Invesco India Tax Plan (D)

Performance

Invesco Limited is an asset management company that was originally established in the U.S. The firm now has offices in 25 countries and has close to 7,000 employees. The firm manages assets worth over $960 billion for its investors. Invesco specialises in managing a wide range of assets that differ in terms of investment styles, classes, and geographical borders.

Invesco India is the Indian branch of Invesco Limited and, as of June 2018, manages assets worth over Rs.24,900 crore for its clients. The aim of Invesco India is to meet the financial needs of its investors both within and and beyond the country’s borders. Invesco India has a wide range of schemes that it offers its investors and has a dedicated management team for each product’s portfolio.

Invesco India offers its clients a wide variety of funds to invest in. The firm offers equity funds, fixed income funds, exchange traded funds and hybrid funds. One of the schemes offered under the equity linked schemes is the Tax Plan. Investors can specify the option based on their preference of either growth or dividend. The default option when investing in this scheme is the growth option. The dividend option ensures that the investor receives a payout after a given period of investment.

Investment Objective of the Invesco India Tax Plan- Dividend

The investment objective of the Invesco India Tax Plan is to create long-term capital appreciation through a diversified portfolio that consists primarily of equity and equity-related investment options. However, the scheme does not assure returns.

Features of the Invesco India Tax Plan- Dividend

The following are the features of the Invesco Tax Plan- Dividend:

Investment amount for Invesco India Tax Plan- Dividend

The scheme comes with certain limitations with regard to the amount that can be invested.

Asset allocation for Invesco India Tax Plan- Dividend

Who can invest in the Invesco India Tax Plan- Dividend

The following is a list of individuals and entities who are eligible to invest in the Invesco India Tax Plan- Dividend:

• Resident individuals
• Partnership firms
• Banks and financial establishments
• Hindu Undivided Family (HUF)
• Public Sector Undertakings (PSUs), Corporates, and societies
• Charities or religious institutions
• Non-Resident Indians (NRIs)
• Scientific and Industrial Research Organisations
• Proprietorship in the name of the sole proprietor
• International Portfolio Investors registered with SEBI
• Minors (via a parent or legal guardian)

NAV Disclosure and Benchmark for Invesco India Tax Plan- Dividend

NAV: NAV is calculated on a daily basis by the AMC. The details of the NAV are published before 9pm on all business days. In cases where there is a delay in publishing of the NAV, the AMC will issue an official press release stating reasons for the delay.

Liquidity: The units allotted can be redeemed on all business days. The proceeds are dispatched within 10 business days from the date on which the redemption request was approved.

Benchmark Index: The benchmark index for the Invesco India Tax Plan is the S&P BSE 200. The performance of the scheme is compared with this benchmark index.

Fund managers: The following individuals are the fund managers for the Invesco India Tax Plan:

• Amit Ganatra: Amit Ganatra has more than 15 years of experience in dealing with the workings of the Indian equity markets. He has been handling the scheme since January 2007.
• Dhimant Kothari: Dhimant Kothari has been managing the scheme since January 2007. He has more than 12 years of experience in dealing with the Indian equity markets.

Investment Restrictions of Invesco India Tax Plan- Dividend

The nvesco India Tax Plan- Dividend comes with a few restrictions, some of which are listed below:

• Investments made under the scheme towards securities or units offered by Venture Capital Funds shall not exceed 10% of NAV.
• The amount invested in unlisted equity shares and equity related instruments of Venture Capital Funds cannot exceed more than 5% of the NAV.
• There is 10% limit on the paid up capital that a mutual fund can own under all the schemes that it offers.
• Investments made through the scheme in other mutual funds cannot have any fees charged. This applies when the aggregate inter-scheme investment made by all schemes under the same AMC does not exceed 5% of the NAV of the fund.
• Investments cannot be made in any unlisted securities of a sponsor’s associate company or group company.
• The scheme is restricted from making any investments in securities that are issued via private placement of the sponsor’s associate company or group company.
• Restrictions are placed on investments made in the listed securities of the sponsor’s group company. The investment cannot exceed 25% of the net assets.
• For long-term investments, all securities purchased should be transferred under the name of the Mutual Fund of the concerned scheme.
• Transfer between schemes is permitted on the grounds that the transfers are made at the prevailing market price on spot basis for the quoted instruments.
• Transfer of schemes is permitted if the securities conform with the new scheme’s investment objective.
• Investment in fund of funds schemes is not permitted.
• WIth reference to investments made in derivatives, the cumulative gross exposure to debt, equity, and derivative positions cannot exceed 100% of the scheme’s NAV.
• Investment in derivatives that have cash or cash equivalents with a residual maturity below 91 days cannot be treated as creating exposure.

Dividend Policy of Invesco India Tax Plan- Dividend

The dividend policy of the Invesco India Tax Plan is dependent on the declaration made by the Trustees. The declaration of the dividend is calculated based on the amount of the distributable surplus. The distributable surplus should be in accordance with the guidelines set by SEBI. The frequency at which the dividends are distributed depends on the availability of the distributable surplus. The decision for frequency of payments and amount paid is based on the sole discretion of the Trustees. Assurance with regard to dividend rate and frequency of payments is not certain.

Other facilities offered by Invesco India Tax Plan- Dividend

• Top-up facility for SIP

This facility allows investors to increase the amount in their SIP installment. This facility can be availed at bi-annual and annual intervals. The minimum top up amount is set at Rs.500.

• SIP pause facility

This facility allows investors to temporarily discontinue their contribution to their SIP.

• SIP modify facility

This facility allows investors to change the scheme, option, or plan of their SIP.

Why you should invest in the Invesco India Tax Plan- Dividend

The Invesco India Tax Plan is ideal for investors who are looking to generate wealth over the long term. Investors can choose from the Dividend and Growth plans available. Additionally, investors have the benefit of claiming tax deductions up to Rs.1.5 lakh under Section 80C of the Income Tax Act.

GST rate of 18% applicable for all financial services effective July 1, 2017.