Invesco PSU Equity Fund (An open ended equity scheme following PSU theme)

Suitable for investors who are seeking*: . capital appreciation over long-term . investments predominantly in equity and equity-related instruments of Government companies (PSU’s)

* Investors should consult their financial advisers if in doubt about whether the product is suitable for them Why PSUs make a compelling investment opportunity?

1. Operate in ‘Cyclical’ Core sectors - Majority of PSUs operate in the ‘Cyclical’ core sectors, which benefit from pickup in economic activity.

2. Unique propositions/ first mover advantages – Many PSU companies have unique proposition either because of access to resources or first mover advantage.

3. Beneficiary of government policy initiatives- PSU companies are beneficiary of Governments’ strategic interest and reforms. Example - greater autonomy to Oil Marketing Companies (OMCs), strengthening of legal framework to debt resolution/recovery, etc.

4. Improvement in share holder rewards generally in form of dividend and buy-backs- Improving shareholder rewards through share buy-back & dividends, which helps to further strengthen Return on Equity (RoE).

5. ‘Monetise or modernize’ - Higher fiscal deficit would require support from disinvestment, which can unlock value for shareholders. The Government is also emphasizing on modernization, which if materialized can add significant value.

6. Favorable valuations1- PSU stocks are presently much cheaper relative to the broad market - 61% discount to S&P BSE Sensex.

1Data as at February 28, 2021. Please refer slide ‘Favorable valuations’ for details.

2 1. PSUs - Operate in cyclical ‘core’ sectors These sectors tend to benefit as economic recovery picks up

S&P BSE PSU Invesco India PSU Equity Fund S&P BSE Sensex 1% 2% 1% 2% 3% 3% 3% 2% 5% 12% 10% 29% 7% 35% 8% 43% 12% 23% 13%

15% 26% 25% 17%

Financials Financials Utilities Information Technology Energy Financials Energy Utilities Consumer Staples Industrials Consumer Discretionary Industrials Materials Industrials Materials Energy Communication Services Consumer Discretionary Health Care Consumer Discretionary Utilities Cash & Cash Equivalent Materials

S&P BSE PSU & the Fund hold stocks largely operating in the cyclical sectors as compared to Sensex that has only 26% of its constituents from the cyclical sectors

Source: Bloomberg. Internal. Data as on 28 February 2021. Benchmark- S&P BSE PSU TRI. Disclaimer: The sectors referred above are for information and / or illustration purpose only and should not be construed as recommendation from Invesco Asset Management (India) Private Limited/Invesco Mutual Fund. The Scheme may or may not have any present or future positions in these sectors. 3 2. PSUs offer unique propositions and can have first mover advantage

Companies Key investment proposition Corporation (HPCL), Bharat Large non-replicable fuel retail network Petroleum Corporation (BPCL), (IOC) GAIL, Indraprastha Gas, , Petronet Large non-replicable gas network LNG, Gujarat State Petronet Indian Railway Catering &Tourism Corporation Railway e-ticketing exclusivity (IRCTC) Container Corporation of India Large non-replicable container logistics network Largest coal reserves Manganese Ore (India) (MOIL) Largest manganese reserves in India Limited (SAIL) Captive iron ore mines State (SBI) Largest branch network National Thermal Power Corporation (NTPC) Largest thermal power capacity with linkage to low cost coal Power Grid Large non-replicable power grid network Indigenous source of high value metals for industries like defense and space where private participation is restricted due to critical nature / national interest Cochin Shipyard Indigenous shipyard for naval ships where private participation is restricted due to critical nature / national interest Source: Invesco Asset Management (India) Disclaimer: The stocks / sectors referred above should not be construed as recommendations, advice to buy, sell or in any manner transact in this stock and neither should it be considered as Research Report from Invesco Asset Management (India) Private Limited and/or Invesco Mutual Fund. The Scheme may or may not have any present or future positions in these stocks / sectors. The above portfolio allocation is subject to change without any prior notice. 4 3. PSUs- beneficiaries of government’s policy initiatives Few reform initiatives which help PSUs

. Fuel price deregulation

. Direct Benefit Transfer

. Pradhan Mantri Jandhan Yojna

. Pradhan Mantri Aawas Yojna

. Ujjwal DISCOM Assurance Yojana

. Pradhan Mantri Ujwalla Yojana

. Insolvency and Bankruptcy Code

. Atmanirbhar Bharat

5 6 Disclaimer: Bloomberg. Source: future in sustained be not may or may performance Past and buy-backs dividend inshareholder rewardsinformof Improvement - 4. PSUs Dividendin % 10% 20% 30% 40% 50% 60% The above details are for information and / or illustration pur illustration or / and information for are details above The 0%

Y1 Y1 Y1 Y1 Y9FY20 FY19 18 FY FY17 16 FY FY 15 34.39%

36.50%

47.16% . 29.33% S&P BSE PSU BSE S&P pose only. pose

57.19%

32.26% S&P BSE Sensex BSE S&P

52.59%

28.12%

41.39%

30.55%

54.52%

43.94% 5. PSUs- beneficiaries of government’s disinvestment agenda Value unlocking opportunity for investors

. The government has made a strong pitch for privatisation of public sector units saying that “government has no business to be in business’’, emphasizing on mantra of ‘Monetise or Modernise’

. In FY18 and FY19, Government has been able to meet its divestiture target

. Government has raised ~Rs 4.9 trillion worth so far; of which Rs 2.35 trillion was divested in just last three years.

