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3 Invesco Mutual Funds to Buy for Steller Returns

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Founded in 1978, Invesco is a trusted name in the investment industry. Headquartered in Atlanta, GA, the company helped investors diversify by giving access to a wide selection from various asset classes, sectors and markets. Invesco asset management had around $1.54 trillion worth of assets under management as of Jun 30, 2023.

The company has more than 8,400 employees and offers financial services worldwide through offices located in 25 countries. 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 and expect the Federal Reserve to hold interest rate, which is currently in the range of 5.25-5.5%. However, the Fed has hinted at a further rate hike to counter inflation, which was up 3.7% year on year for the month of October. Also, the tension in the Middle East due to the war between Israel and the Palestine-based militant group Hamas amid ceasefire will certainly impact corporate profitability and the global supply chain.

We have thus selected three Invesco mutual funds for investors 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 long-term financial success. With the majority of their investment 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 carry a low expense ratio compared to the category average. 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 (MLPZX - 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. 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, and most of the fund’s exposure is in companies like Energy Transfer (14.2%), MPLX (13.7%) and Nustar Energy (8.5%) as of 5/31/2023.

MLPZX’s three-year and five-year annualized returns are 39.5% and 9.7%, respectively. MLPZX has an annual expense ratio of 1.13%, which is less than the category average of 1.56%.

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 seeks long-term capital growth by investing most of its assets along with borrowings, if any, in common stocks of small-capitalization companies, which, according to the fund’s advisors, are undervalued. VSMIX advisors also invest in derivatives, or other instruments with the same economic characteristics.

Jonathan Mueller has been the lead manager of VSMIX since Jun 24, 2010. Most of the fund’s exposure is in companies like Pinnacle Financial Partners (2.8%), Northern Oil & Gas (2.7%) and Lumentum Holdings (2.4%) as of 7/31/2023.

VSMIX’s three-year and five-year annualized returns are 25.1% and 13.4%, respectively. VSMIX has an annual expense ratio of 0.84%, which is less than the category average of 1.16%.

Invesco Comstock Fund (ACSDX - Free Report) invests most of its assets, along with borrowings, if any, in common stocks, derivatives and other instruments, preferably of largemarket-capitalization companies. ACSDX advisors also invest in real estate investment trusts.

Kevin C. Holt has been the lead manager of ACSDX since Jul 31, 1999, and most of the fund’s exposure is in companies like Meta Platform (2.9%), Philip Morris International (2.7%), Wells Fargo (2.6%) and as of 7/31/2023.

ACSDX’s three-year and five-year annualized returns are 18.2% and 8.8%, respectively. ACSDX has an annual expense ratio of 0.56% compared to the category average of 0.94%.

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