Invesco Management (India) Pvt. Ltd. (Formerly known as Religare Invesco Management Company Pvt. Ltd.) (CIN No: U67190MH2005PTC153471), 2101-A, 21 st Floor, A Wing, Marathon Futurex, N. M. Joshi Marg, er Parel, Mumbai - 400 013 Tel: +91 22 67310000 Fax: +91 22 23019422 Email: mfservices@invesco.com; www.invescomutualfund.com ADDENDUM Invesco India Dynamic Equity Fund An Open-ended Equity Scheme Objective: To generate long-term capital growth from a focused portfolio of predominantly equity and equity-related securities. Invesco India Contra Fund An Open-ended Equity Scheme Objective: To generate capital appreciation through investment in equity and equity related instruments. The Scheme will seek to generate capital appreciation through means of contrarian investing. Invesco India Growth Fund An Open-ended Diversified Equity Scheme Objective: To generate long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities. Invesco India Banking Fund An Open-ended Banking Sector Scheme Objective: To generate long-term capital growth from a portfolio of equity and equity-related securities of companies engaged in the business of banking and financial services. Invesco India Business Leaders Fund An Open-ended Equity Scheme Objective: To generate long term capital appreciation by investing in equity and equity related instruments including equity derivatives of companies which in our opinion are leaders in their respective industry or industry segment. Invesco India PSU Equity Fund An Open-ended Equity Scheme Objective: To generate capital appreciation by investing in equity and equity related instruments of companies where the Central / State Government(s) has majority shareholding or management control or has powers to appoint majority of directors. Invesco India Arbitrage Fund An Open-ended Equity Scheme Objective: To generate income through arbitrage opportunities emerging out of mis-pricing between the cash market and the derivatives market and through deployment of surplus cash in fixed income instruments. Invesco India Mid Cap Fund An Open-ended Equity Scheme Objective: To provide long term capital appreciation by investing in a portfolio that is predominantly constituted of equity and equity related instruments of mid cap companies. Invesco India Infrastructure Fund An Open-ended Equity Scheme Objective: To provide long term capital appreciation by investing in a portfolio that is predominantly constituted of equity and equity related instruments of infrastructure companies. Invesco India Mid N Small Cap Fund An Open-ended Equity Scheme Objective: To provide long term capital appreciation by investing in a portfolio that is predominantly constituted of equity and equity related instruments of mid and small cap companies. Invesco India Liquid Fund An Open-ended Liquid Scheme Objective: To provide reasonable returns, commensurate with low risk while providing a high level of liquidity, through a portfolio of money market and debt securities. Invesco India Ultra Short Term Fund An Open-ended Debt Scheme Objective: To provide liquidity and optimal returns to the investor by investing primarily in a mix of short term debt and money market instruments which results in a portfolio having marginally higher maturity and moderately higher credit risk as compared to a liquid fund at the same time maintaining a balance. Invesco India Short Term Fund An Open-ended Income Scheme Objective: To generate steady returns with a moderate risk for investors by investing in a portfolio of short-medium term debt and money market instruments. Invesco India Credit Opportunities Fund An Open-ended Income Scheme Objective: To generate high level of current income (vis-à-vis treasury bills) consistent with preservation of capital and maintenance of liquidity by investing primarily in investment-grade debt securities and money market instruments.
Invesco India Term Bond Fund An Open-ended Income Scheme Objective: To generate regular income and capital appreciation by investing in a portfolio of medium term debt and money market instruments. Invesco India Bank Debt Fund An Open-ended Debt Scheme Objective: To generate optimal returns by investing in a portfolio of debt & money market instruments issued primarily by banks. Invesco India Active Income Fund An Open-ended Income Scheme Objective: To generate optimal returns while maintaining liquidity through active management of the portfolio by investing in debt and money market instrument. Invesco India Gilt Fund An Open-ended Dedicated Gilt Fund Objective: To generate optimal returns by investing in a portfolio of securities issued and guaranteed by Central and State Government. Invesco India Corporate Bond Opportunities Fund An Open-ended Income Scheme Objective: To generate returns and capital appreciation by predominantly investing in corporate debt securities of varying maturities across the credit spectrum. Invesco India Monthly Income Plan (MIP) Plus An Open-ended Income Scheme. Monthly income is not assured and is subject to availability of distributable surplus. The term Plus has been used in terms of the asset allocation and not in terms of returns/yield. Objective: To generate regular income through a portfolio of fixed income securities, Gold ETFs and equity & equity related instruments. Invesco India Gold Exchange Traded Fund An Open-ended Gold Exchange Traded Fund Objective: To generate returns that closely correspond to the returns provided by investment in physical gold in the domestic market, subject to tracking error.
