Invesco Asset Management Company was established on May 20, 2005. The firm is dedicated to delivering financial solutions that help investors achieve their long-term goals. The company has a global presence and is committed to sustainable business practices.
As of June 2024, it manages an impressive Average Asset Under Management (AUM) of Rs 81,267.43 crores. Let’s see if you should invest in a mutual fund offered by Invesco.
Pros of Investing in Invesco AMC Schemes
Here are the pros of investing in Invesco mutual funds.
1. Competitive Returns
Invesco schemes are noted for their returns. For example, their thematic scheme, Invesco India Infrastructure Fund, stands out with a 72.11% annualized return in a year. Similarly, their balanced scheme, Invesco India Aggressive Hybrid Fund, delivered a solid 30.98% one-year return. Also, their debt category scheme, Invesco India Credit Risk Fund, has offered higher returns than traditional fixed-income investments.
2. Professional Management & Liquidity
Invesco has a client-centric approach. Each scheme they offer is overseen by a dedicated management team that ensures decent returns with minimal risk. The team also leverages Invesco’s global resources and expertise to manage funds effectively during economic downturns.
Invesco schemes are noted for their liquidity, especially open-ended ones. They allow you to convert your fund units into cash with ease. Once you proceed with the redemption, you receive funds in your account in the next few business days.
3. Different Fund Options
Invesco offers size-based funds as investment options categorized by company size—for example, Invesco India Small Cap Funds target companies with smaller market values but high growth potential. Conversely, Invesco India Large Cap Funds invest in well-established, large companies known for stability and consistent returns. Invesco also offers an equity scheme that adopts a contrarian investment strategy.
Cons of Investing in Invesco AMC Schemes
Let’s understand the cons now.
1. Market Risk
While the Invesco Mutual Funds offer potential for higher returns, it carries market risks similar to stock investments. That means fund value can fluctuate. Additionally, the fund house never guarantees returns or capital safety.
2. Management Risk
Most Invesco Schemes are actively managed. That means a fund’s success relies on a fund manager’s expertise to outperform the market. However, this approach can lead to inconsistent performance if the manager fails to make timely and active decisions. Tracking the fund manager’s record and remaining aware of the inherent unpredictability of active management is recommended.
3. Different Charges
Invesco’s expense ratios represent the annual cost of owning a mutual fund. Lower ratios mean fewer costs to investors, while higher ones can eat into returns. Additionally, Invesco may charge fees like exit loads, which are costs incurred when selling shares within a certain period.
Conclusion
Investing in Invesco schemes can be a good option for those looking for diversified exposure to the Indian market, especially in the infrastructure sector. The professional management and the potential for higher returns are some of the reasons for choosing this AMC. However, it is important to stay up to date on the risks involved, such as market volatility and the impact of expense ratios on returns.
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