Invesco Mutual Fund has launched the Invesco India Manufacturing Fund. This new fund aims to leverage the growth potential within India's manufacturing sector.
Invesco Mutual Fund launches Invesco India Manufacturing Fund today, and NFO closes on August 8. Check the features of this fund.
Invesco Mutual Fund has launched the Invesco India Manufacturing Fund. This new fund aims to leverage the growth potential within India's manufacturing sector.
The New Fund Offer runs from July 25, 2024, to August 8, 2024. The minimum lump sum amount is Rs. 1,000 and in multiples of Rs. 1 thereafter. An exit load of 0.5 per cent is imposed if units are redeemed on or before 3 months from the date of allotment.
The fund will invest 80 to 100 per cent of its portfolio in equity & equity-related instruments of companies following the manufacturing theme. The fund will invest across market capitalization in a diversified portfolio of 50 to 60 stocks. The fund will choose globally competitive companies that have tailwinds such as fast-growing demand, reduced input costs or are beneficiaries of favourable policies like Production Linked Incentive (PLI).
As India is anticipated to grow 2.5-fold into a USD 9 trillion economy by 2034, the global demand for diversifying supply chains and identifying new manufacturing hubs has created a prime opportunity for India. Notably, global giants including Apple, Samsung, Foxconn, and Xiaomi have already relocated their manufacturing operations to India. i
Further Invesco India Manufacturing Fund is designed to capitalise on these factors according to the fund house.
The manufacturing environment will benefit from stable inflation, interest rates, and supportive government policies like Make in India.
Competitive Edge: India possesses strengths in labour, energy, land, capital, and entrepreneurship, factors that can support a thriving manufacturing industry.
Government Support: The government is implementing a range of policies, incentives, and subsidies, and has lowered corporate tax rates to position India as a global manufacturing hub. Both Central and State governments are increasing capital expenditures to boost the manufacturing sector.
Amit Ganatra, Head of Equities & Fund Manager at Invesco Mutual Fund, said, “ With a large pool of entrepreneurial talent and substantial export potential, the manufacturing sector offers immense opportunities for investors. Initiatives like ‘Make in India’ and infrastructure development, along with competitive advantages in labour, energy, land, capital, and entrepreneurship will further bolster this sector.”