Addendum to the Scheme Information Documents (SIDs) And Key Information Memorandums (KIMs) of Schemes of Invesco Mutual Fund Investors/ unit holders are advised to note that pursuant to SEBI Circular no. SEBI/HO/IMD/DF3/CIR/P/2017/114 dated October 6, 2017 read with Circular No. SEBI/HO/IMD/DF3/CIR/P/2017/126 dated December 4, 2017 on Categorization and Rationalization of Mutual Fund Schemes, Invesco Trustee Pvt. Ltd., (the Trustee to Invesco Mutual Fund) has decided to carry out following changes to the Scheme(s) with effect from April 27, 2018: 1. Invesco India Active Income Fund Particulars Existing Features/Provisions Proposed Features/Provisions Name of Invesco India Active Income Fund Invesco India Corporate Bond Fund the Scheme Scheme Type An Open ended Income Scheme An open ended debt scheme predominantly investing in AA+ and above rated corporate bonds. Objective Pattern Text To generate optimal returns while maintaining liquidity through active management of the portfolio by investing in debt and money market instruments. As the portfolio of the Scheme will be actively managed, the Scheme may have a high turnover in order to achieve the investment objective. Under normal circumstances the asset allocation pattern Debt * including Government Securities and Corporate Debt Indicative (% of net assets) Risk Profile Minimum Maximum / 0 90 to 10 100 *Debt securities may include securitized debts (excluding foreign securitized debt) up to 50% of the net assets of the Scheme in fixed income derivatives - up to 50% of the net assets of the Scheme. The cumulative gross exposure through debt and derivative positions shall not exceed 100% of the net assets of the Scheme, subject to provisions of SEBI circular dated August 18, 2010 w.r.t. investment in derivatives. The Scheme may also use various derivatives and hedging products from time to time, as would be available and permitted by SEBI, in an attempt to protect the value of the portfolio and enhance Unit holders interests. The total exposure of the Scheme in a particular sector (excluding investments in Bank CDs, CBLO, G-Secs, T-Bills, short term deposits of scheduled commercial banks and AAA rated securities issued by Public To generate regular and stable income by investing predominantly in bonds issued by corporates. The scheme will invest in bonds which are rated AA+/ AAA by credit rating agencies. Under normal circumstances the asset allocation pattern Indicative (% of net assets) Risk Profile Minimum Maximum / Corporate Debt* 80 100 to Debt# and 0 20 to * AA+ and above rated corporate bonds # Debt includes government securities. in securitized debt shall not exceed 50% of the net assets of the Scheme. The Scheme will not invest in foreign securitized debt. The Scheme may invest in un-rated debt instruments based on the internal rating assigned to the instruments by the AMC. In assigning the internal rating, the AMC will use its internal proprietary credit appraisal process to evaluate credits. The Scheme will not undertake overseas investments/ invest in foreign securities. The Scheme may use derivatives for purposes as may be permitted from time to time. The maximum gross derivative position will be restricted to 50% of the net assets of the Scheme. The cumulative gross exposure through debt and derivative positions shall not exceed 100% of the net assets of the Scheme, subject to provisions of SEBI circular dated August 18, 2010 w.r.t. investment in derivatives. The total exposure of the Scheme in a particular sector (excluding investments in Bank CDs, CBLO, G-Secs, T-Bills, short term deposits of scheduled commercial banks and AAA rated securities issued by Public
Financial Institutions and Public Sector Banks) shall not exceed 25% of the net assets of the Scheme. Further an additional exposure to financial services sector (over and above the limit of 25%) not exceeding 15% of the net assets of the Scheme will be allowed by way of increase in exposure to AA and above rated securities issued by Housing Finance Companies (HFCs) registered with National Housing Bank. The total investment/exposure in HFCs will not exceed 25% of the net assets of the Scheme. Financial Institutions and Public Sector Banks) shall not exceed 25% of the net assets of the Scheme. Further an additional exposure to financial services sector (over and above the limit of 25%) not exceeding 15% of the net assets of the Scheme will be allowed by way of increase in exposure to AA and above rated securities issued by Housing Finance Companies (HFCs) registered with National Housing Bank. The total investment/exposure in HFCs will not exceed 25% of the net assets of the Scheme. Corporate debt securities are debt instruments issued by a corporation, the holder of which receives interest from the corporation periodically for a fixed period of time and gets back the principal along with the interest due at the end of the maturity period. All Nongovernment debt securities are categorized as corporate debt securities. Short term corporate debt is issued primarily as commercial paper whereas long-term debt is issued as bonds. In India the terms Corporate Bonds and Debentures are used interchangeably. Corporate Bonds can be issued by way of public issue where the retail investors as well as institutions can participate in the issue or by way of private placement where only a limited number of investors participate in the issue. Corporate Bonds unlike equity shares don t guarantee an ownership in the Company but give regular income in the form of interest. Corporate Bonds are differentiated on the basis of Maturity i.e. Short Term, Long Term or Term; Coupon i.e. Fixed Rate, Floating Rate or Zero Coupon; Option i.e. Call Option or Put Option; Security i.e. secured by way of a charge on the assets of the borrower or unsecured and Redemption i.e. Single redemption or Amortizing The Scheme may also enter into repurchase and reverse repurchase obligations in all securities held by it as per the guidelines and regulations applicable to such transactions. The Scheme may engage in short selling of securities in accordance with the framework relating to short selling and securities lending and borrowing specified by SEBI. The Scheme shall not deploy more than 20% of its net assets in securities lending and not more than 5% of the net assets in securities lending to any single counter party. the scheduled commercial banks, subject to the guidelines issued by SEBI vide its circular dated April 16, 2007, as may be amended from time to time. Subject to the SEBI Regulations, the asset allocation pattern indicated above may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions can vary substantially depending upon the perception of the fund manager; the intention being at all times to seek