. 22 new IPO’s have come for listing over past five years which have offered new investment avenues for investors

. During FY20, Rs. 50,299 crores has been raised through disinvestment transactions

. Covid-19 has worsened the fiscal situation and government has limited levers on revenue receipts. Here, disinvestment programme can come to rescue

. Government has set an ambitious disinvestment target of Rs. 1.75 trillion for FY22

Data source: Department of Investment and Public Asset Management (DIPAM)/Union Budget 7 8 Estimates. BE: Budget Product. Gross Domestic GDP- amid elevatedfiscal deficit Disinvestment iskeystrategic priority thegovernment for 10,000 12,000 14,000 16,000 18,000 20,000 2,000 4,000 6,000 8,000 0 4.9 FY13 4,902

FY14 5,029 4.5 Fiscal deficit (Rs.Billion)-LHS

FY15 5,107 4.1 RE: Revised Estimates. Revised RE:

FY16 5,328 3.9 3.5 Source: MOFSL- Motilal Oswal Financial Services Ltd. Services Financial Oswal Motilal MOFSL- Source: FY17 5,356 3.6

Fiscal Deficit (%ofGDP)-RHS FY18 6,079 3.5 FY19 6,589

FY20 9,348 4.6 9.5 FY21RE 18,487 6.8 FY22BE 15,068 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 Privatization of PSUs is gaining momentum with government’s intent of minimizing its presence in non- strategic sectors

Non- Strategic sectors: CPSEs to be privatized or closed

Atomic energy, Space and 1 Defence

Transport and Strategic sectors: 2 Telecommunications Bare minimum presence of CPSEs Power, Petroleum, Coal and 3 other minerals

Banking, Insurance and 4 financial services

. Government objective is to minimize presence of CPSEs including financial institutions and create new investment space for private sector.

Source: Budget speech. CPSE: Central Government Public Sector Enterprise. 9 Government’s strategic disinvestment policy- key highlights

. Receipts estimated from disinvestment in BE 2021-22 at Rs. 1,75,000 crores.

. Government aims to complete a number of divestment transactions namely BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam limited among others in 2021-22.

. To bring the IPO of LIC in 2021-22.

. To take up the privatization of two Public Sector Banks (other than the IDBI Bank) and one General Insurance company in the year 2021-22.

. To fast forward the disinvestment policy, NITI Aayog to work out on the next list of Central Public Sector companies that would be taken up for strategic disinvestment.

Source: Budget speech. 10 6. Favorable valuations- PSUs are currently trading at a significant discount relative to Sensex and their long term valuation multiples

Sensex versus S&P BSE PSU (trailing twelve months) Sensex versus S&P BSE PSU P/B Ratio (trailing twelve months) (Based on adjusted positive P/E) 4.4 30 3.9 10 Years Average: 2.83x 25 3.4 10 Years Average: 19.81x

20 2.9

2.4 15 10 Years Average: 11.20x 1.9 10 Years Average: 1.37x 10 1.4

5 0.9

0 0.4 Jul-11 Jul-12 Jul-13 Jul-16 Jul-13 Apr-15 Apr-16 Apr-17 Jan-21 Jan-20 Jan-19 Jan-18 Feb-11 Mar-12 Mar-13 Mar-14 Apr-16 Oct-17 Apr-19 Apr-13 Oct-14 Oct-11 Oct-20 Nov-11 Nov-12 Sep-20 Sep-19 Sep-18 Nov-13 Aug-14 Dec-14 Aug-15 Dec-15 Aug-16 Dec-16 Aug-17 Jun-17 Jun-14 Jan-15 Jun-11 Jan-12 Jun-20 May-20 May-19 May-18 Mar-17 Feb-18 Mar-14 Feb-11 Mar-20 Feb-21 Dec-15 Nov-16 Dec-18 Dec-12 Nov-13 Nov-19 Sep-15 Sep-18 Aug-12 Aug-19 May-15 May-18 May-12

PSU Sensex PSU Sensex

. Current valuations of PSU index are at 11.98 x (P/E - trailing twelve months) earnings versus 30.40x (P/E - trailing twelve months) earnings for Sensex; this translates into a 61% discount to S&P BSE Sensex as compared to 43% discount to S&P Sensex for 10 years average. . Current valuations of PSU index are at 1.09x (Price to Book ratio) versus 3.60x (Price to Book ratio) for Sensex; this translates into a 70% discount to S&P BSE Sensex as compared to 54% discount to S&P Sensex for 10 years average. Past Performance may or may not be sustained in future. Source: Bloomberg. Data as at February 28, 2021. The long term average period of 10 years is broadly in line with fund’s tenure. Note: P/E Valuations are based on adjusted positive P/E, which excludes loss making companies. P/E: Price to earning. P/B: Price to Book. Disclaimer- The above chart is for illustration purpose only and shouldn’t be used for the development or implementation of an investment strategy. It should not be construed as investment advice to any party or construed as a promise on minimum returns and safeguard of capital. Invesco Asset Management (India) Pvt. Ltd. is not guaranteeing or promising or forecasting any returns. 11 Presenting Invesco India PSU Equity Fund (An open ended equity scheme following PSU theme) Invesco India PSU Equity Fund – The Opportunity

Fund owns our high conviction PSU stock ideas, filtered from our internal stock categorization framework

Value accretion/ Beneficiaries Improved Core cyclical Unique Attractive of dividend new sector business valuations government payouts/buy investment companies prepositions policies backs opportunities through divestment

13 Portfolio Construction Guidelines

. The fund follows a bottom-up investment approach to select PSU stocks

. It takes minimal exposure to stocks having leveraged balance sheet

. It strives to select fundamentally sound PSUs that are dominate players and have the potential to deliver superior growth and ROE

. The fund has the flexibility to hold companies which subsequently may get privatized or where the Government shareholding gets reduced through the process of divestment

