdaq 100.

“It is a differentiated offering and should be a part of investors’ global equity allocation of 10-15%,” said Vijay Kuppa, Founder, Orowealth.