Invesco Global Consumer Trends Fund NFO – How did it generate 22% annualized returns in 5-10 years?

Invesco Global Consumer Trends Fund (FoF) - NFO ReviewInvesco Global Consumer Trends Fund NFO – How did it generate 22% annualized returns in 5-10 years?


Invesco Global Consumer Trends Fund NFO would open for subscription on 4th December, 2020. This is an open ended scheme that invests in existing Invesco Global Consumer Trends Fund that generated 22% annualized returns in the last 10 years (INR terms). Invesco Global Consumer Trends invests in global companies that are changing trends. Such companies might not be listed in India, hence investing in this fund would indirectly help you to access and invest in such companies. Should you invest in Invesco Global Consumer Trends Fund NFO? Can we expect the past performance of 22% annualized returns in the last 10 years would continue in future?

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Invesco Global Consumer Trends Fund NFO – Issue Details

This is an open-ended mutual fund. Here are the NFO issue details.

Download Invesco Global Consumer Trends Fund NFO KIM

What is the investment objective of Invesco Global Consumer Trends Fund NFO?

To provide long-term capital appreciation by investing predominantly in units of Invesco Global Consumer Trends Fund, an overseas fund which invests in an international portfolio of companies predominantly engaged in the design, production or distribution of products and services related to the discretionary consumer needs of individuals.

However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.

Who is the Fund Manager of Invesco Global Consumer Trends Fund?

Mr. Neelesh Dhamnaskar and Mr. Krishna Cheemalapati (for debt investments).

What is the benchmark for this scheme?

The benchmark for this scheme is MSCI World Consumer Discretionary Index – Net Dividend.

What is the allocation pattern in this mutual fund scheme?

This fund investment pattern is as follows:

Can NRI invest in this MF scheme?

Yes, they can invest in this scheme. They can invest on repatriation or non repatriation basis.

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Why to invest in the Invesco Global Consumer Trends Fund NFO?

Here are a few reasons to invest in this fund.

1) This underlying international mutual fund would invest in companies based on the theme “changing trends”. E.g. Shoping means Amazon, Bored means, watch something on Netflix, Keep in touch with friends on Facebook, heading somewhere, lets book at Uber etc., We are using such companies products extensively. This fund would target such companies.

2) The companies that are growing at a fast pace are coming up with innovative products, hence their share prices are moving at a faster pace. This fund would encash such companies as such innovative products are coming again through changing trends theme.

3) The underlying fund has past history where the annualized returns are over 22% for 5 years and 10 year period.

Major risk factors you should consider before investing in such funds

One should consider some of these risk factors / negative factors before investing.

1) This underlying fund would invest in changing trends that may not always work. Some of the companies that may come up with innovative products can collapse for various reasons.

2) This fund invests in global markets like US, China, Japan, UK, Poland, Taiwan etc., Such global funds would have geopolitical risks and forex risk.

3) This fund invests some of the investments in debt instruments of corporates which is high risk.

4) This fund invests in REITs and InvITs which are high risk.

Portfolio weightage – Invesco Global Consumer Trends Fund by country

Weightage of Invesco Global Consumer Trends Fund portfolio by country

Top 10 Holdings of Invesco Global Consumer Trends Fund

Here are the top companies where this fund invested.

Invesco Global Consumer Trends Fund- Top 10 holdings by Oct-2020

How is the past performance of Invesco Global Consumer Trends Fund?

Since the Invesco Global Consumer Trends Fund (FoF) would invest in underlying Invesco Global Global Consumer Trends Fund, let us check the performance of the underlying fund.

Performance in terms of USD (without Forex Conversion impact)

Performance of Invesco Global Consumer Trends Fund - 2010 to 2010 and comparision with MSCI World consumer disc index ND

Performance in terms of INR (After Forex Conversion impact)

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Performance of Invesco Global Consumer Trends Fund - 2010 to 2010 and comparision with MSCI World consumer disc index ND in INR

Also Read: 5 Smallcap funds gave up to 60% returns in 1 year

Should you invest in the Invesco Global Consumer Trends Fund NFO?

Invesco Global Consumer Trends Fund (FoF) is an international fund that invests based on “Changing Trends” theme.

One should note that while this NFO is new, the underlying fund is not new and has past performance. The underlying fund has been existence for the past 20 years. It generated amazing performance of 16% annualized returns in the last 5 and 10 years (USD Terms) and 19% to 22% in INR terms. The gap of 3% to 5% returns between USD and INR is due to forex conversion impact which one may not expect in the future. Due to bull market, it posted 41% returns in the last 1 year. Such past performance may or may not repeat. If you observe such fund invests in companies that are coming up with innovative products. Hence this fund is a consistent performer in the last 5 to 10 years.

Since it invests in global markets, this fund is for high risk investors. High risk investors can invest some of their portfolio in such schemes. Moderate risk to low risk investors should avoid such funds.

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Suresh KP

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