NFO Review : Invesco India Technology Fund : Invesco Mutual Fund has launched a new fund offer called ‘Invesco India Technology Fund’. It is an open-ended equity scheme aimed at achieving better returns by investing in different areas related to technology and technology. The funds raised through this NFO will be invested primarily in equity and equity-related instruments. Through this fund, emphasis will be laid on investing in companies that are doing business by adopting the latest technology in areas such as technology, automation, robotics, artificial intelligence and cloud computing.
Investing in a diversified portfolio
The fund house has said that it will invest in a diversified portfolio related to technology through Invesco India Technology Fund. The shares in which the money raised from this NFO will be invested will include shares of large cap as well as mid cap and small cap companies. The aim of this strategy is to maintain a balance between risk and return.
Also read: APY Explained: How to arrange 10 thousand rupees every month through Atal Pension Yojana, guaranteed income is available at very low premium
Why invest in ICICI India Technology Fund?
The aim of Invesco India Technology Fund is to take advantage of the rapid digital transformation taking place in India. For this, this fund will invest in companies focused on new technology, which are a part of this change and are earning profits. In recent years, the technology sector of the country has registered a high growth rate. Nifty IT TRI has shown a compounded annual growth rate (CAGR) of 16.99% in the last 10 years, while the compounded annual growth rate of Nifty 50 TRI has been 13.79% during the same period.
Also read: Index Fund vs ETF: Which is better among Index Fund and ETF? Which one to invest in for wealth creation
Investing in Global Technology Leaders
The fund house has said in the scheme’s brochure that Invesco India Technology Fund will invest in Indian companies as well as global technology leaders and innovators. But along with this, it has also made it clear that after the closure of the New Fund Offer, investments will not be made in overseas securities / overseas ETFs through the scheme for 6 months. After this, investments can be made in overseas securities (ADRs, GDRs etc.) keeping in mind the limit available at the fund level. It is also stated in the brochure that at present investment in overseas ETFs is temporarily suspended, which can be resumed only after receiving information from SEBI or AMFI.
Also read: Mutual Fund: Top 10 ELSS schemes gave up to 38% return in 5 years, their job is not just to save tax
Wealth creation in the long term
The objective of the NFO of Invesco India Technology Fund is to create wealth for its investors by achieving capital appreciation on the invested amount over the long term. For this purpose, the fund manager will identify and invest in companies that are ahead in technological innovation and have the potential to achieve rapid growth in the future. Through this strategy, the fund aims to provide profits to its investors by taking advantage of the growth in the technology sector. The minimum investment in the NFO of Invesco India Technology Fund can be made with just Rs 1,000. For those investing through Systematic Investment Plan (SIP), this amount is only Rs 500.
Also read: SGB Trading: How to buy and sell Sovereign Gold Bond in the stock market, what are its advantages and disadvantages
Who should invest in this NFO
The NFO of Invesco India Technology Fund has been placed in the ‘Very High’ category on the riskometer, so this fund is suitable only for those investors who are willing to take more risk for better returns. Also, it should be kept in mind that investing in this fund will be beneficial only if you hold it for a long time. There are constant changes in the technology sector, so it is important to be patient to get high returns from this fund.
How to invest?
To invest in the NFO of Invesco India Technology Fund, you can choose any option from Regular Plan and Direct Plan. Apart from this, you can also invest through Systematic Investment Plan (SIP), which can be started with a minimum of Rs 500. You can do SIP on a monthly basis i.e. every month, once in three months or on a half-yearly basis.
Highlights of Invesco India Technology Fund NFO
Category of the scheme :Open ended equity scheme, sectoral/thematic
NFO opening date : 3 September 2024
NFO closing date : 17 September 2024
Minimum Investment :Rs 1,000 for lump sum investment, Rs 500 for SIP
Risk level : Very High
Fund Manager:Hiten Jain, Aditya Khemani
Benchmarks : Nifty IT TRI
Exit Load :
-
0.50% charge on redemption within 3 months.
-
No charges on redemption after 3 months.
