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3 Invesco Mutual Funds to Build a Solid Portfolio

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Headquartered in Atlanta, GA, Invesco is 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.

The company 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. 

Volatility on Wall Street continues as investors are cautious due to rising inflation and a strong labor market. Consumer Price Index for the month of February rose 0.4% and 3.2% from a year ago, slightly higher than the street expectation of a 3.1% yearly increase. The Job Openings and Labor Turnover Survey, or JOLTS, also indicated a strong labor market, as reports showed that there were 1.45 jobs for every unemployed person in January, up from 1.42 in December. Though the Fed Chairman’s dovish comment before the Senate suggests that the central bank will initiate interest rate reduction this year, investors' expectation for an early rate cut is most likely to be delayed owing to the current situation.

We have thus selected three Invesco mutual funds for those who wish to diversify in various asset classes but lack professional expertise in managing funds. The fund house has a reputation as a trusted partner and boasts long-term financial success. With the majority of the 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 three-year and five-year annualized returns, minimum initial investments within $5000, and have an expense ratio of 1% or less. 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 (MLPTX - Free Report) 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 Mar 30, 2010. Most of the fund’s exposure was in companies like Energy Transfer (8%), MPLX (7.1%) and Nustar Energy (5.9%) as of Nov 30, 2023.

MLPTX’s three-year and five-year annualized returns are 25.8% and 10.5%, respectively. MLPTX has an annual expense ratio of 0.89%.

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 (VSMIX - Free Report) 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 Jun 24, 2010. Most of the fund’s exposure was in companies like Leonardo Spa (2.4%), Pinnacle Financial Partner (2.3%) and Northern Oil & Gas (2.3%) as of Oct 31, 2023.

VSMIX’s three-year and five-year annualized returns are 16.6% and 16.8%, respectively. VSMIX has an annual expense ratio of 0.86%.

Invesco Growth and Income (ACGMX - Free Report) 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 Feb 28, 2003. Most of the fund’s exposure was in companies like Wells Fargo (3.8%), Bank of America (3.0%) and ConocoPhillips (2.6%) as of Nov 30, 2023.

ACGMX’s three-year and five-year annualized returns are 10.2% and 10.4%, respectively. ACGMX has an annual expense ratio of 0.54%.

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