Mutual Fund News : Invesco Mutual Fund Launches Invesco India Medium Duration Fund

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Invesco Mutual Fund has launched Invesco India Medium Duration Fund.

It is an open-ended medium term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 3 years and 4 years.

Accordingly, investment objective of the Scheme is to generate income by investing in a portfolio of Debt and Money Market Instruments such that the Macaulay duration of the portfolio is between 3 years and 4 years.

Invesco India Medium Duration Fund is mandated to invest 0% to 100% of its assets in Debt (including government securities) & Money market instruments. It may also invest 0% to 10% of its assets in Units issued by REITs and InvITs.  

The Macaulay Duration of the portfolio shall be between 3 years to 4 years. However, the Fund Manager, in the interest of investors, may reduce the portfolio duration of the Scheme upto 1 year in case he has views on the interest rate movements in the light of anticipated adverse situation.

As per the Scheme Information Document (SID), Invesco India Medium Duration Fund will invest in a portfolio of debt and money market instruments with an aim to generate income from active credit spread management, while maintaining portfolio Macaulay duration between 3-4 years under normal circumstances.

The Scheme will identify mispriced assets in the market to generate additional returns. At all times, the Scheme will target securities which can offer optimal level of yields/returns, while giving due emphasis to its risk-reward characteristics.

The investments will be made following a detailed assessment of the liquidity, rates and the state of the credit market. The allocation will largely be in the corporate debt and money market segment of the curve and in the sovereign segment of the market.

The Scheme will take controlled and selective exposure to high credit quality investments from the list approved by the proprietary credit assessment model (from time to time), which is a credit scoring model targeted to identify the credit strength of the borrower.

The management team will also keep tab of the rate environment, liquidity, macroeconomic parameters and use various portfolio construction levers of instrument, spreads, security, liquidity, diversification, duration and credit quality to identify the appropriateness of any position in the portfolio.

Invesco India Medium Duration Fund’s performance will be benchmarked against its performance to CRISIL Medium Term Debt Index.

It will be managed by Mr Vikas Garg and Mr Krishna Cheemalapati.

The NFO opens for subscription on June 29, 2021 and closes on July 13, 2021. The scheme will reopen for continuous Sale and Repurchase within 5 business days from the date of allotment.  

The fund’s NAV is priced at Rs 1000 per unit during the NFO period. The minimum subscription amount is Rs 1,000 and in multiples of Re 1 thereafter.

The fund offers Regular Plan and Direct Plan having Growth Option and Income Distribution Cum Capital Withdrawal Option (with Quarterly/ Discretionary Payout, and Quarterly/ Discretionary Reinvestment sub-options).