Invesco India Consumption Fund NFO Opens from October 03, 2025

The Invesco India Consumption Fund - Direct (G) is an open-ended equity scheme following a consumption theme, designed to generate long-term capital appreciation. It primarily invests in equity and equity-related instruments of companies that are expected to benefit from India’s growing consumption patterns. The scheme will adopt a diversified approach, investing across sectors such as consumer goods, financial services, pharmaceuticals, e-commerce, hospitality, media, and more. The NFO uses both top-down and bottom-up investment strategies to select stocks and aims to capture opportunities arising from urbanisation, rising discretionary income, digital adoption, changing lifestyles, and increased demand for premium products. Investors can apply through multiple facilities, including SIP, STP, and ASBA. While the scheme offers potential for long-term growth, it carries market-linked risks typical of thematic equity funds, including volatility and liquidity risks. Overall, the NFO presents an opportunity for investors seeking exposure to India’s consumption-driven growth story while employing structured risk management strategies.

Key Features of Invesco India Consumption Fund

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• Opening Date: October 03, 2025 
• Closing Date: October 17, 2025
• Exit Load: 0.50% if redeemed/switched within 3 months of allotment, Nil if redeemed/switched after 3 months
• Minimum Investment Amount: Purchase: ₹1,000 per application, multiples of ₹1 thereafter

Objective of Invesco India Consumption Fund

The Invesco India Consumption Fund - Direct (G) aims to generate long-term capital appreciation by predominantly investing in equities and equity-related instruments of companies benefiting from India’s consumption theme. There is no assurance that the objective will be achieved, but the strategy seeks to leverage evolving consumption trends and demographic shifts to deliver growth over time.

Investment Strategy of Invesco India Consumption Fund

• Invest across market capitalisation to build a diversified portfolio
• Select companies using a combination of top-down and bottom-up approaches
• Focus on sectors benefitting from rising consumption, digital adoption, and discretionary spending
• Include domestic and overseas securities aligned with the consumption theme
• Identify companies gaining from premium/luxury products, urbanisation, and changing lifestyles

Risks Associated with Invesco India Consumption Fund

• Market Risk: Equity investments are volatile and influenced by macroeconomic and market conditions
• Theme Concentration Risk: Exposure is limited to companies within the consumption theme
• Liquidity Risk: Sale or purchase of securities may be affected by market trading volumes
• Interest Rate & Credit Risk: Fixed-income holdings are subject to interest rate fluctuations and credit defaults
• Derivatives Risk: Investments in futures and options may result in losses due to market movements
• Small & Mid-Cap Risk: Medium/small-cap stocks may be more volatile compared to large-cap securities
• Prepayment & Reinvestment Risk: Investments in debt securities and securitised debt may be affected by changing interest rates and early repayments

Risk Mitigation Strategy by the NFO

The NFO adopts multiple risk management measures to protect investor interests:

• Volatility Management: Sector and company exposure is monitored regularly to reduce undue risk
• Concentration Control: Diversification across sectors and stocks reduces concentration risk
• Liquidity Control: Portfolio construction ensures adequate liquidity for meeting redemption obligations
• Derivative Usage: Derivatives are employed prudently for hedging and portfolio balancing, in line with regulatory limits
• Active Monitoring: Continuous oversight and adjustments are made to align risk with investment objectives

What Type of Investor Should Invest in This NFO?

• Investors seeking long-term capital appreciation linked to India’s consumption-driven growth
• Those comfortable with equity market volatility and thematic investment risks
• Individuals aiming to diversify across sectors benefit from discretionary and essential consumption
• Investors looking for structured risk management and professional fund management

Where Will the Scheme Invest?

• Equity & Equity Related Instruments: Shares, convertible debentures, warrants, and equity derivatives
• Sectors: Consumer goods, services, e-commerce, healthcare, pharmaceuticals, finance, realty, hospitality, media, and energy
• Derivatives: Futures and options on stocks and indices for trading, hedging, and portfolio balancing
• Debt & Money Market Instruments: To maintain liquidity, meet redemptions, and manage risk
• Securitised Debt & ABS/MBS: Carefully selected to complement the equity portfolio while managing interest rate and credit risk