Invesco India Technology Fund

Invesco India Technology Fund has delivered a 1Y SIP XIRR of just 1.75%, sharply underperforming the category average SIP XIRR of 13.57% over the same period. Calendar year returns have been inconsistent, with 5.59% in 2024, -4.99% in 2025, and only 0.4% in 2026 so far. The 1Y rolling return mean of 0.03% further confirms muted lump-sum performance over the past year.

The fund's maximum drawdown of -0.28% with a 112-day duration and no completed recovery suggests a prolonged period of flat-to-negative returns rather than a sharp crash, though one drawdown event exceeding 10% has occurred historically. The 1Y Calmar ratio of 0.0011 indicates very weak risk-adjusted returns, as returns have barely compensated for drawdown risk. Investors should recognize that sectoral funds like this one carry inherently higher volatility than diversified equity funds.

The portfolio is heavily concentrated in IT-Software at 44.3% of NAV, led by Infosys (9.6%), Tech Mahindra (7.99%), and Coforge (7.48%). Non-IT exposure includes Retailing at 13.0% (Eternal, Nykaa, Meesho), Capital Markets at 7.0%, and Telecom at 5.7%, providing some diversification beyond pure IT. With only 23 total holdings, the fund is fairly concentrated, which is typical for a sectoral offering but amplifies single-sector risk.

The fund trails the category average SIP XIRR by a wide margin across the 1Y horizon (1.75% vs 13.57%), placing it in the bottom tier of sectoral peers over the recent period. Calendar year returns show inconsistency, alternating between modest gains and losses over 2024-2026. Without longer-horizon XIRR data for the fund itself, a full multi-year comparison against category averages of 17-18% is not possible, but recent performance suggests meaningful underperformance.

This fund is suitable only for experienced investors with high risk tolerance who want a tactical, satellite allocation to the technology and digital-consumption theme, ideally capped at 5-10% of their equity portfolio. A time horizon of at least 5-7 years is advisable given the sector's cyclical nature and the fund's current weak momentum. Investors seeking steady, diversified returns should avoid sectoral funds like this one.

• Low expense ratio of 0.82% for a sectoral fund, which helps net returns over long holding periods
• Exposure to a diversified technology theme spanning IT services, e-commerce retail, capital markets, and telecom rather than pure IT alone
• Top holdings include established large-caps like Infosys and Bharti Airtel alongside mid-cap growth names like Coforge and Persistent Systems

• Severe 1Y underperformance with SIP XIRR of 1.75% versus the category average of 13.57%
• Heavy sector concentration in IT-Software at 44.3% of NAV exposes investors to a single sector cycle
• Weak risk-adjusted returns, with a 1Y Calmar ratio of just 0.0011 and a 112-day drawdown that has not yet recovered