Invesco India Consumption Fund has raced to a 10% alpha over peers in its first 11 months – aiming for a top of the league table performance when it completes its 1st year in Oct 2026.
Attribution analysis shows that there are 10 stocks from different sectors that have meaningfully contributed to this sizeable outperformance.
The fund is broadly allocated a third each into monopolies/oligopolies, challengers and aggregators – a unique classification framework that Manish spelt out at launch and has stuck with as his core portfolio allocation strategy.
The fund’s portfolio has consistently maintained around 65% active share vs benchmark – which is quite a feat considering it is a thematic/sectoral fund and not a broad market one.
Manish says a combination of stock selection as well as stock elimination has helped performance: taking clear calls not to invest in some peer-favourite consumption heavyweights has been a key alpha contributor.
Manish makes an important distinction between overall demand and breadth of demand. Overall demand is not a concern right now –though breadth of demand could be. While inflation will impact some segments more than others, there is also a wealth effect across asset owners over the last 5-6 years – be it real estate or gold or equities.
Manish says the key to success in the consumption space is relevance: tap a latent consumer need or show them an incremental benefit –and you will not have any paucity of demand. He takes us through several examples across diverse businesses from automobiles to entertainment to make this point.
Understanding the pulse of each company and how well it is connecting with emerging consumer choices and trends is the key to spotting the big winners in India’s consumption space.
Manish summarizes his stock picking lens as follows: identify companies that are attracting time share of target consumers. Once you get time share, you get mind share. Then if you have got your execution engine in place, you will be able to convert mind share into revenue share, which will then lead to profit share and result in that company getting market cap share in its segment.
Find a way to make yourself relevant to the consumer, back that up with strong execution – and you become a winner in the exciting Indian consumption space. Manish focuses a lot of his time in identifying stocks that are in their early stages of this growth journey.