. Style neutral approach with no market capitalization bias

ROE- Return on Equity

14 Stock Selection : Key to drive Alpha

5 Year CAGR Performance of ‘Stocks’ constituted in the S&P BSE PSU vs. those held in the Invesco India PSU Equity Fund S&P BSE PSU Invesco India PSU Equity Fund 60% 45% 40% 40% 35% 30% 20% 25% 20% 0% 15% 10% -20% 5% 0% -40% ITI Ltd ITI MOIL Ltd NTPC Ltd Moil Ltd IFCI Ltd IFCI Sjvn Sjvn Ltd REC Ltd NMDC Ltd Uco Bank NTPC Ltd BEML Ltd NHPC Ltd NMDC Ltd MMTC Ltd Ltd Nlc India Ltd Gail India Ltd Bank Of India Coal India Ltd Ltd NBCC India Ltd Gujarat Ltd Gas Petronet LNG Ltd Can Fin Homes Ltd Indian Oil Corp Ltd Engineers India Ltd Indraprastha Gas Ltd Ltd Ltd Steel Authority Of India Indian Overseas Bharat Ltd Electronics Gujarat Narmada Valley… Steel Authority Steel Authority Of India Balmer Lawrie Balmer Lawrie & Co Ltd Bharat Heavy Bharat Heavy Electricals Gujarat State Ltd Petronet Hindustan Petroleum Corp National Aluminium Co Ltd Corp Ltd Hindustan Petroleum Corp Shipping Corp Of India Ltd National Aluminium Co Ltd Bharat Petroleum Corp Ltd Container Corp Of India Ltd Oil & Natural Oil & Natural Corp Ltd Gas Power Power Finance Corporation India Tourism Development Container Corp Of India Ltd Jammu Kashmir & Jammu Ltd Bank Mangalore Refinery & Petro Power Grid Corp Of India Ltd Chennai Petroleum Corp Ltd Power Power Grid Corp Of India Ltd Gujarat Mineral Dev Corp Ltd Rashtriya Rashtriya Chemicals & Fertilizer Strike Rate: ~100% of the companies held in the Invesco India PSU Equity Fund delivered positive returns over five years period vs. ~60% of constituents of the S&P BSE PSU Past performance may or may not be sustained in future. 5 Year CAGR Returns as on Feb 28, 2021. Data source: Bloomberg and Invesco Mutual Fund. BM- Benchmark- S&P BSE PSU TRI. The above graph is for illustration purpose only and should not be construed as a promise on minimum returns and safeguard of capital. The performance of above stocks should not be construed as performance of the Scheme as the Scheme would be constituted of number of stocks having different weights and the individual stock held by the scheme may or may not give positive returns. Invesco Asset Management (India) Pvt. Ltd. is not guaranteeing or forecasting any returns. Please refer slide on ‘Lumpsum Performance’ for performance of the Scheme. Disclaimer: The stocks referred above is/are for information and / or illustration purpose only and should not be construed as recommendation from Invesco Asset Management (India) Private Limited/Invesco Mutual Fund. The Scheme may or may not have any present or future positions in these stocks. 15 Our approach to stock selection- government policies and reforms can be enablers..

Key policy measures and reform initiatives of the government for PSU sector

. Diesel price deregulation- The Oil marketing companies’ ROCE rose from 11% in FY14 to 24% in FY17 with reduction in net debt from 1.5x networth in FY14 to 0.7x networth in FY17

. Ujwal DISCOM Assurance Yojana- This led to reduction in DISCOM losses as well as cost of generation of power

. Pradhan Mantri Aawas Yojna- It created construction as well as lending opportunities

. Fast tracking approvals accelerated Coal India’s production growth – Coal India’s output which saw CAGR of 2.4% during FY11-14 moved up to 6.2% during FY14-17.

. Introduction of ‘The Insolvency & Bankruptcy Code, 2016’ to facilitate NPA recovery of banks

. Focus on gas sector, which led to creation of highly profitable companies like IGL, MGL, Petronet etc. that have first mover advantage in creating gas infrastructure.

ROCE- Return on Capital Employed. NPA- Non-performing asset.

16 .. but reforms, size and competitive advantage may not be the only elements for stock selection

Few examples- Not all government reforms meet with desired success

. Coal India’s output which saw a CAGR of 2.4% during FY11-14 moving up to 6.2% in FY14-17 post government intervention, but then faltered to 2.8% during FY17-20. Its output reached just 602 mn tonnes in FY20 as against target of 1 bn tonnes

. The PSU bank profitability has remained weak despite various reforms in Banking sector – average ROE of largest PSU Bank for FY18-20 stands at just 2%

. Merely size, government policies and competitive advantage cannot necessarily translate into the profitability of the company

Particulars Name of the Portfolio Allocation Average Return on Equity company (Feb-21) (FY18-FY20)

Largest Power Equipment Company BHEL No 0% Largest Oil Marketing Company IOC No 13% Largest Upstream Oil Company ONGC No 10%

Thus, we combine government policies and unique advantages with profitability for guiding our stock selection rather than taking top-down calls on any particular stock

Data source for ROE: Factset. Disclaimer: The stocks / sectors referred above should not be construed as recommendations, advice to buy, sell or in any manner transact in this stock and neither should it be considered as Research Report from Invesco Asset Management (India) Private Limited and/or Invesco Mutual Fund. The Scheme may or may not have any present or future positions in these stocks / sectors. The above portfolio allocation is subject to change without any prior notice. 17 Execution and Profitability of companies is the key Examples of our stock selection approach

. Dedicated Freight Corridor was conceptualized in 2006 but momentum picked up only a decade later and hence Container Corporation of India figured in top five only in 2018 . Coal India saw initial uptick in production growth, but it faltered and hence we exited the stock . Despite various measures for PSU banks, Return on Equity has remained weak and hence we are very careful and selective in this sector Top holdings and portfolio allocation across time frame

Feb 2016 % Allocation Feb 2017 % Allocation Feb 2018 % Allocation Coal India 11.40% SBI 10.42% Powergrid 10.05% Powergrid 11.01% IOC 9.52% IOC 9.65% GSPL 10.29% Powergrid 9.48% ONGC 9.32% SBI 9.37% Coal India 9.10% Cochin Shipyard 8.06% HPCL 9.37% NTPC 8.18% BPCL 7.56%

Feb 2019 % Allocation Feb 2020 % Allocation Feb 2021 % Allocation Powergrid 9.79% NTPC 9.13% Powergrid 8.19% CONCOR 9.30% SBI 8.89% Bharat Electronics 7.27% BPCL 8.80% BPCL 8.49% BPCL 6.98% ONGC 8.66% Powergrid 8.46% Petronet LNG 6.06% IGL 8.19% Gujarat Gas 8.25% GSPL 5.34%

