Invesco Mutual Fund has launched a new FoF called ‘Invesco India-Invesco Global Consumer Trends Fund of Fund‘ an open-ended Fund of Fund scheme investing in Invesco Global Consumer Trends Fund. The fund will invest 95% -100% of its assets in shares of Invesco Global Consumer Trends Fund, a Luxembourg domiciled Invesco fund, which invests 70% – 100% of its assets in a global portfolio of equity securities of companies focused on discretionary consumer needs of individuals. The NFO opens December 4 and closes on December 18. “While we consume services from many of these companies* like Amazon, Netflix, Uber, Sony, Nintendo in India, we are unable to invest and benefit as these companies/businesses are not listed on the stock exchanges in India.
More importantly, investors should consider geographical diversification, which often gets less spotlight than perhaps it should as different markets perform differently. Not only geographic diversification reduces portfolio risk, it also presents some unique investment opportunities and has the potential to enhance portfolio returns,” said Saurabh Nanavati, Chief Executive Officer, Invesco Mutual Fund.
Nanavati added that, “The current offering is our one such effort to offer Indian investors a fund, which is unique in the marketplace from an investment strategy perspective as it captures changes in consumer habits with the emergence of digital lifestyles and is not focused on a single country; thereby offering a portfolio having a low degree of overlap and low correlation with available funds. An allocation to the fund could help investors to overall reduce portfolio risk.”
The fund follows a flexible approach with a focus on companies that are expected to profit from changing consumer discretionary trends, currently e-Commerce, digital media consumption, demographic shifts towards experiences over material goods or towards healthier lifestyles, and other global consumer durable and non-durable goods cycles.