to protect the interests of the Unit holders. Such changes in the Bonds. The Scheme may enter into repos/reverse repos, other than repo in corporate debt securities, as may be permitted by RBI. From time to time, the Scheme may hold cash. A part of the net assets may be invested in the Collateralised Borrowing & Lending Obligations (CBLO) or repo or in an alternative investment as may be provided by RBI to meet the liquidity requirements. The Scheme may engage in short selling of securities in accordance with the framework relating to short selling and securities lending and borrowing specified by SEBI. The Scheme shall not deploy more than 50% of its net assets in securities lending and not more than 10% of the net assets in securities lending to any single counter party. the scheduled commercial banks, subject to the guidelines issued by SEBI vide its circular dated April 16, 2007, as may be amended from time to time. Subject to the SEBI Regulations, the asset allocation pattern indicated above may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions can vary substantially depending upon the perception of the Fund Manager; the intention being at all times to seek to protect the interests of the Unit holders. Such changes in the
investment pattern will be for short term and for defensive considerations only. investment pattern will be for short term and for defensive considerations only. The Fund Manager will restore asset allocation in line with the asset allocation Strategy The fund management team will endeavor to meet the investment objective while maintaining a balance between safety, liquidity and profitability aspects of various investments. The Scheme will be actively managed and the fund management team will take an active view of the interest rate movements by keeping a close watch on various parameters of the Indian economy as well as the developments in global markets. views/decisions will be taken on the basis of the following parameters: 1. Prevailing interest rate scenario; 2. Quality of the security / instrument (including the financial health of the issuer); 3. Maturity profile of the instrument; 4. Liquidity of the security; 5. Growth prospects of the company / industry; 6. Any other factors in the opinion of the fund management team. pattern within 3 months. The Scheme aims to generate regular and steady income by investing in high quality corporate bonds. A minimum of 80% will be invested in corporate bonds which are rated AA+/ AAA by rating agencies in India. In addition, the corporate bonds will also be evaluated through the rigorous internal credit appraisal process before they are included in the portfolio. The Scheme will be actively managed rather than being a passive scheme i.e it would decide on the appropriate asset allocation depending on market conditions. The Scheme has the discretion to take aggressive interest rate/duration risk calls and allocate assets accordingly. This could mean investing a large portion (up to 90%) of the net assets in long dated Government securities and debt instruments (carrying relatively higher interest rate risk/duration risk), or on defensive considerations, entirely (up to 100%) in money market instruments. Accordingly, the interest rate risk/duration risk on the scheme may change substantially depending upon Fund s call. The Scheme may have a high turnover in order to achieve the investment objective. Benchmark CRISIL Composite Bond Fund Index CRISIL AAA Short Term Bond Index Product Label regular income over medium to long term provide optimal returns while maintaining liquidity through actively managed portfolio of debt and money market instruments Income over medium to long term s in AA+ and above rated corporate bonds
2. Invesco India Bank Debt Fund Particulars Existing Features/Provisions Proposed Features/Provisions Name of the Invesco India Bank Debt Fund Invesco India Banking & PSU Debt Fund Scheme Scheme Type An Open ended Debt Scheme An open ended debt scheme predominantly investing in Debt instruments of banks, Public Sector Undertakings, Objective Pattern To generate optimal returns by investing in a portfolio of debt & money market instruments issued primarily by banks. Under normal circumstances the asset allocation pattern Indicative (% of net assets) Risk Profile Minimum Maximum / Debt & 80 100 to issued by Banks Securities 0 20 issued by Public Financial Institutions, T- bills, CBLO, G- Sec, Units of Debt & Liquid Mutual Fund Schemes* Public Financial Institutions and Municipal Bonds. To generate returns by investing primarily in debt & issued by Banks, Public Financial Institutions (PFIs), Public Sector Undertakings (PSUs) and Municipal Bonds. Under normal circumstances the asset allocation pattern Indicative (% of net assets) Risk Profile Minimum Maximum / Debt and 80 100 to issued by Banks, PFIs, PSUs and Municipal Bonds Debt # and issued by other than banks, PFIs, PSUs and Municipal Bonds 0 20 to Text * in mutual fund units will be restricted to 10% of the net assets of the Scheme. The total exposure of the Scheme in a particular sector (excluding investments in Bank CDs, CBLO, G-Secs, T-Bills, short term deposits of scheduled commercial banks and AAA rated securities issued by Public Financial Institutions and Public Sector Banks) shall not exceed 25% of the net assets of the Scheme. The Scheme will not invest in securitized debt. Further, the Scheme will not participate in repo in corporate debt securities. Note: Financial institutions shall mean the list of public financial institutions as defined by RBI vide its master circular no. DBOD.FID.FIC.No.4/01.02.00/2012-13 dated July 2, 2012 (as maybe amended from time to time). # Debt includes government securities. Deleted The total exposure of the Scheme in a particular sector (excluding investments in Bank CDs, CBLO, G-Secs, T-Bills, short term deposits of scheduled commercial banks and AAA rated securities issued by Public Financial Institutions and Public Sector Banks) shall not exceed 25% of the net assets of the Scheme. Further an additional exposure to financial services sector (over and above the limit of 25%) not exceeding 15% of the net assets of the Scheme will be allowed by way of increase in exposure to AA and above rated securities issued by Housing Finance Companies (HFCs) registered with National Housing Bank. The total investment/exposure in HFCs will not exceed 25% of the net assets of the Scheme. in securitized debt shall not exceed 50% of the net assets of the Scheme. The scheme will not invest in foreign securitized debt. Note: Financial institutions shall mean the list of public financial institutions as defined by RBI vide its master circular no. DBOD.FID.FIC.No.4/01.02.00/2012-13 dated July 2, 2012 (as maybe amended from time to time).