Diesel Price Deregulation 2014 The above portfolio allocation tables show how fund positions in changing regulatory framework, Pradhan Mantri Aawas Yojna 2015 but monitors execution & profitability of the company and makes requisite adjustment. Disclaimer: The stocks / sectors referred above should not be construed as recommendations, Coal India 1 bn tonne output - 2020 2015 advice to buy, sell or in any manner transact in this stock and neither should it be considered as Ujwal Discom Assurance Yojana 2015 Research Report from Invesco Asset Management (India) Private Limited and/or Invesco Mutual Insolvency and Bankruptcy Code 2016 Fund. The Scheme may or may not have any present or future positions in these stocks / sectors. The above portfolio allocation is subject to change without any prior notice. Dedicated Freight corridor 2016 Focus on cleaner fuel like gas Continuous efforts 18 Focus on Defence Continuous efforts Fund has consistently higher RoE vis-à-vis benchmark

Return on Equity (RoE)- Fund vs Benchmark

19.96% 19.49% 18.72% 19.00% 18.45% 18.34% 17.67% 17.73% 16.97% 16.79% 17.00% 15.02% 15.00% 13.37% 13.00% 12.47% 11.66% 11.88% 11.00% 9.64% 9.00%

7.00%

5.00% Dec-17 Dec-18 Dec-19 Dec-20 Feb-21

Fund S&P BSE PSU Nifty 50

Data as on February 28, 2021. Source: Factset . Fund- Invesco India PSU Equity Fund. Benchmark (BM) – S&P BSE PSU TRI. Additional Benchmark- Nifty 50 TRI. Past performance may or may not be sustained in future. Invesco Asset Management (India) Private Limited (IAMI)/ Invesco Mutual Fund is not guaranteeing or promising or forecasting any returns.

19 Fund’s performance attributed to stock selection Attribution Analysis

Attribution by stock Average Fund Average Attribution Analysis Weight (%) Benchmark Selection Effect Allocation Effect Total Effect Weight (%) Total 100% 100% 23.47% 4.93% 31.90% Top stocks BPCL Ltd. 7.96 6.06 6.22% 0.00% 6.22% IRCTC Ltd. 1.59 0.19 4.61% 0.00% 4.61% SBI Life 4.56 0.20 3.54% 0.00% 3.54% Insurance Ltd.

-4.39% 0.00% -4.39% Bottom stocks SBI 4.93 19.69 UTI Asset -2.65% 0.00% -2.65% Mgmt. Co. Ltd. 0.40 -2.25% 0.00% -2.25% IRFC Ltd. 0.15

Fund’s performance can be largely attributed to overweight positions (vs. benchmark) in select PSU ideas.

Past performance may or may not be sustained in future. 3 Year Attribution as at February 28, 2021Source: Bloomberg Attribution by stock is based on Portfolio contribution to returns. The above data is based on average of daily values. Top stocks are the stocks which have been major contributor in the outperformance of the fund over a period of last 3 years, and may have been included in the portfolio during any period of time under analysis. Bottom stocks are the stocks which have contributed least or in negative to the performance of the fund and may have been included in the portfolio during any period of time under analysis. Selection effect is the portion of portfolio excess return attributable to choosing different securities within groups from the benchmark. Allocation effect is cash versus equity allocation. Total effect represents the opportunity cost of investment decision in a group relative to overall benchmark. The average weights and attribution figures are estimates and should be used for indicative purposes only. Holdings may change without notice. Benchmark- S&P BSE PSU TRI. Disclaimer: The stocks referred above is for the purpose of information and / or illustration only and should not be construed as recommendations from Invesco Asset Management (India) Private Limited/Invesco Mutual Fund. The Scheme may or may not have any present or future positions in these stocks. The performance of above stocks should not be construed as performance of the Scheme as the Scheme would be constituted of number of stocks having different weights and the individual stock held by the scheme may or may not give positive returns. Invesco Asset Management (India) Private Limited/Invesco Mutual Fund is not guaranteeing or promising or forecasting any returns

20 Top 5 holdings/active holdings

% % % Weight Weight Weight % Over- Top 5 Holdings (Fund) Top 5 Active Holdings (Fund) (BM) weight Power Grid Corp Of India Limited 8.19% Petronet LNG Limited 6.06% 0.00% 6.06%

Bharat Electronics Limited 7.27% Gujarat State Petronet Limited 5.34% 0.00% 5.34%

Bharat Petroleum Corp Limited 6.98% Indian Railway Finance 5.17% 0.00% 5.17% Corporation Petronet LNG Limited 6.06% SBI Cards & Payment Services 4.82% 0.00% 4.82% Gujarat State Petronet Limited 5.34% Bharat Electronics Limited 7.27% 2.55% 4.72%

Active positions across our stock holdings vis-à-vis the benchmark, subject to regulatory limits; reflects our conviction on our ‘categorized’ stock universe

Past performance may or may not be sustained in future. Portfolio data as on February 28, 2021. BM: Benchmark- S&P BSE PSU TRI. Disclaimer: The stocks referred above should not be construed as recommendations from Invesco Asset Management (India) Private Limited and/or Invesco Mutual Fund. The Scheme may or may not have any present or future positions in these stocks.

21 Sector allocation (an outcome of stock selection)

Active Sector Weightings vis-à-vis benchmark (%) Sector Exposure Fund (%) Benchmark (%) Utilities 28.6% 23.3% Financials 26.2% 35.4% Materials 7.0% Industrials 14.9% 10.0%

Utilities 5.3% Materials 12.3% 5.3% Energy 11.9% 24.5% Industrials 4.9% Consumer Discretionary 2.8% 1.5% Consumer Staples - - Consumer Discretionary 1.4% Health Care - - Financials -9.2% Information Technology - - Communication Services - - Energy -12.6% Real Estate - - -20% -10% 0% 10% 20% Cash & Cash Equivalent 3.2%

Data as on February 28, 2021. Source: Bloomberg, Internal. Fund- Invesco India PSU Equity Fund. Benchmark- S&P BSE PSU TRI. Sector Classification as per Global Industry Classification Standard (GICS). Active sector weightings indicate overweight/underweight position relative to the benchmark. Disclaimer: The sectors referred above should not be construed as recommendations from Invesco Asset Management (India) Private Limited and/or Invesco Mutual Fund. The Scheme may or may not have any present or future positions in these sectors.

