The U.S. economy has recovered strongly from the lows of 2022, which were induced by high inflation and the Covid-19 crisis. The Federal Reserve maintained borrowing rates steady for 12 straight months to bring down inflation in the world’s largest economy. The Fed’s hawkish stance has brought inflation close to its 2% target.
The producer price index (PPI) for final demand remained unchanged month over month at 0.2% in September, which is in line with Wall Street’s expectations. The labor market also remained strong as nonfarm payrolls grew a solid 254,000, and the unemployment rate fell to 4.1%. Retail sales rose 0.4% in September against the street’s expectation of 0.3%. Signs of the economy’s resilience and the Federal Reserve’s interest rate cut decision have restored confidence and investors are expecting further reductions in borrowing costs next month.
Investors who wish to diversify in various asset classes but lack professional expertise in managing funds can opt for Invesco mutual funds like Invesco SteelPath MLP Select 40 Fund MLPTX, Invesco Small Cap Value VSMIX and Invesco Growth and Income ACGMX. These funds should be good choices since they provide low-cost and uncomplicated equity funds that can help investors meet their financial goals.
The majority of investments of these funds are in sectors like technology, industrial cyclical, finance, energy and utilities. The funds are expected to perform well in the future.
Why Invest in Invesco Mutual Funds?
Founded in 1978, the fund house has a reputation as a trusted partner and boasts long-term financial success. Headquartered in Atlanta, GA, the company has been helping investors diversify by giving access to a wide selection from various asset classes, sectors and markets. Invesco Asset Management had around $1.7 trillion worth of assets under management as of June 30, 2024.
Invesco has offices in 26 countries offering financial services and more than 8,400 employees. This top global investment management company caters to a wide range of mutual funds, including equity and fixed-income funds, and domestic and international funds.
Invesco also offers mutual funds that have specific investment strategies like sustainable investment, dividends, growth and emerging markets. These help customers make informed decisions based on individual goals.
These funds boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive year-to-date (YTD), three-year and five-year annualized returns, minimum initial investments within $5000, and carry a low expense ratio of less than 1%. Notably, mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Invesco SteelPath MLP Select 40 Fund invests most of its assets along with borrowings, if any, in the master limited partnership of companies, which are engaged in the transportation, storage, processing, refining, marketing, exploration, production, and mining of minerals and natural resources. MLPTX advisors also invest in derivatives and other instruments with similar economic characteristics in the same industry.
Stuart Cartner has been the lead manager of MLPTX since Apr. 1, 2010. Most of the fund’s exposure was in companies like Energy Transfer (8.1%), MPLX (7.4%) and Western Midstream (6.1%) as of May 31, 2024.
As of Sept. 30, 2024, MLPTX’s YTD, three-year and five-year annualized returns are 20.8%, 22.6% and 13.4%, respectively. MLPTX has an annual expense ratio of 0.87%.
To see how this fund performed compared to its category and other 1, 2, and 3 Ranked Mutual Funds, please click here.
Invesco Small Cap Value fund invests most of its assets along with borrowings, if any, in common stocks of small-capitalization companies, and in derivatives instruments with similar economic characteristics. VSMIX advisors choose to invest in companies that, according to them, are undervalued.
Jonathan Mueller has been the lead manager of VSMIX since June 25, 2010. Most of the fund’s exposure was in companies like Vertiv Holdings (3.2%), Coherent Corporation (3%) and Lumentum Holdings (3.0%) as of April 30, 2024.
As of Sept. 30 2024, VSMIX’s YTD, three-year and five-year annualized returns are 19.6%, 17.5% and 20.9%, respectively. VSMIX has an annual expense ratio of 0.86%.
Invesco Growth and Income fund invests most of its net assets in income-producing common stocks and convertible securities, preferably in large-cap companies. ACGMX advisors also invest in issuers of foreign companies and depositary receipts.
Sergio Marcheli has been the lead manager of ACGMX since March 1, 2003. Most of the fund’s exposure was in companies like Wells Fargo (3.8%), Bank of America (3.6%) and Exxon Mobil (2.4%) as of May 31, 2024.
As of Sept. 30 2024, ACGMX’s YTD, three-year and five-year annualized returns are 15.6%, 9.8% and 11.9%, respectively. ACGMX has an annual expense ratio of 0.56%.
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