The Scheme may seek investment opportunity in foreign securities in accordance with the guidelines stipulated by SEBI and RBI from time to time. The exposure to foreign securities (including mutual fund and other approved securities) shall not exceed 20% of the net assets of the Scheme. The scheme will not invest in foreign securitized debt. Strategy The Scheme may use derivatives for purposes as may be permitted from time to time. The maximum gross derivative position will be restricted to 50% of the net assets of the Scheme. The cumulative gross exposure through debt and derivative positions shall not exceed 100% of the net assets of the Scheme, subject to provisions of SEBI circular dated August 18, 2010 w.r.t. investment in derivatives. In addition to the instruments stated in the table above, the Scheme may enter into repos/reverse repos, other than repo in corporate debt securities, as may be permitted by RBI. From time to time, the Scheme may hold cash. A part of the net assets may be invested in the Collateralised Borrowing & Lending Obligations (CBLO) or repo or in an alternative investment as may be provided by RBI to meet the liquidity requirements. The Scheme may engage in short selling of securities in accordance with the framework relating to short selling and securities lending and borrowing specified by SEBI. The Scheme shall not deploy more than 20% of its net assets in securities lending and not more than 5% of the net assets will be deployed in securities lending to any single counter party. the scheduled commercial banks, subject to the guidelines issued by SEBI vide its circular dated April 16, 2007, as may be amended from time to time. Subject to the SEBI Regulations, the asset allocation pattern indicated above may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions can vary substantially depending upon the perception of the fund manager; the intention being at all times to seek to protect the interests of the Unit holders. Such changes in the investment pattern will be for short term and for defensive considerations only. The fund manager will restore asset allocation in line with the asset allocation pattern within 1 month. The Scheme endeavors to generate optimal returns with low credit risk. in Debt and issued by banks, treasury bills, government securities and securities issued by Public Financial Institutions is primarily with the intention of maintaining high credit quality & liquidity. The trading of bank assets is much higher in the market compared to trading in other credit securities. By maintaining a portfolio with higher concentration in bank assets, the liquidity characteristics will be maintained. The Scheme will invest at least 70% of its net assets in securities rated AAA (long term) and/ or A1+ (short The Scheme may seek investment opportunity in foreign securities in accordance with the guidelines stipulated by SEBI and RBI from time to time. The exposure to foreign securities (including mutual fund and other approved securities) shall not exceed 20% of the net assets of the Scheme. The Scheme may use derivatives for purposes as may be permitted from time to time. The maximum gross derivative position will be restricted to 50% of the net assets of the Scheme. The cumulative gross exposure through debt and derivative positions shall not exceed 100% of the net assets of the Scheme, subject to provisions of SEBI circular dated August 18, 2010 w.r.t. investment in derivatives. The Scheme may enter into repos/reverse repos, other than repo in corporate debt securities, as may be permitted by RBI. From time to time, the Scheme may hold cash. A part of the net assets may be invested in the Collateralised Borrowing & Lending Obligations (CBLO) or repo or in an alternative investment as may be provided by RBI to meet the liquidity requirements. The Scheme may engage in short selling of securities in accordance with the framework relating to short selling and securities lending and borrowing specified by SEBI. The Scheme shall not deploy more than 50% of its net assets in securities lending and not more than 10% of the net assets in securities lending to any single counter party. the scheduled commercial banks, subject to the guidelines issued by SEBI vide its circular dated April 16, 2007, as may be amended from time to time. Subject to the SEBI Regulations, the asset allocation pattern indicated above may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions can vary substantially depending upon the perception of the Fund Manager; the intention being at all times to seek to protect the interests of the Unit holders. Such changes in the investment pattern will be for short term and for defensive considerations only. The Fund Manager will restore asset allocation in line with the asset allocation pattern within 3 months. The Scheme endeavors to generate optimal returns with low credit risk. primarily in Debt and money market instruments issued by Banks, PFIs, PSUs and Municipal Bonds with the intention of maintaining high credit quality and liquidity. The investment team of the AMC will pick credits from the approved list of credits based on the credit assessment following a rigorous and in-depth credit evaluation of the debt and money market instruments. The credit evaluation monitors the credit worthiness of
term) and equivalent. The Scheme shall not invest in an issuer and assesses the credit exposure limit. securities rated below AA- or equivalent. The investment team of the AMC will pick credits from the approved list of credits based on the credit assessment post the rigorous in depth credit evaluation of debt & money market instruments. The credit evaluation monitors the credit worthiness of an issuer and assesses the credit exposure limit. It is essentially a bottom up approach and includes a study of the operating environment of the issuer, the past track record as well as the future prospects of issuer and short term/ long term financial health of the issuer. The fund will essentially follow a bottom-up approach while taking into consideration the study of the operating environment of the issuer, past track record as well as the prospects of the issuer and also the short and long term financial health of the issuer. Financial institutions shall mean the list of public financial institutions as defined by RBI vide its master circular no. DBOD.FID.FIC.No.4/01.02.00/2012-13 dated July 2, 2012 (as maybe amended from time to time). Financial institutions shall mean the list of public financial institutions as defined by RBI vide its master circular no. DBOD.FID.FIC.No.4/01.02.00/2012-13 dated July 2, 2012 (as maybe amended from time to time). Benchmark CRISIL 1 year CD Index CRISIL Short Term Bond Fund Index Product Label regular income over short to medium term provide optimal returns by investing in debt and money market instruments issued primarily by banks them returns over short to medium term investments primarily in debt & money market instruments issued by Banks, PFIs, PSUs and Municipal Bonds 3. Invesco India Corporate Bond Opportunities Fund Particulars Existing Features/Provisions Proposed Features/Provisions Name of Invesco India Corporate Bond Opportunities Fund Invesco India Credit Risk Fund the Scheme Scheme Type An Open ended Income Scheme An open ended debt scheme predominantly investing in AA and below rated corporate bonds (excluding Objective To generate returns and capital appreciation by predominantly investing in corporate debt securities of varying maturities across the credit spectrum. AA+ rated corporate bonds) To generate accrual income and capital appreciation by investing in debt securities of varying maturities across the credit spectrum.
