3 Invesco Mutual Funds to Add to Your Portfolio
Major U.S. indexes like the S&P 500, the Nasdaq Composite and the Dow Jones Industrial Average have given investors positive returns of 13.9%, 17.7% and 2.5%, respectively, in the year-to-date period. But volatility lingers due to sticky inflation and uncertainty over when the Federal Reserve intends to give some relief from the 22-year high interest rates
The consumer price index (CPI), which is the most accepted gauge for inflation, came in flat at 0.3% for the month of May, while the annual rate was 3.3%. CPI came in better than Wall Street’s expectation of a 0.1% monthly gain and a 3.4% annual rate. Though CPI numbers suggest that inflation has slightly softened in the U.S. economy, it is still higher than the Federal Reserve’s ambitious inflation target of 2%.
U.S GDP growth rate of 1.3% from January to March 2024, was recorded as the weakest since the spring of 2022. It is important for the Fed to strike a balance between the desired inflation target and the falling growth rate to make a soft landing for the economy. High borrowing rates for long hurt corporate performance, which will impact stock prices, making it risky for investors to take investment decisions.
Investors who wish to diversify their portfolio but lack the necessary expertise in managing their own funds can opt for the below below-mentioned Invesco mutual funds. Headquartered in Atlanta, GA, Invesco has been a trusted name in the investment industry since 1978. 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 $1.58 trillion worth of assets under management as of Dec 31, 2023.
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.
The fund house has a reputation as a trusted partner and boasts long-term financial success. With the majority of investments in sectors like technology, industrial cyclical, finance, energy and utilities, these funds are expected to perform well in the future.
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. 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 Income Fund MLPZX 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. MLPZX advisors also invest in derivatives and other instruments with similar economic characteristics in the same industry.
Stuart Cartner has been the lead manager of MLPZX since Mar 30, 2010. Most of the fund’s exposure was in companies like Western Midstream Partners (14.9%), Energy Transfer (14.6%) and MPLX (13.9%) as of Feb 29, 2024.
As of May 31, 2024, MLPZX’s YTD, three-year and five-year annualized returns are 13.8%, 21.4% and 12.5%, respectively. MLPZX has an annual expense ratio of 1.15%.
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 VSMCX 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. VSMCX advisors choose to invest in companies that, according to them, are undervalued.
Jonathan Mueller has been the lead manager of VSMCX since Jun 24, 2010. Most of the fund’s exposure was in companies like Lumentum Holdings (3.1%), Coherent (2.9%) and Expedia (2.7%) as of Jan 31, 2024.
As of May 31, 2024, VSMCX’s YTD, three-year and five-year annualized returns are 14.6%, 13% and 20.8%, respectively. VSMCX has an annual expense ratio of 1.83%.
Invesco Growth and Income ACGLX fund invests most of its net assets in income-producing common stocks and convertible securities, preferably in large-cap companies. ACGLX advisors also invest in issuers of foreign companies and depositary receipts.
Sergio Marcheli has been the lead manager of ACGLX since Feb 28, 2003. Most of the fund’s exposure was in companies like Wells Fargo (4.2%), Bank of America (3.1%) and CBRE Group (2.5%) as of Feb 29, 2024.
As of May 31, 2024, ACGLX’s three-year and five-year annualized returns are 7.8%, 6.4% and 11.3%, respectively. ACGLX has an annual expense ratio of 1.06%.
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