22 Performance Lumpsum

Performance as on February 28,2021 Fund Managers: Nitin Gosar & Dhimant Kothari Period Returns (%) CAGR Value of Rs. 10,000/- invested Invesco India Benchmark Additional Invesco India Benchmark Additional PSU Equity Benchmark PSU Equity Benchmark Fund Fund S&P BSE PSU TRI Nifty 50 TRI S&P BSE PSU Nifty 50 TRI TRI

1 Year 12.70% 25.43% 31.37% 11,266 12,535 13,127

3 Years 4.96% -2.23% 12.88% 11,560 9,345 14,378

5 Years 13.32% 8.54% 17.29% 18,683 15,064 22,189

7 Years 14.61% 6.84% 14.14% 25,969 15,895 25,244

10 Years 7.88% 0.87% 11.91% 21,347 10,908 30,831

Since Inception 7.11% 0.15% 11.14% 21,710 10,172 32,912 (November 18, 2009)

Past performance may or may not be sustained in future. The performance details provided herein are of existing plan (non - direct plan) – Growth Option. Benchmark returns are calculated using the Total Return variant of benchmark index (TRI). Different plans have different expense structure. For calculating returns since inception, NAV as on the date of allotment is taken as Rs. 10/-. Face Value per unit is Rs. 10/-. Returns above 1 year are Compounded Annualised Growth Rate (CAGR). Fund Managers: Mr. Nitin Gosar managing since June 1, 2018 and Mr. Dhimant Kothari managing since May 19, 2020. For performance of other schemes managed by the fund managers, please refer to the slide on ‘Performance of other schemes managed’. Please also refer slides on SIP performance of the fund and SIP performance of other schemes managed by the fund managers. For performance of direct plans please refer to latest factsheet on our website or click on the link: www.invescomutualfund.com/fund-performance.

23 Performance Systematic Investment Plan (SIP)

SIP Analysis as on February 28, 2021 (Rs. 10,000 invested on the first business day of every month) Fund Managers: Nitin Gosar & Dhimant Kothari

SIP Total Invesco India PSU Equity S&P BSE PSU TRI1 Nifty 50 TRI2 investment amount Fund invested (Rs.) Market value SIP returns Market value SIP returns (%) Market value SIP returns (%) (Rs.) (%) XIRR (Rs.) XIRR (Rs.) XIRR

1 Year 120,000 147,146 45.42% 172,419 91.91% 158,761 66.33%

3 Years 360,000 445,933 14.49% 424,081 11.00% 478,297 19.47%

5 Years 600,000 759,594 9.40% 672,858 4.55% 887,303 15.70%

7 Years 840,000 1,174,100 9.43% 951,983 3.53% 1,363,994 13.64%

10 Years 1,200,000 1,996,778 9.85% 1,419,376 3.30% 2,412,890 13.41%

Since 1,360,000 2,318,870 9.05% 1,576,682 2.57% 2,904,130 12.73% Inception

Past performance may or may not be sustained in future. The performance details provided herein are of existing plan (non - direct plan) – Growth Option. Benchmark returns are calculated using the Total Return variant of respective benchmark index (TRI), wherever applicable. Different plans have different expense structure. Load is not taken into consideration. For performance of other schemes managed by the fund manager, please refer to the slide on ‘Performance of other schemes managed’. Please also refer slides on SIP performance of other schemes managed by the fund managers. 1 Scheme Benchmark. 2 Additional Benchmark. Inception date: 18 November, 2009. Note: XIRR method is used to calculate SIP returns. The above investment simulation is for illustrative purpose only and should not be construed as a promise on minimum returns and safeguard of capital. Invesco Asset Management (India) Private Limited/Invesco Mutual Fund is not guaranteeing or promising or forecasting any returns. SIP does not ensure a profit or guarantee protection against a loss in a declining market. Please refer SIP Enrolment Form or contact nearest ISC for Load Structure.

24 Calendar year returns

S&P BSE PSU TRI Period Fund Returns Nifty 50 TRI Returns Returns

CY 2010 11.45% 1.06% 19.22%

CY 2011 -24.46% -31.64% -23.81%

CY 2012 17.75% 15.94% 29.25%

CY 2013 -15.05% -18.32% 8.07%

CY 2014 54.55% 42.61% 32.9%

CY 2015 2.53% -14.87% -3.01%

CY 2016 17.94% 16.89% 4.39%

CY 2017 24.26% 22.69% 30.27%

CY 2018 -16.9% -18.69% 4.64%

CY 2019 10.08% -1.12% 13.48%

CY2020 6.05% -12.76% 16.09%

Past performance may or may not be sustained in future. Returns are absolute. The performance details provided herein are of existing plan (non - direct plan) – Growth Option. Benchmark returns are calculated using the Total Return variant of respective benchmark index (TRI), wherever applicable. Different plans have different expense structure. Please refer slide on ‘Lumpsum Performance’ for performance of the Scheme. Invesco Asset Management (India) Private Limited is not guaranteeing or promising or forecasting any returns. For performance of direct plans please refer to latest factsheet on our website or click on the link: www.invescomutualfund.com/fund-performance. CY: Calendar Year.

25 Portfolio Characteristics

Characteristic Invesco India PSU Equity S&P BSE PSU TRI^ Fund

Price to Earnings1-FY22E 12.3 8.5

Last 3Y EPS Growth2 – (FY17-20) 26.1% 85.9%

12 Month Trailing Price to Cash flow1 9.2 5.0

12 Month Trailing Price to Book Value1 1.9 1.1

ROE-FY21 E1 14.1% 9.0%

Source: Factset / Internal. Data as on February 28, 2021 1 Weighted Harmonic Mean. 2 Weighted Arithmetic Mean. “Weighted Arithmetic Mean” is an average resulting from the multiplication of observation for each company by the weightage of that stock in the portfolio / index. “Weighted Harmonic Mean” is an average resulting from the multiplication of the reciprocal of the observation for each component by the weightage of that stock in the portfolio/index. It reduces the impact of outliers. ROE: Return on Equity. EPS: Earnings Per Share. ^Benchmark

26 Key facts

Type of the Scheme An open ended equity scheme following PSU theme

Investment Objective To generate capital appreciation by investing in Equity and Equity Related Instruments of companies where the Central / State Government(s) has majority shareholding or management control or has powers to appoint majority of directors.