Under normal circumstances the asset allocation pattern Under normal circumstances the asset allocation pattern Pattern Indicative (% of net assets) Risk Profile Indicative (% of net assets) Risk Profile Minimu Maximu Minimum Maximum / m m / Corporate 80 100 Corporate 65 100 Debt* & to High Debt* to High Securities Debt # and 0 35 to issued by Text Public Private Sector entities (excluding instruments and issued by Banks) 0 20 to issued by Banks CBLO, T- 0 20 Bills & Repo * in securitized debt including pass through certificate (PTC) shall not exceed 50% of the net assets of the Scheme. The Scheme will not invest in foreign securitized debt. The Scheme will invest only in debt instruments which are issued by a corporate whose debt programme is rated as investment grade by a credit rating agency. The Scheme shall not invest in government securities and State Development Loans (SDLs) but may invest in T-Bills, Repo and CBLO upto the limit stated above. (As per the current rating convention, rating BBB and above is considered as investment grade.) The Scheme will not invest in un-rated debt instruments. The Scheme will not undertake overseas investments / invest in foreign securities. The total exposure of the Scheme in a particular sector (excluding investments in Bank CDs, CBLO, TBills, short term deposits of scheduled commercial banks and AAA rated securities issued by Public Financial Institutions and Public Sector Banks) shall not exceed 25% of the net assets of the Scheme. Further an additional exposure to financial services sector (over and above the limit of 25%) not exceeding 15% of the net assets of the Scheme will be allowed by way of increase in exposure to AA and above rated securities issued by Housing Finance Companies (HFCs) registered with National Housing Bank. The total investment/exposure in HFCs will not exceed 25% of the net assets of the Scheme. AMC shall utilize the Sector classification prescribed by AMFI. In case AMFI classification is not available for an issuer, AMC will classify the issuer internally based on the Sector categories specified by AMFI. The Scheme may use derivatives for purposes as may be permitted from time to time. The maximum gross *AA and below rated corporate bonds (excluding AA+ rated corporate bonds) # Debt includes government securities. in securitized debt shall not exceed 50% of the net assets of the Scheme. The Scheme will not invest in foreign securitized debt. Deleted Deleted The Scheme may invest in un-rated debt based on the internal rating assigned to the instruments by the AMC. In assigning the internal rating, the AMC will use its internal proprietary credit appraisal process to evaluate credits. The Scheme will not undertake overseas investments/ invest in foreign securities. The total exposure of the Scheme in a particular sector (excluding investments in Bank CDs, CBLO, G-Secs, T-Bills, short term deposits of scheduled commercial banks and AAA rated securities issued by Public Financial Institutions and Public Sector Banks) shall not exceed 25% of the net assets of the Scheme. Further an additional exposure to financial services sector (over and above the limit of 25%) not exceeding 15% of the net assets of the Scheme will be allowed by way of increase in exposure to AA and above rated securities issued by Housing Finance Companies (HFCs) registered with National Housing Bank. The total investment/exposure in HFCs will not exceed 25% of the net assets of the Scheme. The Scheme may use derivatives for purposes as may be permitted from time to time. The maximum gross
derivative position will be restricted to 50% of the net assets of the Scheme. derivative position will be restricted to 50% of the net assets of the Scheme. However, the cumulative gross However, the cumulative gross exposure from exposure through money market instruments, investment in money market instruments, corporate debts, derivatives, debt instruments etc. will not exceed 100% of the net assets of the Scheme, subject to SEBI circular dated August 18, 2010 w.r.t. investments in corporate debts, derivatives, debt instruments etc. will not exceed 100% of the net assets of the Scheme, subject to SEBI circular dated August 18, 2010 w.r.t. investments in derivatives. derivatives. For the purpose of calculating aggregate asset allocation, derivative exposure to create security wise hedge position will not be included. Corporate debt securities are debt instruments issued by a corporation, the holder of which receives interest from the corporation periodically for a fixed period of time and gets back the principal along with the interest due at the end of the maturity period. All Non-government debt securities are categorized as corporate debt securities. Short term corporate debt is issued primarily as commercial paper whereas long-term debt is issued as bonds. In India the terms Corporate Bonds and Debentures are used interchangeably. Corporate Bonds can be issued by way of public issue where the retail investors as well as institutions can participate in the issue or by way of private placement where only a limited number of investors participate in the issue. Corporate Bonds unlike equity shares don t guarantee an ownership in the Company but give regular income in the form of interest. Corporate Bonds are differentiated on the basis of Maturity i.e. Short Term, Long Term or Term; Coupon i.e. Fixed Rate, Floating Rate or Zero Coupon; Option i.e. Call Option or Put Option; Security i.e. secured by way of a charge on the assets of the borrower or unsecured and Redemption i.e. Single redemption or Amortizing Bonds. In addition to the instruments stated in the table above, the Scheme may enter into repos/reverse repos, other than repo in corporate debt securities, as may be permitted by RBI. From time to time, the Scheme may hold cash. A part of the net assets may be invested in the Collateralised Borrowing & Lending Obligations (CBLO) or Clear corp Repo Order Matching System (CROMS) or repo or in an alternative investment as may be provided by RBI to meet the liquidity requirements. The Scheme may engage in short selling of securities in