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Invesco India Medium Duration Fund: NFO closes on 13 July 2021

Invesco India Medium Duration Fund is an open-ended debt scheme, which invests in instruments with the Macaulay duration of three to four years.

Good to know

What is a medium duration fund?

These funds invest in debt and money market securities with a maturity period of three to five years. They usually offer better returns as compared to fixed deposits of the same duration.

What is Macaulay duration?

It refers to the amount of time taken for receiving back the money invested in a debt instrument through earning of interest and principal repayments.

Investment objective

The fund will invest primarily in corporate and government bonds in a manner that the Macaulay duration of the portfolio is between three to four years.

Invesco India Medium Duration Fund will invest 75-85% of its corpus in ‘AAA’ rated (the highest possible ratings) bonds and Government Securities. The remaining 15-25% of the portfolio will be invested in select relatively lower rated (AA+/AA/AA-) bonds depending on the credit environment.

In the current interest rate scenario, the fund believes that investing in a mix of high quality bonds and select AA rated bonds can help generate higher returns. This fund is tailored for investors with medium-to-long term investment horizons.

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Asset allocation

Instruments Allocation (% of total assets) Risk profile
Minimum Maximum
Debt (including government securities) and Money Market Instruments 0 100 Low to Medium
Units issued by REITs and InvITs 0 10 Medium to High

Scheme details

Name Invesco India Medium Duration Fund
Type An open-ended medium-term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 3 years and 4 years
Category Medium Duration
Benchmark CRISIL Medium Term Debt Index
Plans Direct and Regular
Entry/Exit load
  • Nil
Fund manager
  • Mr. Vikas Garg
  • Mr. Krishna Cheemalapati
Expense Ratio Up to 2%
Minimum application amount (during NFO) ₹1,000 and in multiples of ₹1 thereafter
Additional application amount ₹1,00 and in multiples of ₹1 thereafter

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This product is suitable for investors who are seeking*: Riskometer
  • Income over medium term
  • Investments predominantly in debt and money market instruments with portfolio Macaulay Duration of 3-4 years

*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

Note: The above information has been sourced from the Scheme Information Document provided by Invesco Asset Management (India). To read the entire document, click here. Disclaimer RKSV Securities India Private Limited (ARN/Distributor - 107930; brand name Upstox) is the distributor of the mutual fund. Please consult your investment advisor before investing.

Mutual fund investments are subject to market risks, read all scheme related documents carefully.

Categories: Mutual Funds