Given Over 20% SIP Returns (Absolute) In 5-Years, This Dynamic Asset Allocation Fund Is Good For SIP

Asset allocation is a crucial component of portfolio management. It not only allows an investor to reap the benefits of multiple asset classes, but it also reduces the danger of concentration. This allows you to navigate varied market conditions with relative ease while still meeting your financial objectives. Dynamic Asset Allocation is a strategy for asset allocation that is implemented on a regular basis to keep up with changing market conditions.

Invesco India Dynamic Equity Fund - Direct Plan-Growth

This is a 14-year-old Hybrid Dynamic Asset Allocation Mutual Fund scheme launched on October 4, 2007, by the Invesco Mutual Fund. The fund's Direct-Growth option's Asset Under Management (AUM) is Rs 671.34 crore. While The Net Asset Value (NAV) dated 03 June 2022 is Rs 40.23. It is a medium-sized Dynamic Asset Allocation fund. The fund has 0.98% expense ratio, while the category average expense ratio is 0.66%, less than the fund's expense ratio. 

It is an open-ended, rated highly risky fund. It has been rated 5-star by the Mutual Fund Rating Agency CRISIL. The fund has given exceptional performance among peer funds. Its benchmark is the NIFTY 50 Hybrid Composite debt 50:50 Index. The fund is designed to dynamically change its allocation. The investment objective is to generate capital appreciation by investing in equity and debt securities which are managed dynamically.

This fund is suitable for investors who are looking for long term capital appreciation. It invests in equity & debt securities which are managed dynamically. Investment in this fund starts with a minimum required amount of Rs 1,000, whereas, for SIP, it is Rs 500. This fund doesn't have any lock-in period. However, it charges 0.25 for redemption on units in excess of 10% within 90 days of the investment.

Absolute & Annualised Returns (CAGR)

Lump-Sum Investment Returns

Since its inception, it has delivered 12.01% average annual returns. 

Tenure	Absolute Returns	Annualised Returns
1 Year	2.50%	2.50%
2 Year	31.21%	14.55%
3 Year	24.82%	7.66%
5 Year	45.34%	7.76%
Since Inception	191.10%	12.01%

SIP Returns

It has given negative returns on 1 year SIP.

Tenure	Absolute Returns	Annualised Returns
1 Year	-2.21%	-4.06%
2 Year	7.05%	6.70%
3 Year	13.94%	8.66%
5 Year	21.63%	7.76%

 

Portfolio

The fund has 66.49% investment in domestic equities of which 42.2% is in Large Cap stocks, 5.37% is in Mid Cap stocks, and 2.78% in Small Cap stocks. The fund has 14.88% investment in Debt, of which 7.35% is in Government securities, and 7.53% is in Low-Risk securities.

The fund's equity portion is primarily invested in the Financial, Energy, Healthcare, Technology, and Materials sectors. The debt portion of the fund has low credit quality indicating the quality of borrowers it has lent it to is not too great.

The fund's top holdings are Reliance Industries Ltd., Government of India, Invesco India Money Market Fund Direct-Growth, ICICI Bank Ltd., and HDFC Bank Ltd.

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.