All equity funds of Invesco India MF are now in top quartile in respective fund categories on a 1 yr basis – a culmination of efforts that began in early 2023 after a difficult 2022.
The decision in 2023 to focus on the domestic growth story and cut positions in global cyclicals with industrials/cap goods being the key focus segment, has significantly helped performance, along with a timely call back in 2023 to go overweight in pharma/healthcare. Significant bets in capital market related stocks have also been key performance contributors.
Taher is guiding his team to take profits selectively in industrials and capital market stocks on valuation concerns and has been deploying cash selectively in domestic consumption stocks – particularly those that cater to middle and lower income segments, where we are seeing some demand recovery.
China stimulus measures coupled with monetary policy easing in US/EU have changed global dynamics and Taher now finds IT services and select commodity stocks attractive in these changed dynamics.
A key development in his team which he believes will enable strong performance to be sustained in future too is tripling of coverage of stocks – which means many more ideas for his fund managers to evaluate and participate in.
He believes the mantra to build consistency in performance has 3 components: (1) extensive in-house research (2) keeping an open mind and being nimble – don’t get wedded to growth/value/other styles –listen to the market, and be in sync with it, and (3) maintain discipline of your investment and risk processes and participate only in those opportunities that fit into your framework.