accordance with the framework relating to short selling and securities lending and borrowing specified by SEBI. The Scheme shall not deploy more than 20% of its net assets in securities lending and not more than 5% of the net assets will be deployed in securities lending to any single counter party. of investment objective of the Scheme, the AMC may park the funds of the Scheme in short term deposits of the scheduled commercial banks, subject to the guidelines issued by SEBI vide its circular dated April 16, 2007, as may be amended from time to time. Subject to the SEBI Regulations, the asset allocation pattern indicated above may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions can vary substantially depending upon the perception of the fund manager; the Corporate debt securities are debt instruments issued by a corporation, the holder of which receives interest from the corporation periodically for a fixed period of time and gets back the principal along with the interest due at the end of the maturity period. All Nongovernment debt securities are categorized as corporate debt securities. Short term corporate debt is issued primarily as commercial paper whereas longterm debt is issued as bonds. In India the terms Corporate Bonds and Debentures are used interchangeably. Corporate Bonds can be issued by way of public issue where the retail investors as well as institutions can participate in the issue or by way of private placement where only a limited number of investors participate in the issue. Corporate Bonds unlike equity shares don t guarantee an ownership in the Company but give regular income in the form of interest. Corporate Bonds are differentiated on the basis of Maturity i.e. Short Term, Long Term or Term; Coupon i.e. Fixed Rate, Floating Rate or Zero Coupon; Option i.e. Call Option or Put Option; Security i.e. secured by way of a charge on the assets of the borrower or unsecured and Redemption i.e. Single redemption or Amortizing Bonds. The Scheme may enter into repos/reverse repos, other than repo in corporate debt securities, as may be permitted by RBI. From time to time, the Scheme may hold cash. A part of the net assets may be invested in the Collateralised Borrowing & Lending Obligations (CBLO) or Clear corp Repo Order Matching System (CROMS) or repo or in an alternative investment as may be provided by RBI to meet the liquidity requirements. The Scheme may engage in short selling of securities in accordance with the framework relating to short selling and securities lending and borrowing specified by SEBI. The Scheme shall not deploy more than 50% of its net assets in securities lending and not more than 10% of the net assets in securities lending to any single counter party. the scheduled commercial banks, subject to the guidelines issued by SEBI vide its circular dated April 16, 2007, as may be amended from time to time. Subject to the SEBI Regulations, the asset allocation pattern indicated above may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions can vary substantially depending upon the perception of the Fund Manager;
intention being at all times to seek to protect the interests of the Unit holders. Such changes in the investment pattern will be for short term and for defensive considerations only. The fund manager will restore asset allocation in line with the asset allocation pattern within 30 days. the intention being at all times to seek to protect the interests of the Unit holders. Such changes in the investment pattern will be for short term and for defensive considerations only. The Fund Manager will restore asset allocation in line with the asset allocation pattern within 3 months. Strategy The Scheme endeavors to generate returns and capital appreciation by predominantly investing in corporate debt securities of varying maturities across the credit spectrum. The Scheme will seek opportunities across the credit curve and will endeavor to take benefit from superior yield by taking on a marginally higher credit risk. The Scheme endeavours to generate steady returns while managing credit risk by investing in corporate debt securities of varying maturities across the credit spectrum. The scheme will seek opportunities across the credit curve and will endeavour to benefit from superior levels of yield by taking on marginally higher credit risk. The Scheme will invest only in debt instruments which are issued by a corporate whose debt programme is rated as investment grade by a credit rating agency. The scheme shall not invest in government securities and State Development Loans but may invest in T-Bills, Repo & CBLO upto the limit stated in the asset allocation pattern. (As per the current rating convention, rating BBB and above is considered as investment grade ). The total exposure of the Scheme in a particular sector (excluding investments in Bank CDs, CBLO, T-Bills, short term deposits of scheduled commercial banks and AAA rated securities issued by Public Financial Institutions and Public Sector Banks) shall not exceed 25% of the net assets of the Scheme. Further an additional exposure to financial services sector (over and above the limit of 25%) not exceeding 15% of the net assets of the Scheme will be allowed by way of increase in exposure to AA and above rated securities issued by Housing Finance Companies (HFCs) registered with National Housing Bank. The total investment/exposure in HFCs will not exceed 25% of the net assets of the Scheme. AMC shall utilize the Sector classification prescribed by AMFI. In case AMFI classification is not available for an issuer, AMC will classify the issuer internally based on the Sector categories specified by AMFI. The Fund Manager will follow an active investment strategy and will take defensive / aggressive positions depending upon the opportunities available in the market at various points in time. The investment team of the AMC will pick credits from the approved list of credits based on credit assessment following a rigorous and in-depth credit evaluation of debt and money market instruments. The credit evaluation monitors the credit worthiness of an issuer and assesses the