Investors are expecting a policy rate cut in its ongoing September FOMC meeting after the Fed kept interest rates unchanged at 5.25-5.5% for the last eight monetary policy meetings. Various Fed-friendly macroeconomic data and Chairman Jerome Powell’s keynote speech at the annual Jackson Hole Economic Policy Symposium have raised expectations that the central bank will probably end the high-interest regime that began in March 2022.

The CME FedWatch tool indicates a 100% probability of a 25-basis point interest rate cut in September and a 69% chance of a 50-basis-point rate cut.

Amid current market conditions, we have selected four Invesco mutual funds for those who wish to diversify in various asset classes but lack professional expertise in managing funds. These funds are Invesco SteelPath MLP Select 40 Fund (MLPFX Quick QuoteMLPFX - Free Report) , Invesco Small Cap Value (VSCAX Quick QuoteVSCAX - Free Report) , Invesco Comstock (ACSDX Quick QuoteACSDX - Free Report) and Invesco Growth and Income (ACGIX Quick QuoteACGIX - Free Report) .

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 $1.75 trillion worth of assets under management as of Aug. 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. 

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 March 31, 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.

MLPFX’sthree-year and five-year annualized returns are 24.3% and 13.5%, 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 derivatives instruments with similar economic characteristics. VSCAX advisors choose to invest in companies that, according to them, are undervalued.

Jonathan Mueller has been the lead manager of VSCAX 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.

VSCAX’s three-year and five-year annualized returns are 17.1% and 21.5%, respectively. VSCAX has an annual expense ratio of 1.11%.

Invesco Comstock fund 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 Aug. 1, 1999. Most of the fund’s exposure was in companies like Wells Fargo (3.3%), Bank of America (2.7%) and Philip Morris International (2.5%) as of April 30, 2024.

ACSDX’s three-year and five-year annualized returns are 11.2% and 14.5%, respectively. ACSDX has an annual expense ratio of 0.56%.

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 ACGIX 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.

ACGIX’s three-year and five-year annualized returns are 8.3% and 12.1%, respectively. ACGIX has an annual expense ratio of 0.81%.

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