Major U.S. indexes, such asthe Dow Jones Industrial Average, the S&P 500 and the tech-heavy Nasdaq Composite have gained 13.3%, 24.7% and 32.1% over the past year. However, various uncertainties weighed on investors’ confidence.
Per the report published by the Conference Board, consumer confidence for the month of December came in at 104.7, significantly lower than the market consensus of 113. Also, the 10-year U.S. Treasury yield surged to a seven-month high of 4.626% on Dec. 27, as market participants expect a more hawkish Federal Reserve in 2025. Also, uncertainties over Donald Trump’s economic policies are a concern.
The U.S. labor market is cooling consistently, per the Fed’s expectations. The number of Americans filing new applications for jobless benefits recorded for the week ending Dec. 21 fell by 1,000 to 219,000, the lowest in a month. However, continuing claims rose by 46,000 for the week ending Dec. 14 to the highest level in three years.
In such a volatile market situation, investor who wish to diversify in various asset classes but lack professional expertise in managing funds can opt for Invescomutual funds like Invesco SteelPath MLP Select 40 Fund MLPFX, Invesco Small Cap Value VSMCX and Invesco Growth and Income ACGIX. 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 helped 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 three-year and five-year annualized returns, minimum initial investments within $5000, and carry a low expense ratio. 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. MLPFX advisors also invest in derivatives and other instruments with similar economic characteristics in the same industry.
Stuart Cartner has been the lead manager of MLPFX since Apr. 1, 2010. Most of the fund’s exposure was in companies like Energy Transfer (7.8%), MPLX (7.5%) and Western Midstream (6.6%) as of Aug. 31, 2024.
MLPFX has a three-year and five-year annualized return of 28.9% and 18%, respectively. MLPFX has an annual expense ratio of 1.12%.
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 derivative instruments with similar economic characteristics. VSMCX advisors choose to invest in companies that, according to them, are undervalued.
Jonathan Mueller has been the lead manager of VSMCX since June 25, 2010. Most of the fund’s exposure was in companies like Western Alliance Bankcorp (3.6%), Coherent Corporation (3.3%) and Lumentum Holdings (3.0%) as of July 31, 2024.
VSMCX’s three-year and five-year annualized returns are 20.7% and 20.9%, respectively. VSMCX has an annual expense ratio of 1.86%.
Invesco Growth and Income fund invests most of its net assets in income-producing common stocks and convertible securities, preferably in large-cap companies. ACGIX advisors also invest in issuers of foreign companies and depositary receipts.
Sergio Marcheli has been the lead manager of ACGIX since March 1, 2003. Most of the fund’s exposure was in companies like Wells Fargo (3.3%), Bank of America (3.2%) and Exxon Mobil (2.3%) as of Aug. 31, 2024.
ACGIX’s three-year and five-year annualized returns are 11.6% and 12.4%, respectively. ACGIX has an annual expense ratio of 0.79%.
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