NFO Opens: 29^thJune2021; Closes: 13^thJuly2021

Mumbai (Maharashtra) [India,] June 29:  Invesco Mutual Fund announces the launch of its new fund Invesco India Medium Duration Fund – An open-ended medium-term debt scheme investing in instruments such that the Macaulayduration^ of the portfolio is between 3 years and 4 years.

Invesco India Medium Duration Fund seeks to generate income by investing in a portfolio of debt and money market securities. The fund would be constructed following a detailed assessment of liquidity, interest rate view, and credit environment.

Over 75% – 85% of exposure will be to ‘AAA’ rated Corporate and Government Securities (G-Secs including SDLs). With an aim to enhance portfolio yield, the fund will invest 15% – 25% of the net assets in very select ‘AA’ category corporate bonds and will utilize its in-house proprietary credit assessment framework to select such issuers. The fund will also aim to identify issuers, which are expected to witness improvement in their credit metrics. Such selected issuers will not only provide the benefit of high accrual, to begin with, but also the mark to market gains opportunity with credit spread compression. The fund will not invest in bonds that are rated below AA-. At all times, the Scheme will target securities, which can offer an optimal level of yields/returns, while giving due emphasis to its risk-reward characteristics^.

Speaking at the launch, Mr. Saurabh Nanavati, Chief Executive Officer, Invesco Mutual Fund said, “Fixed-income investments play a vital role in every investment portfolio, besides generating stable income they also help in reducing overall portfolio risk as they are less volatile and have a low correlation with equity market returns.”

“New Fund Launch is aimed at capturing the current market opportunities both on the yield curve as well as on the credit market. If you look at the current fixed income markets, the yield curve has steepened during the pandemic; at the short end, yields have moved sharply lower on account of ample systemic liquidity & accommodative monetary policy stance; while the long end of the curve has still remained elevated due to higher fiscal concerns, though anchored by RBI through various tools like Government Securities Acquisition Program (G – SAP). With this backdrop in mind, we believe the 3- 5 years segment which offers high accrual presents itself as an attractive investment opportunity from a risk-reward perspective. Investors with a medium to a long term horizon with moderate risk appetite can consider investing in this fund.”

The minimum investment amount during the NFO is Rs. 1,000/- and in multiples of Re. 1/- thereafter. For SIP investments, the minimum application amount is Rs. 1,000/- per month and Rs. 2,000/- per Quarter and in multiples of Re. 1 thereafter.

No Exit load will be charged. The fund is benchmarked to CRISIL Medium Term Debt Index and will be managed by Vikas Garg and Krishna Cheemalapati.

The New Fund Offer (NFO) is open for subscription from June 29, 2021, and will close on July 13, 2021.

^Disclaimer: The above strategy is based on current views and market conditions and is subject to change from time to time.

About Invesco Asset Management (India) Private Limited 

Invesco Asset Management (India) is one of the leading asset management companies in India. With over INR 48,451 crores of assets under management across Mutual funds, PMS, and Offshore Advisory (for the quarter ending March 2021), we serve the investment needs of individual investors, corporate and institutions through mutual funds and sub-advised portfolios. Our expertise extends across equity, fixed income, and alternative asset classes where we offer the complete range of funds designed to suit investment needs. IAMI aims to provide top-class financial care, impeccable service, and best-in-class investment products.

For more details visit invescomutualfund.com

About Invesco Ltd

Invesco is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. NYSE: IVZ; www.invesco.com

Invesco India Medium Duration Fund

(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) suitable for investors who are seeking* income over the medium term investments predominantly in debt and money market instruments with portfolio Macaulay duration of 3- years

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

Note: The product labelling assigned during the NFO is based on internal assessment of the Scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made.

^Please refer to the heading ‘C. Asset Allocation Pattern’ under Section ‘II. Information about the Scheme’ of Scheme Information Document where the concept of Macaulay duration has been explained

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

For further information, please contact

Haresh L Sadani, Director – Marketing & Products, Invesco Asset Management (India) Private Limited

Nidhi Sampat, Manager – Marketing, Invesco Asset Management (India) Private Limited