credit exposure limit. The fund will essentially follow a bottom-up approach while taking into consideration a study of the operating environment of the issuer, past track record and the future prospects of the issuer as well as the short and long term financial health of the issuer. Benchmark The fund manager will follow an active investment strategy taking defensive/aggressive postures depending on opportunities available at various points in time. The investment team of the AMC will pick credits from the approved list of credits based on the credit assessment post the rigorous in depth credit evaluation of debt & money market instruments. The credit evaluation monitors the credit worthiness of an issuer and assesses the credit exposure limit. It is essentially a bottom up approach and includes a study of the operating environment of the issuer, the past track record as well as the future prospects of issuer and short term/ long term financial health of the issuer. 32.5% of CRISIL AAA Long Term Bond Index; 32.5% of CRISIL AAA Short term Bond Index; 17.5% of CRISIL AA Long Term Bond Index; and 17.5% of CRISIL AA Short Term Bond Index. CRISIL AA Short Term Bond Index
Product Label Income and Capital appreciation over medium to long term Provide returns and capital appreciation by investing in corporate debt securities of varying maturities across the credit spectrum in doubt about whether the product is suitable for Income and Capital appreciation over medium to long term s primarily in corporate debt securities of varying maturities across the credit spectrum 4. Invesco India Credit Opportunities Fund Particulars Existing Features/Provisions Proposed Features/Provisions Name of the Invesco India Credit Opportunities Fund Invesco India Fund Scheme Scheme Type An Open-ended Income Scheme An open ended debt scheme investing in money market instruments Objective To generate high level of current income (vis-à-vis treasury bills) consistent with preservation of capital and maintenance of liquidity by investing primarily in investment-grade debt securities and money market To generate superior risk-adjusted returns by investing in. Pattern instruments. Under normal circumstances the asset allocation pattern Indicative Risk Instrument (% of net assets) Profile s Debt Securities* and with average maturity of less than 1 year Debt Securities with average maturity more than 1 year Minimu m Maximu m / 65 100 0 35 to Under normal circumstances the asset allocation pattern Indicative (% of net assets) Risk Profile Minimu Maximum m / * 0 100 *Having maturity upto 1 year Note: The scheme will invest only in debt instruments which are issued by a corporate whose debt programme is rated as investment grade by a credit rating agency. * in securitized debt including pass through certificate shall not exceed 70% of the net assets. The in securitized debt shall not exceed 50% of the net assets of the Scheme. The scheme will not
Text scheme will not invest in foreign securitized debt. invest in foreign securitized debt. in foreign debt securities (including units of overseas mutual fund investing in foreign debt securities / money market instruments) shall not exceed 50% of the net assets. The Scheme may use derivatives for purposes as may be permitted from time to time. The maximum derivative position will be restricted to 50% of the net assets of the Scheme. The cumulative gross exposure through debt and derivative positions shall not exceed 100% of the net assets of the Scheme, subject to provisions of SEBI circular dated August 18, 2010 w.r.t. investment in derivatives. The total exposure of the Scheme in a particular sector (excluding investments in Bank CDs, CBLO, GSecs, T- Bills, short term deposits of scheduled commercial banks and AAA rated securities issued by Public Financial Institutions and Public Sector Banks) shall not exceed 25% of the net assets of the Scheme. Further an additional exposure to financial services sector (over and above the limit of 25%) not exceeding 15% of the net assets of the Scheme will be allowed by way of increase in exposure to AA and above rated securities issued by Housing Finance Companies (HFCs) registered with National Housing Bank. The total investment/exposure in HFCs will not exceed 25% of the net assets of the Scheme. In addition to the instruments stated in the table above, the Scheme may enter into repos / reverse repos as may be permitted by RBI. From time to time, the Scheme may hold cash. A part of the net assets may be invested in the Collateralized Borrowing & Lending Obligations (CBLO) or repo or in an alternative investment as may be provided by RBI to meet the liquidity requirements. The Scheme may engage in short selling of securities in accordance with the framework relating to short selling and securities lending and borrowing specified by SEBI. The Scheme shall not deploy more than 20% of its net assets in securities lending and not more than 5% of the net assets will be deployed in securities lending to any single counter party. the scheduled commercial banks, subject to the guidelines issued by SEBI vide its circular dated April 16, 2007, as may be amended from time to time. in foreign debt securities (including units of overseas mutual fund investing in foreign debt securities / money market instruments) upto 50% of the net assets. The Scheme may use derivatives for purposes as may be permitted from time to time. The maximum derivative position will be restricted to 50% of the net assets of the Scheme. The cumulative gross exposure through debt and derivative positions shall not exceed 100% of the net assets of the Scheme, subject to provisions of SEBI circular dated August 18, 2010 w.r.t. investment in derivatives. The total exposure of the Scheme in a particular sector (excluding investments in Bank CDs, CBLO, G-Secs, T-Bills, short term deposits of scheduled commercial banks and AAA rated securities issued by Public Financial Institutions and Public Sector Banks) shall not exceed 25% of the net assets of the Scheme. Further an additional exposure to financial services sector (over and above the limit of 25%) not