Archive for the ‘ Mutual Fund ’ Category

Invesco Global Consumer Trends – FOF – should you invest ?

Friday, December 11th, 2020

Invesco India Mutual fund launches a Fund of Fund offer for Invesco India Global Consumer Trends.

The Fund will invest in Invesco Global Consumer Trends fund, a Luxembourg domiciled Invesco Fund, which invests in a global portfolio of equities focussed on discretionary consumer needs of Individuals.

The underlying fund offers the investors exposure to global companies that may benefit from changing consumer trends, over the long term.  The fund has invested currently in a wide range of investment themes like e-commerce, entertainment, internet services, autonomous driving to active lifestyles.

The fund managers follow a continuous process of identifying companies with high-quality earnings growth and potential for favourable capital appreciation by gaining share in discretionary demand.

Do read my earlier article on why you should invest in a global fund here.

Let’s understand and review the underlying fund: Invesco Global Consumer Trends fund

AUM : USD 2.76 Billion – INR 20,416.60 Crores.

Benchmark: MSCI World Consumer Discretionary Index – Net Dividend

Fund Domiciled: Luxembourg

Portfolio Managers –  Ido Cohen (Lead PM since May 2011) & Juan Hartsfield, CFA, January 2009

Other Highlights:

1. Flexible approach – The fund is Flexible with a concentration towards companies that are expected to profit from changing consumer discretionary trends: currently eCommerce, digital media consumption, demographic shifts towards experiences over material goods or towards healthier lifestyles, and global consumer durable and non-durable goods cycles.

2. Rigorous investment approach – The team’s investment approach is a bottom-up, research-driven process that enables them to narrow the field of stocks to identify those companies best able to capitalize on key themes driving consumer spending.

3. Experienced team – The fund managers of underlying fund, Ido Cohen (lead) and Juan Hartsfield offer clients an average of 22 years’ fund management

Performance of the fund

Invesco Global Consumer Trends fund - Performance in USD

Fund C- ACC Shares
1 year35.18%19.35%
3 years14.88%13.04%
5 years16.12%11.05%
10 years16.51%12.83%
Since Inception9.57%6.49%

Invesco Global Consumer Trends fund - Performance in INR

Fund C-Acc Shares
1 year41.23%24.70%
3 years20.16%18.23%
5 years19.08%13.89%
10 years22.62%18.75%
Since Inception12.37%9.21%


Top 10 Holdings as on 31st October 2020

Top Holdings
% of Net Assets
Alibaba 7.9
Penn National Gaming 6.4
Lowe's 3.9
Caesars Entertainment 3.8
SEA 3.7 3.5
Farfetch 3.1
Nintendo 3.0
Activision Blizzard 2.7



Should you invest in the NFO ?

Investing Globally not only provides you the much needed access to the business which are truly global but also adds diversification that’s neccesary to build a healthy Investment portfolio. The fund gives you the access to invest in the successful companies which are at the forefront of the changing consumer trends.

The fund remains dominated by digital lifestyle themes, which currently represent majority of the portfolio.

Everything is changing during the tough Covid times, i.e. the way we shop, travel, consume entertainment and connecting with the world through social media…

What we are witnessing is a generational shift in consumer behaviors and most of these trends are here to stay.

We Recomend Investment in the Fund for a long term, and benefit from consumer trends driven by changes in standards of living, demographics, connectivity and digital lifestyle.

Recommended Mutual Funds – Large Cap

Tuesday, February 18th, 2014

Equity is a powerful asset class that offers potential for long term wealth generation. However this potential is only realized for those investors that are able to maintain a diligent and disciplined approach towards it. The Investors should also select the schemes wisely wherein the fund managers are aligned in their long term approach to risk management and wealth creation.

Large Cap Equity Mutual Funds make a base for your equity portfolio and should weigh atleast 35-40% of your equity portfolio.

BIA Capital Recommends  following Large Cap Funds for your Mutual Fund Portfolio.

  Return as on 11-02-2014 (Returns above one year are CAGR) Ratios based on 3 years performance
Name of the Funds AUM (in crs.) as on 31-12-2013  YTD  1 month  3 month  1 year  3 year  5 years  10 year  Beta  Alpha  Sharpe Ratio
ICICI Prudential Focused Bluechip Equity Fund 4,705 -2.22% -0.75% 1.85% 7.48% 8.94% 22.36% 0.85 0.34 0.451
Birla Sl Frontline Equity Fund 3,586 -3.32% -1.59% 1.86% 5.41% 8.25% 20.59% 17.90% 0.90 0.36 0.38
Axis Equity Fund 603 -4.38% -2.67% 0.23% 7.64% 8.85% 0.83 0.35 0.47
Franklin India Bluechip Fund 4,958 -3.35% -1.41% 1.07% 0.28% 5.45% 19.17% 15.97% 0.87 0.08 0.273
Edelweiss Diversified Growth Equity Top 100 Fund 22 -4.10% -2.29% 0.83% 7.62% 9.39% 0.82 0.35 0.464

A brief note on the recommended funds :


It’s not that hard to be a millionaire..take the first step to wealth

Thursday, January 30th, 2014

Today’s article reminds of the following quote :

The First step is always the hardest, but it’s the only way to reach the second step. – Susan Gale

Being a Millionaire, a multi-millionaire or in the Indian Context being a Crorepati is always desirable. It is achievable too if you have disciplined savings approach.