Asset Allocation Type of security Normal Allocation (% of total assets) Risk Profile Equity and Equity Related Instruments of Public 80–100% High Sector Undertakings (PSUs) Equity and Equity Related Instruments other than 0–20% High Public Sector Undertakings (PSUs) Debt and Money Market Instruments 0-20% Low to medium

Debt instruments may include securitized debt upto 20% of the net assets of the Scheme. The Scheme will not invest in foreign securitized debt. The Scheme may use derivatives for purposes as may be permitted from time to time. The maximum derivative position will be restricted to 50% of the net assets of the Scheme. The cumulative gross exposure through equity, debt and derivative positions shall not exceed 100% of the net assets of the Scheme, subject to provisions of SEBI circular dated August 18, 2010 w.r.t. investment in derivatives.

Minimum Application Lumpsum: Rs. 1,000/- per application and in multiples of Re. 1 thereafter. For Systematic Investment Plan (SIP): Amount Options Minimum Amount Minimum Installments Rs. 500 per month and in multiples of Re. 1 thereafter 12 Monthly Rs. 1,000 per month and in multiples of Re. 1 thereafter 6 Quarterly Rs. 1,500 per quarter and in multiples of Re. 1 thereafter 4

Plans^/Options . Growth Option (Applicable to Direct . Dividend Payout Plan also) . Dividend Reinvestment (If dividend payable under dividend option is equal to or less than Rs. 100/- then the dividend would be compulsorily reinvested)

Loads Entry Load: Nil* Exit Load: # . if upto 10% of Units allotted are redeemed / switched-out within 1 year from the date of allotment– Nil . for any redemption / switch-out in excess of 10% of units allotted within 1 year from the date of allotment– 1% . if units are redeemed or switched out after 1 year from the date of allotment.- Nil Switch between the Plans under the Scheme: Nil

Fund Managers Nitin Gosar & Dhimant Kothari

Benchmark S&P BSE PSU TRI

^ Direct Plan will have a lower expense ratio excluding distribution expenses, commission for distribution of Units etc. *The upfront commission, if any, on investment made by the investor shall be paid by the investor directly to the Distributor, based on his assessment of various factors including the service rendered by the Distributor. #Exit load charged, if any, will be credited back to the scheme, net of Goods and Services Tax. Benchmark based on Total Return variant of respective benchmark index. (TRI),wherever applicable.

27 Performance of other schemes managed

Performance as on February 28, 2021 Returns (% CAGR) Period 1 Year 3 Years 5 Years 7 Years 10 Years Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Managers: Taher Badshah & Dhimant Kothari Invesco India Contra 30.91% 34.42% 10.87% 11.12% 19.02% 17.54% 19.60% 15.55% 15.40% 12.49% Fund Fund Managers: Amit Nigam & Dhimant Kothari

Invesco India Tax Plan 25.38% 33.70% 11.45% 12.06% 17.28% 17.63% 17.65% 15.44% 15.18% 12.57% Fund Managers: Amit Nigam, Dhimant Kothari (Equity investments) & Krishna Cheemalapati (Debt investments) Invesco India Equity 8.83% 15.44% ------Savings Fund Fund Managers: Dhimant Kothari & Hiten Jain Invesco India Financial 15.25% 18.92% 10.43% 16.07% 20.01% 23.32% 19.10% 20.60% 13.76% 15.62% Services Fund

Fund Managers: Amit Nigam & Nitin Gosar Invesco India Largecap 21.42% 31.37% 9.33% 12.88% 14.23% 17.29% 14.13% 14.14% 11.72% 11.91% Fund

Past performance may or may not be sustained in future. The performance details provided herein are of existing plan (non – direct plan) – Growth Option. Different plans have different expense structure. Face Value per unit is Rs. 10/-. Returns above 1 year are Compounded Annualised Growth Rate (CAGR). Benchmark Returns are calculated using Total Return variant of respective Benchmark Index (TRI), wherever applicable. No. of schemes managed - Mr. Dhimant Kothari: 5, Nitin Gosar: 2. Funds benchmark- Invesco India Contra Fund: S&P BSE 500 TRI; Invesco India Tax Plan: S&P BSE 200 TRI; Invesco India Equity Savings Fund: Nifty Equity Savings Index; Invesco India Financial Services Fund: Nifty Financial Services TRI; Invesco India Largecap Fund: Nifty 50 TRI. For performance of direct plans please refer to latest factsheet on our website or click on the link: www.invescomutualfund.com/fund-performance. Fund Managers managing the schemes since: Invesco India Contra Fund – Taher Badshah - January 13, 2017 and Dhimant Kothari – May 19, 2020; Invesco India Tax Plan: Amit Nigam- September 3, 2020 and Dhimant Kothari –March 29, 2018; Invesco India Equity Savings Fund- Amit Nigam- September 3, 2020, Dhimant Kothari- May 19, 2020 and Krishna Cheemalapati- March 7, 2019; Invesco India Financial Services Fund- Dhimant Kothari- June 1, 2018 and Hiten Jain- May 19, 2020; Invesco India Largecap Fund- Amit Nigam- September 3, 2020 and Nitin Gosar- March 29, 2018. 28 SIP performance of other schemes managed (CONTINUED)

SIP Analysis as on February 28, 2021 (Rs. 10,000 invested on the first business day of every month) Fund Managers: Taher Badshah & Dhimant Kothari SIP investment Total amount Invesco India Contra Fund S&P BSE 500 TRI1 Nifty 50 TRI2 invested (Rs.) Market value SIP returns (%) Market value (Rs.) SIP returns (%) Market value SIP returns (%) (Rs.) XIRR XIRR (Rs.) XIRR

1 Year 120,000 159,487 67.66% 162,356 72.96% 158,761 66.33% 3 Years 360,000 482,915 20.16% 483,784 20.29% 478,297 19.47% 5 Years 600,000 900,198 16.29% 883,554 15.53% 887,303 15.70% 7 years 840,000 1,455,977 15.47% 1,376,712 13.90% 1,363,994 13.64% 10 years 1,200,000 2,913,084 16.92% 2,494,277 14.03% 2,412,890 13.41% Since Inception 1,670,000 5,547,477 15.88% 4,354,648 12.82% 4,176,759 12.29%

