New Fund Offer (NFO) News: Invesco Mutual Fund on Thursday launched Invesco India Manufacturing Fund, an open-ended equity scheme focused on the theme of domestic manufacturing. During the new fund offer (NFO), open from July 25 to August 8, the minimum investment amount is Rs 1,000, and for SIP investments, the minimum application amount is Rs 500 – both amounts in multiples of Re 1 thereof, according to a press release by the fund house.

Here are 10 key things to know about Invesco India Manufacturing Fund: 

  • NFO Opening and Closing Dates: The NFO opened on July 25 and closes on August 8. 
  • Where will the fund invest? Invesco India Manufacturing Fund will invest 80-100 per cent in equity and equity-related instruments of companies following the manufacturing theme. 
  • Goal: This fund is designed to capitalise on the tremendous growth potential within the country's manufacturing sector. It will invest across market capitalisations with an aim to have a well-diversified portfolio of 50-60 stocks.
  • Benchmark: The fund will be benchmarked to Nifty India Manufacturing TRI. 
  • Fund managers: The fund will be managed by Amit Ganatra and Dhimant Kothari.
  • Why the manufacturing focus? “The manufacturing sector stands at the cusp of a significant transformation, driven by robust domestic demand, global supply chain realignments, stable inflation and interest rates, and supportive government policies. The government is actively implementing policies, incentives, subsidies, lowering corporate tax rates, and increasing capital expenditures to position India as a global manufacturing hub,” said Amit Ganatra, Head of Equities and Fund Manager, Invesco Mutual Fund. 
  • These factors collectively position India as a promising destination for manufacturing investments, poised for robust growth in the coming years, Ganatra added. 
  • What makes Invesco India Manufacturing Fund special? “With a large pool of entrepreneurial talent and substantial export potential, the sector offers immense opportunities for investors. Initiatives like ‘Make in India’ and infrastructure development, along with competitive advantages in labour, energy, land, capital, and entrepreneurship will further bolster this sector,” according to Ganatra. 
  • Meanwhile, the Budget 2024-25, presented by the finance minister on July 23, gives special attention to MSMEs and manufacturing, particularly labour-intensive manufacturing, with a comprehensive package covering financing, regulatory changes, and technology support. 
  • Exit Load: An exit load of 0.50 per cent for units redeemed or switched out on or before three months from the date of allotment will apply. No exit load will be charged if units are redeemed or switched out after three three-month period.