potential for mid-sized investment fund to enhance your financial holdings

The Invesco India Midcap Fund, a mainstay in the Indian equity market for over 18 years, has proven to be a reliable choice for long-term investors. With a time horizon of 7-10 years or more, this fund is ideally placed in the core part of an investor's portfolio.

Under the current management of Aditya Khemani, the fund has shown a knack for strategic investments. It has increased exposure in sectors such as auto components, industrial products, pharma, software firms, retailing, healthcare services, and capital market stocks. However, due to adverse valuations, business prospects, and macroeconomic scenarios from early to mid-2024, the fund adjusted its exposure in these segments.

The Invesco India Midcap fund's portfolio includes a significant exposure to large-cap stocks, amounting to 15% of the portfolio. This diversified approach is reflected in the fund's compact portfolio of 45-50 stocks, where the exposure to individual stocks is generally restricted to less than 5% and sector exposures rarely go to double digits.

Data points discussed in this article are based on the period from August 2020 to September 6, 2025. During this time, the fund has demonstrated impressive performance. The mean returns over the same timeframe and rolling period for Invesco India Midcap are 19.8%, while those for the Nifty Midcap 150 TRI are 18.6%. The fund's upside capture ratio of 130.8 indicates that its Net Asset Value (NAV) rises much more than the benchmark during rallies.

Moreover, the fund has consistently outperformed the Nifty Midcap 150 TRI by up to two percentage points over the long term. A monthly Systematic Investment Plan (SIP) in the fund for the past 10 years would have delivered 22.8% returns (XIRR), while systematic investments in the Nifty Midcap 150 TRI would have given 20.1% over the same period.

It's worth noting that the fund's downside capture ratio of 89.3 suggests that the scheme's NAV falls much less than the benchmark during corrections. This resilience is a testament to the fund's risk management strategies.

The fund's strategy is a mix of value/contrarian and growth approaches to stock/sector selection. As of now, retailing is the top sector in Invesco India Midcap fund's portfolio, reflecting the fund manager's confidence in this sector.

In conclusion, the Invesco India Midcap Fund, with its long-term performance, diversified portfolio, and strategic approach, continues to be a compelling choice for investors seeking growth with a degree of stability. However, as with all investments, it's essential to consider individual risk profiles and investment objectives before making a decision.

Note: The information provided is related to the direct plan of Invesco India Midcap fund and is based on the data points discussed from August 2020 to September 6, 2025.