Invesco Mutual Fund has announced the launch of the new FoF called ‘Invesco India-Invesco Global Consumer Trends Fund of Fund’. The open-ended Fund of Fund scheme invests in Invesco Global Consumer Trends Fund. The scheme will invest up to 95% to 100% of its assets in shares of Invesco Global Consumer Trends Fund, which is a Luxembourg domiciled Invesco fund that invests 70% to 100% of its assets in a global portfolio of equity securities of companies that aims on discretionary consumer requirements of individuals.
The subscription for New Fund Offering (NFO) is open now and closes on December 18. During the NFO, the minimum amount of investment is Rs. 1000/- and in multiples of Rs. 1/- thereafter. The minimum application amount for SIP investments is Rs. 500/- and in multiples of Re. 1 thereafter.
Saurabh Nanavati, Chief Executive Officer, Invesco Mutual Fund, said that Indian customers consume services from companies like Amazon, Netflix, Uber, Sony, Nintendo but they are not able to invest and benefit from these companies as they are not listed on the stock exchange of India. But more importantly, he said that the investors should think about geographical diversification, which frequently gets fewer spotlights than perhaps it should as different markets perform differently. Geographic diversification not only reduces risk but also presents some unique investment opportunities and can increase portfolio returns.
Nanavati said that the fund is a product of the company’s effort to offer Indian investors a fund, which is unique in the marketplace from an investment perspective. It captures changes in consumer behavior with the emerging trends of digital lifestyles and is not focused on a particular country. Thereby offers a portfolio of a fund with a low degree of overlap and low correlation with available funds. An allocation of the fund could help investors reduce the overall portfolio risk.
Following a flexible approach, the fund focuses on businesses that are expected to benefit from changing discretionary consumer trends, e-commerce, digital media consumption, demographic shifts to material goods experiences or healthier lifestyles, and other durable and non-durable global consumer goods cycles.