Let’s analyse how one can achieve this wealth accumulation goal. As we know The First Step is always hardest – Accumulating the First Crore is hardest but later on the your savings have a multiplying effect.


Park your surplus Funds with Liquid/Ultra short term funds

Wednesday, January 22nd, 2014

Save more than others

If you have surplus funds in hand, which you do not want to lock-in with Fixed Deposits, we have a solution for you. The funds can be parked in Liquid/ Ultra short term funds instead of holding those funds in the savings or current account with the bank.

In the current high interest scenario, the liquid funds can do far better than your savings/current account. The Average return of a Liquid Fund has been close to 9% p.a. , which is equivalent to return from a Fixed Deposit.


Identifying Opportunities in the Debt Mutual Funds

Tuesday, January 21st, 2014

Fixed Income Investments serve to diversify your portfolio, help to stabilise your over all return and create a predictable income stream to support your desired lifestyle.

Bonds can provide excellent Risk-adjusted returns. Let’s evaluate where we should invest in the current market scenario.

  • The 10 year G-sec Yield has cooled off to 8.52% after moving above 9% last month.
  • Largely led by primary articles, Inflation at both wholesale and consumer levels have shown a large down-tick.
  • On Account of fall in food inflation the Retail inflation dropped to 9.87% in December.
  • WPI fell to 6.16% the lowest level of Inflation in last 5 months.
  • The fall in inflation is in line with RBI expectations.
  • For the month of January the inflation number may come even softer driven by further cut in agri inflation and base effect.
  • The Inflation data coupled with weak demand and possible fiscal cuts may signal a plateau for interest rates.Please go through the movement of Yields in last few days.


Accrual v/s Duration Strategy – Where to Invest ??

Thursday, September 5th, 2013

Debt Fund Investors are usually confused as whether to go for Duration-based funds or funds with Accrual Strategy. Let’s understand the basic rationale of the strategies.

Duration Based Strategy:

The funds which follow the Duration based strategy invest in long term bonds and benefit from the fall in interest rates. They earn from capital appreciation along with the coupon of the bond. These funds are exposed to interest rate risk and if the interest rates move up these funds bear capital losses.

All long term Income and Gilt Funds follow the duration based strategy.

These funds are advisable for investors who can ride with the volatility associated with the fund.  The Funds can generate better return in a time when the interest rates are set to move downwards.

Accrual Based Strategy:

The funds which follow accrual strategy generally buy short term instruments and prefer to hold till maturity, this reduces the interest rate risk. Corporate bond funds invest in high yielding corporate bonds which have a shorter maturity period.

FMPs, Ultra Short term bond funds and Short term bond funds follow this strategy.

If an investor needs a steady return from his Debt portfolio and is not ready to take higher risk he should invest in Accrual based funds.

An Investor can also adopt a combination of both the type of funds in his debt portfolio as per his risk profile.

How to decide

Both the strategies have their own merits and have different risk reward proposition for the investor.

Let’s compare the performance of Income Funds of both the categories:

Duration vs accrual


Looking to the returns of last one year we find that both the categories have earned similar returns, but as we move to the most volatile period i.e from 15th July 2013 till date we find the Accrual funds have flared well compared to the duration ones.

The Accrual funds benefited because of  two reasons, first they  generally carry a shorter maturity of around 1.5 to 3 years and interest rates in India at the shorter end are quite attractive compared to longer end secondly these funds have not faced redemption pressures as the investors were restrained by heavy exit load in some of the funds.

The current scenario depicts a risk reward in favour of the shorter end of the curve. The RBI shocker has disproportionately impacted the short term curve and we feel the investor should choose a mix of funds few with extreme shorter maturities and few with longer maturities. The strategy will effectively give a balanced duration to the portfolio and capture the opportunities given the inverse yield curve.


Opportunity in the Troubled Times

Monday, August 26th, 2013

Time to Invest in Debt Funds.

Recently the RBI imposed Liquidity tightening measures to curb Rupee Volatility. The liquidity tightening has resulted into higher bond yields. The shorter term as well as longer term interest rates have spiked up. This provides us an entry point to Invest in Debt Funds.