Updated: Feb 26, 2021 16:05 IST
Mumbai (Maharashtra) [India] February 26 (ANI/PNN): Invesco Mutual Fund announces the launch of its new fund Invesco India ESG Equity Fund, (an open ended equity scheme investing in companies following Environmental, Social and Governance (ESG) theme).
The fund aims to generate capital appreciation by investing 80 per cent – 100 per cent of the net assets in equity and equity instruments of companies, which are selected based on Environmental, Social and Governance (ESG) criteria, as defined by our proprietary investment framework. The fund will adopt a bottom-up approach to select stocks.
While the fund will invest the majority of its assets in large cap companies; it will also offer limited exposure of up to 35 per cent to mid and small cap companies1. The fund is benchmarked to the NIFTY 100 Enhanced ESG Index and will be managed by Taher Badshah, who has over 26 years of experience and Amit Nigam, who has over 20 years of experience in the Indian equity markets.
Note – 1The above strategy is based on current views and is subject to change from time to time.
In today’s socially conscious society, we expect companies to care about environment, society and have high standards of governance. And as consumers, we exercise our voice through the products and services we consume.
Investors globally consider ESG factors to evaluate where the company has risks because of environment, social and governance issues. For companies today, the risks which originate from environment, social and governance issues are real.
Disregarding ESG values can have a serious impact on the company’s operations, profits, and shareholder value. From an investment point of view, it is important to evaluate where the company faces the risk on account of ESG parameters, as ignoring these risks can have far-reaching consequences.
“As a firm, we have been demonstrating our commitment globally to responsible investing by actively encouraging ESG inclusive practices across every area of business. Globally, there is a big difference between being ESG “Aware” and ESG “Inclusive”. Our ESG inclusive practices are at the core of our equity investment process, which differentiates us,” said Saurabh Nanavati, Chief Executive Officer, Invesco Mutual Fund said, speaking at the launch.
“It is important to analyze a company through the ESG lens. Governments and society are penalizing irresponsible companies. On the other hand, companies with strong ESG proposition are creating value through increased top-line growth, lower costs of production, better financing terms, government support & subsidies, motivated employees and enhanced returns on capital invested, which in turn help investors in long term wealth creation.”
“First time investors can embark on their investment journey with this new fund and embrace responsible investing from day one”
Invesco and ESG1
– 32 years journey of sustainable investing
– Managing USD 34.5 bn across 44 ESG funds and segregated mandates globally (managed by our global firm)
– Signatories to the UN sponsored Principles for Responsible Investment (PRI)
– Lead Investor in Climate Action 100 plus
– ESG advocacy through industry associations and participation in policy efforts
1 The details referred above are of our global firm. Source: Invesco; Data as on 31 December 2020.
The minimum investment amount during the NFO is Rs 1000/- and in multiples of Rs 1/- thereafter. For SIP investments, the minimum application amount is Rs 500/- and in multiples of Rs 1 thereafter.
No exit load will be charged, if upto 10 percent of the units are redeemed/ switched out within 1 year from the date of allotment. If more than 10 percent of the units are redeemed/switched out within 1 year from the date of allotment, exit load of 1 percent will be charged. No exit load will be charged for units redeemed/switched after 1 year from the date of allotment.
The New Fund Offer (NFO) is open for subscription from February 26, 2021, and will close on March 12, 2021.
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