Fund Manager: Amit Nigam & Nitin Gosar

SIP investment Total amount Invesco India Largecap Fund Nifty 50 TRI1 S&P BSE Sensex TRI2 invested (Rs.) Market value SIP returns (%) Market value (Rs.) SIP returns (%) Market value SIP returns (%) (Rs.) XIRR XIRR (Rs.) XIRR

1 Year 120,000 150,705 51.74% 158,761 66.33% 157,647 64.29% 3 Years 360,000 453,312 15.65% 478,297 19.47% 481,833 20.00% 5 Years 600,000 818,104 12.40% 887,303 15.70% 907,359 16.62% 7 years 840,000 1,266,602 11.56% 1,363,994 13.64% 1,393,707 14.24% 10 years 1,200,000 2,304,010 12.54% 2,412,890 13.41% 2,472,879 13.87% Since Inception 1,390,000 2,886,942 12.00% 3,013,275 12.68% 3,091,469 13.08%

Past performance may or may not be sustained in future. The performance details provided herein are of existing plan (non - direct plan) – Growth Option. Benchmark returns are calculated using the Total Return variant of respective benchmark index (TRI). Different plans have different expense structure. Load is not taken into consideration. For performance of other schemes managed by the fund managers, please refer to the slide on ‘Performance of other schemes managed’. 1Scheme Benchmark. 2 Additional Benchmark. Inception date: Invesco India Contra Fund – 11 April, 2007. Invesco India Largecap Fund –21, August 2009. Note: XIRR method is used to calculate SIP returns. The above investment simulation is for illustrative purpose only and should not be construed as a promise on minimum returns and safeguard of capital. Invesco Asset Management (India) Private Limited/Invesco Mutual Fund is not guaranteeing or promising or forecasting any returns. SIP does not ensure a profit or guarantee protection against a loss in a declining market. Please refer SIP Enrolment Form or contact nearest ISC for Load Structure. 29 SIP performance of other schemes managed

SIP Analysis as on February 28, 2021 (Rs. 10,000 invested on the first business day of every month) Fund Manager: Amit Nigam & Dhimant Kothari SIP investment Total amount Invesco India Tax Plan S&P BSE 200 TRI1 Nifty 50 TRI2 invested (Rs.) Market value SIP returns (%) Market value (Rs.) SIP returns (%) Market value SIP returns (%) (Rs.) XIRR XIRR (Rs.) XIRR

1 Year 120,000 156,392 62.00% 160,981 70.42% 158,761 66.33% 3 Years 360,000 476,733 19.23% 483,199 20.20% 478,297 19.47% 5 Years 600,000 877,094 15.23% 888,556 15.76% 887,303 15.70% 7 years 840,000 1,391,441 14.20% 1,383,633 14.04% 1,363,994 13.64% 10 years 1,200,000 2,728,804 15.71% 2,504,038 14.10% 2,412,890 13.41% Since Inception 1,700,000 5,546,952 15.36% 4,526,130 12.84% 4,308,364 12.22%

Fund Managers: Dhimant Kothari & Hiten Jain

SIP investment Total amount Invesco India Financial Services Nifty Financial Services TRI1 Nifty 50 TRI2 invested (Rs.) Fund Market value SIP returns (%) Market value (Rs.) SIP returns (%) Market value SIP returns (%) (Rs.) XIRR XIRR (Rs.) XIRR

1 Year 120,000 161,624 71.61% 167,215 82.04% 158,761 66.33% 3 Years 360,000 464,742 17.41% 492,668 21.60% 478,297 19.47% 5 Years 600,000 868,342 14.82% 964,306 19.11% 887,303 15.70% 7 Years 840,000 1,413,000 14.63% 1,566,209 17.52% 1,363,994 13.64% 10 years 1,200,000 2,671,010 15.31% 2,992,239 17.42% 2,412,890 13.41% Since Inception 1,520,000 4,396,777 15.63% 4,977,986 17.38% 3,646,294 12.98%

Past performance may or may not be sustained in future. The performance details provided herein are of existing plan (non - direct plan) – Growth Option. Benchmark returns are calculated using the Total Return variant of respective benchmark index (TRI). Different plans have different expense structure. Load is not taken into consideration. For performance of other schemes managed by the fund managers, please refer to the slide on ‘Performance of other schemes managed’. 1Scheme Benchmark. 2 Additional Benchmark. Inception date: Invesco India Tax Plan –December 29, 2006; Invesco India Financial Services Fund- July 14, 2008. Note: XIRR method is used to calculate SIP returns. The above investment simulation is for illustrative purpose only and should not be construed as a promise on minimum returns and safeguard of capital. Invesco Asset Management (India) Private Limited/Invesco Mutual Fund is not guaranteeing or promising or forecasting any returns. SIP does not ensure a profit or guarantee protection against a loss in a declining market. Please refer SIP Enrolment Form or contact nearest ISC for Load Structure. 30 SIP Performance of other schemes managed (CONTINUED)

SIP Analysis as on February 28, 2021 (Rs. 10,000 invested on the first business day of every month) Fund Managers: Amit Nigam, Dhimant Kothari (For equity) and Krishna Cheemalapati (For debt) Invesco India Equity Savings Fund Nifty Equity Savings Index1 CRISIL 10 Yr Gilt Index2 Total amount Market SIP returns (%) Market SIP returns (%) Market SIP returns (%) SIP investment invested (Rs.) value (Rs.) XIRR value (Rs.) XIRR value (Rs.) XIRR 1 Year 120,000 130,231 16.51% 134,537 23.69% 120,756 1.19% Since Inception 240,000 265,551 10.16% 275,313 13.95% 254,075 5.64%

Past performance may or may not be sustained in future. The performance details provided herein are of existing plan (non - direct plan) – Growth Option. Different plans have different expense structure. Load is not taken into consideration. Benchmark Returns are calculated using Total Return variant of respective Benchmark Index (TRI). For performance of other schemes managed by the fund managers, please refer to the slide on ‘Performance of other schemes managed’. 1Scheme Benchmark. 2Additional Benchmark. Inception date: Invesco India Equity Savings Fund– 7 March 2019. Note: XIRR method is used to calculate SIP returns. The above investment simulation is for illustrative purpose only and should not be construed as a promise on minimum returns and safeguard of capital. Invesco Asset Management (India) Private Limited/Invesco Mutual Fund is not guaranteeing or promising or forecasting any returns. SIP does not ensure a profit or guarantee protection against a loss in a declining market. Please refer SIP Enrolment Form or contact nearest ISC for Load Structure.

