Major U.S. indexes have experienced choppy movements recently. However, the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 have posted positive returns of 7.5%, 14.3%, and 11.2%, respectively, so far this year. Recent volatility was mainly driven by investors rotating out of high-valuation technology and AI stocks despite positive earnings news from major tech companies into traditionally safer sectors. Additionally, uncertainty over the Federal Reserve’s December interest rate cut expectations has led market participants to stay caution.

The end of the government shutdown last week removed major political risks after the U.S. Senate passed the funding bill. However, the labor market remains sluggish. The unemployment rate for September increased to 4.4%, the highest in four years, compared to 4.3% in August, while nonfarm payrolls rose by 119,000, following a decline of 4,000 in August.

The employment report for October was canceled due to the government shutdown. Attention now turns to the Fed's December meeting. The key question is whether policymakers will opt for a quarter of a percentage pointcut in benchmark interestrates to the range of 3.75-4.00% to counter labor-market softness and support growth, or maintain a restrictive stance to address inflation that remains above the 2% objective.

In such a volatile market situation, investors who wish to diversify in various asset classes but lack professional expertise in managing funds can opt for Invesco mutual funds like Invesco Summit Fund (ASMYX Quick QuoteASMYX - Free Report) , Invesco Small Cap Value (VSMIX Quick QuoteVSMIX - Free Report) , Invesco Steelpath Mlp Select 40 Fund (MLPTX Quick QuoteMLPTX - Free Report) and Invesco Discovery Fund (ODIYX Quick QuoteODIYX - Free Report) . 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 $1.8 trillion worth of assets under management as of April 30, 2025.

Invesco has offices in 20 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 an expense ratio of less than 1%. 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 Summit Fund invests most of its assets in common stocks of domestic and foreign (including emerging market) companies of all market capitalization that the fund's portfolio managers believe to have potential for earnings or revenue growth. ASMYX advisors does not invest business that are primary involved in alcohol, tobacco or gambling.

Ido Cohen has been the lead manager of ASMYX since July 22, 2013. Most of the fund’s exposure was in companies like NVIDIA (12.4%), Microsoft (8.7%) and Amazon.com (7.3%) as of July 31, 2025.

ASMYX has athree-year and five-year annualized return of 28% and 13.8%, respectively. ASMYX has an annual expense ratio of 0.73%.

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. VSMIX advisors choose to invest in companies that they consider undervalued.

Jonathan Mueller has been the lead manager of VSMIX since June 25, 2010. Most of the fund’s exposure was in companies like Coherent Corporation (3.2%), Lumentum Holdings (3.1%), and Globe Life(2.6%) as of July 31, 2025.

VSMIX’s three-year and five-year annualized returns are 20.2% and 26.1%, respectively. VSMIX has an annual expense ratio of 0.82%.

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. 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 April 1, 2010. Most of the fund’s exposure was in companies like Energy Transfer (7.8%), MPLX (7.8%) and Western Midstream Partners (7.7%) as of Aug. 31, 2025.

MLPTX has athree-year and five-year annualized return of 18.4% and 29.3%, respectively. MLPTX has an annual expense ratio of 0.84%.

Invesco Discovery Fund invests most of its assets in common stocks of domestic small-capitalization companies that, according to the fund’s managers, have favourable growth prospects. ODIYX advisors consider small-cap companies as those with a market capitalization within the range ofcompanies listed on the Russell 2000 Growth Index at the time of purchase.

Ronald J. Zibelli Jr. has been the lead manager of ODIYX since May 30, 2006, and most of the fund’s exposure was in companies like StepStone Group (2.2%), Encompass Health (2.1%) and Carpenter Technology(2.1%) as of Aug. 31, 2025.

ODIYX’s three-year and five-year annualized returns are 16.2% and 9.8%, respectively. ODIYX has an annual expense ratio of 0.77%.

Want key mutual fund info delivered straight to your inbox?

Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>