exceeding 15% of the net assets of the Scheme will be allowed by way of increase in exposure to AA and above rated securities issued by Housing Finance Companies (HFCs) registered with National Housing Bank. The total investment/exposure in HFCs will not exceed 25% of the net assets of the Scheme. The Scheme may enter into repos / reverse repos as may be permitted by RBI. From time to time, the Scheme may hold cash. A part of the net assets may be invested in the Collateralized Borrowing & Lending Obligations (CBLO) or repo or in an alternative investment as may be provided by RBI to meet the liquidity requirements. The Scheme may engage in short selling of securities in accordance with the framework relating to short selling and securities lending and borrowing specified by SEBI. The Scheme shall not deploy more than 50% of its net assets in securities lending and not more than 10% of the net assets will be deployed in securities lending to any single counter party. the scheduled commercial banks, subject to the guidelines issued by SEBI vide its circular dated April 16, 2007, as may be amended from time to time. Subject to the SEBI Regulations, the asset allocation pattern indicated above may change from time to time, Subject to the SEBI Regulations, the asset allocation pattern indicated above may change from time to time, keeping in view market conditions, market keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions can vary substantially depending upon the perception of the fund manager; the intention being at all times to seek to protect the interests of the Unit holders. Such changes in the investment pattern will be for short term and for defensive considerations only. The fund manager will restore asset allocation in line with the asset allocation pattern within 3 months. opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions can vary substantially depending upon the perception of the Fund Manager; the intention being at all times to seek to protect the interests of the Unit holders. Such changes in the investment pattern will be for short term and for defensive considerations only. The Fund Manager will restore asset allocation in line with the asset allocation pattern within 3 months. Portfolio construction is conducted on the basis of the Portfolio construction is based on a desired level of
Strategy desired level of credit exposure, based on top down economic analysis and assessment of corporate credit risk. credit exposure using top-down economic analysis and the assessment of corporate credit risk. The Scheme shall seek opportunities in the rapidly increasing use of debt markets by corporates across the credit spectrum. The Scheme focuses on enhancing the portfolio returns by identifying optimum credit opportunities in the market i.e. by investing in instruments that offer superior yield (vis-à-vis treasury bills) at acceptable levels of risk. The Scheme shall seek opportunities in the market driven by progressive use of debt instruments by corporates across the credit spectrum. The Scheme focuses on enhancing portfolio returns by identifying optimum credit opportunities in the market i.e. by identifying instruments that offer superior riskadjusted returns. The key element of this approach is to possess the ability to analyse and appropriately price-in the credit risk for short-term securities. The key element of this approach is having the ability to analyse and appropriately price credit risk for predominantly short dated securities. The Scheme may assume higher credit risk as compared to a scheme investing predominantly in AAA bonds / sovereign securities. The Scheme does not intend to take aggressive interest rate risk and would therefore primarily invest in short term securities. The value addition would be made by focusing on enhancing the portfolio returns by identifying mispriced credit opportunities in the market and selectively investing in The Scheme will invest only in debt instruments which are issued by a corporate whose debt programme is rated as investment grade by a credit rating agency. These instruments may also be unrated in nature. The AMC will be guided but not limited by the ratings of Rating Agencies such as CRISIL, CARE, ICRA and Fitch or any other rating agencies that may be registered with SEBI from time to time. The Scheme shall be actively managed and the Fund Management team shall formulate view of the credit quality, interest rate movement etc. by monitoring various parameters of the Corporates / Indian economy, as well as developments in global markets. The Scheme does not intent to take aggressive interest rate risk and would therefore primarily invest in shortterm securities. The Scheme will focus on enhancing the portfolio returns by identifying mis-priced credit opportunities in the market and selectively invest in The Scheme will invest only in instruments that are issued by corporates whose debt programme is rated as 'investment grade' by a credit rating agency. These instruments may also be unrated in nature. The AMC will be guided, but not limited by the ratings of the Rating Agencies such as CRISIL, CARE, ICRA and Fitch or any other rating agencies that may be registered with SEBI from time to time. views / decisions inter-alia will be based on the following parameters, which will be within the investment guidelines of the Scheme: Quality of the issuer Returns offered relative to alternative investment opportunities Tenure of the instrument Prevailing interest rate scenario Liquidity of the security Any other factors considered relevant in the opinion of the fund management team. views / decisions interalia may be taken on the basis of the following parameters and which will be within the investment guidelines of the scheme: Quality of the security / instrument (including the financial health of the issuer) Returns offered relative to alternative investment opportunities Maturity profile of the instrument Prevailing interest rate scenario Liquidity of the security Any other factors considered relevant in the opinion of the fund management team. Benchmark CRISIL Liquid Fund Index CRISIL Liquid Fund Index