Invesco India ESG Equity Fund NFO
Invesco Mutual Fund has announced the launch of the Invesco India ESG Equity Fund. The scheme would be investing in companies that adopt the theme of Environment, Social, and Governance (ESG).
The New Fund Offer (NFO) starts on 26th February 2021 and will end on 12th March 2021. The scheme will reopen for continuous sale and purchase within 5 business days of allotment.
Investment Objective
The investment objective of the scheme is to provide long-term capital appreciation by investing in a diversified portfolio of equity and equity-related stocks which are selected on the basis of the Environmental, Social, and Corporate Governance criteria (ESG).
What is ESG Investing?
ESG investing is making investments while incorporating other non-financial parameters like Environment, Social & Corporate Governance along with the financial parameters. Also known as sustainable investing, ESG investing encourages investments in those companies which follow the ESG theme wherein they take care of the following things:
Environmental empathy: Duty & responsibility towards the environment like making use of renewable energy, conducting waste management activities, etc.
Social Responsibility: Relationships with internal & external stakeholders. It can include things like making a working conditions policy, discrimination policy, etc.
Corporate Governance: Efficiency, conduct & practices of the management like WhistleBlower programs, Board diversity, etc.
Features
- The fund will invest its assets primarily in large-cap stocks. It will have limited exposure to mid-cap and small-cap stocks with a combined allocation of up to 35 of the overall portfolio.
- Fund will follow the bottom-up approach for the selection of stocks. The portfolio of the fund will be a blend of growth and value stocks.
- The weighted average ESG risk score of the portfolio will be maintained at <=1.502.
- The fund will be having approximately 30-40 stocks in its portfolio.
Why invest in Invesco India ESG Equity Fund?
- Invesco sees ESG funds as a vehicle that invests in those companies which are helping in making the world a better place.
- The fund has deep commitments for running the ESG anchored portfolios by its actions involving investment, engagement, and divestment.
- Fund has a belief that the ESG considerations represent material economic information which explains the company’s future beyond what can be deciphered through analyzing typical financial statements.
Suitability
This scheme is suitable for investors who are -
- Interested in Long term wealth creation.
- Interested in investing in a diversified basket of stocks determined on the basis of the Environmental, Social, and Governance criteria (ESG).
- Recommend for investing with a time horizon of 5+ years.
Assets Allocation Pattern-
| Instruments | Minimum % of total assets (Indicative) | Maximum % of total assets (Indicative) | Risk Profile |
| Equity & Equity related securities of companies as per ESG criteria | 80 | 100 | High |
| Equity and Equity related securities other than mentioned above | 0 | 20 | High |
| Debt and Money market instruments and units of other overnight & liquid schemes of Invesco Mutual Fund | 0 | 20 | Low to Moderate |
| Units that are issued by REITs and INVITs | 0 | 10 | Moderate to High |
About the scheme-
| Name of the fund | Invesco India ESG Equity Fund |
| Fund launched by | Invesco Mutual Fund |
| Asset Management Company | Invesco Asset Management (India) Private Limited |
| Type of scheme | An open-ended equity scheme investing on the basis of the Environmental, Social, and Governance (ESG) theme. |
| Investment Objective | The investment objective of the scheme is to generate capital appreciation over the long term through investments in a diversified portfolio of equity & equity- related securities selected on the basis of ESG theme. |
| Benchmark | Nifty 100 Enhanced ESG TRI |
| Entry Load | Not Applicable |
| Exit Load |
|
| Minimum Application Amount | Rs. 1,000 & in multiple of Rs.1 thereafter |
| Minimum Additional Amount | Rs. 1,000 & in multiple of Rs.1 thereafter |
| STP, DTP & SWP | Available |
| Plans Available |
|
| Options |
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| Fund Managers | Mr. Taher Badshah and Mr. Amit Nigam |
SIP Details
| Type | Minimum Installments | Minimum Amount |
| Monthly SIP | 12 | Rs.500 & in multiples of Rs.1 thereafter |
| 6 | Rs.1,000 & in multiples of Rs.1 thereafter | |
| Quarterly SIP | 4 | Rs.1,500 & in multiples of Rs.1 thereafter |
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