31 Annexure Divestment examples Privatization of PSU companies leading to wealth creation

Company Date of divestment Funds investment strategy provides the flexibility to hold companies 29 August 2000 which subsequently may get privatized or where the Government 8 July 2003 shareholding gets reduced through the process of disinvestment

Company Details as on the date of Market Price as on CAGR Returns (%) divestment 26 Feb 2021 Stock Price Sensex Stock Sensex Stock S&P BSE Sensex Hindustan 8 4402 297.5 49099.99 19.28% 12.48% Zinc Maruti Suzuki 125 3630 6866 49099.99 25.48% 15.90%

Past performance may or may not be sustained in future. Data source: Bloomberg/Capitaline/Internal. The above are some of the companies which have gained and it is not necessary that all PSU companies have benefited. The stock referred above should not be construed as recommendation, advice to buy, sell or in any manner transact in this stock and neither should it be considered as Research Report from IAMI. The above table is for illustration purpose only and should not be construed as a promise on minimum returns and safeguard of capital. The performance of above stocks should not be construed as performance of the Scheme as the Scheme would be constituted of number of stocks having different weights and the individual stock held by the scheme may or may not give positive returns. Invesco Asset Management (India) Pvt. Ltd. is not guaranteeing or forecasting any returns. Please refer slide on ‘Lumpsum Performance’ for performance of the Scheme. Disclaimer: The stocks referred above is/are for information and / or illustration purpose only and should not be construed as recommendation from Invesco Asset Management (India) Private Limited/Invesco Mutual Fund. The Scheme may or may not have any present or future positions in these stocks.

33 Divestment Examples since January 2018 – Post IPO Performance

S&P BSE Stock Sensex Stock Price Returns Returns(from Company Listing Date Issue Price as at Feb 26, (from issue listing date 2021 price till Feb till Feb 26, 26, 2021) 2021) Indian Railway Catering and Tourism 14-Oct-19 320 1759.69 246% 20% Corporation Limited MSTC Limited 29-Mar-19 120 274.35 54% 13% Mazagon Dock Shipbuilders 12-Oct-20 145 213.2 47% 66% SBI Cards and Payment Services Ltd 16-Mar-20 755 1069.3 42% 60% Rail Vikas Nigam Limited 11-Apr-19 19 31.75 31% 14% Mishra Dhatu Nigam Limited 04-Apr-18 90 191.2 30% 15% Garden Reach Shipbuilders & Engineers Limited 10-Oct-18 118 198.05 24% 16% Railtel 26-Feb-21 109 121.35 11% - RITES Limited 02-Jul-18 185 244.9 11% 39% UTI Asset Management Co. Limited 12-Oct-20 554 589.95 6% 66% Ircon International Limited 28-Sep-18 83.06 94.25 5% 36% IRFC 29-Jan-21 24.90 24.65 -1% 6% Hindustan Aeronautics Limited 28-Mar-18 1215 1087.05 -4% 49% Bharat Dynamics Limited 23-Mar-18 428 350.3 -7% 51%

Past performance may or may not be sustained in future. Data source: Bloomberg/NSE. Returns less than 1 year are absolute; above 1 year are CAGR. Compounded Annualised Growth Rate (CAGR). The stock referred above should not be construed as recommendation, advice to buy, sell or in any manner transact in this stock and neither should it be considered as Research Report from IAMI. The above table is for illustration purpose only and should not be construed as a promise on minimum returns and safeguard of capital. The performance of above stocks should not be construed as performance of the Scheme as the Scheme would be constituted of number of stocks having different weights and the individual stock held by the scheme may or may not give positive returns. Invesco Asset Management (India) Pvt. Ltd. is not guaranteeing or forecasting any returns. Please refer slide on ‘Lumpsum Performance’ for performance of the Scheme. Disclaimer: The stocks referred above is/are for information and / or illustration purpose only and should not be construed as recommendation from Invesco Asset Management (India) Private Limited/Invesco Mutual Fund. The Scheme may or may not have any present or future positions in these stocks.

34 Disclaimer

Disclaimer: The information alone is not sufficient and shouldn’t be used for the development or implementation of an investment strategy. It should not be construed as investment advice to any party. All figures, charts/graphs and data included in this presentation are as on date and are subject to change without notice. The statements contained herein are based on our current views and involve known/unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. The data used in this presentation is obtained by Invesco Asset Management (India) Private Limited from the sources which it considers reliable. The stocks/sectors referred in the presentation should not be construed as recommendations from Invesco Asset Management (India) Private Limited and/or Invesco Mutual Fund and the Scheme may or may not have any present or future positions in these stocks/sectors. While utmost care has been exercised while preparing this presentation, Invesco Asset Management (India) Private Limited does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The content of this presentation is intended solely for the use of the addressee. If you are not the addressee or the person responsible for delivering it to the addressee, any disclosure, copying, distribution or any action taken or omitted to be taken in reliance on it is prohibited and may be unlawful. The recipient(s) before acting on any information herein should make his/their own investigation and seek appropriate professional advice. Disclosure of Risk-o-Meter - Risk-o-meter disclosed in the product label of the Scheme is based on the Scheme portfolio as on February 28, 2021. The AMC will evaluate the Risk-o-Meter on a monthly basis and shall disclose the same along with the portfolio disclosure. Any change in the risk-o-meter will be communicated by way of Notice-cum-Addendum and by way of an Email /SMS to the Unit holders of the Scheme. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

35 Get in touch

Corporate Office: Invesco Asset Management (India) Private Limited 2101 A, 21st Floor, A- Wing, Marathon Futurex, N.M. Joshi Marg, Lower Parel, Mumbai – 400 013 +91 22 67310000 F +91 22 23019422

To invest: Call 1800-209-0007 ∆ sms ‘Invest’ to 56677 Invest Online www.invescomutualfund.com

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