Invesco Mutual Fund unveils Invesco Medium in 2021

Invesco Mutual Fund unveils Invesco India Medium Duration Fund:

Invesco Mutual Fund announces the launch of its new Invesco India Medium Duration Fund, an open-ended medium-term debt settlement that invests in instruments with a Macaulay portfolio duration between 3 and 4 years.

The Medium Duration Fund of Invesco India aims to generate income by investing in a portfolio of debt and money market securities. The fund is established on the basis of a detailed assessment of the liquidity, interest rate, and credit environment.

More than 75% – 85% of the exposure is in corporate and government bonds with a ‘AAA’ rating (G-series including SDL). To improve portfolio returns, the fund invests 15% – 25% of its net assets in highly selected “AA” corporate bonds and will use its credit rating structure to select these issuers.

The fund will also focus on identifying issuers who need to improve their credit statistics. These selected issuers offer not only the benefit of high accumulation but also the profit potential across markets and credit spread. The fund does not invest in bonds with a lower rating than AA-. The plan will always focus on securities that can deliver optimal returns, with sufficient emphasis on the risk-return characteristics.

Saurabh Nanavati, CEO of Invesco Mutual Fund, said during the launch:

‘Fixed income investments play an important role in any investment portfolio, besides generating stable income, it also helps to reduce the overall portfolio risk as it less volatile and low correlation. with returns on the stock market. ‘

“The launch of new funds is intended to take advantage of current market opportunities, both at the rate of return and in the credit market. If we look at the current fixed income markets, the yield curve weakened during the pandemic; declined due to adequate systemic liquidity and an accommodative monetary policy position, while the longest end of the curve remained higher due to greater fiscal concerns, although it is anchored by the RBI through various instruments, such as the Government Securities Acquisition Program (G- SAP).

With this in mind, we believe that the 3-5-year segment, which offers a high build-up, offers itself an advantage from a risk and return perspective. Medium- to long-term investors with a moderate risk appetite may consider investing in this fund. ‘

The minimum investment amount during the NFO is Rs. 1000 / – and in multiples of Re. 1 / – thereafter. For SIP investments, the minimum demand value is Rs. 1,000 / – per month and Rs. 2,000 / – per quarter and in multiples of Re. 1 thereafter.

No pension tax is levied. The fund is tested against the CRISIL Medium Term Debt Index and is managed by Vikas Garg and Krishna Cheemalapati.

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