The U.S. market is witnessing heightened volatility due to policy uncertainty, valuation concerns, and mixed economic signals. Market participants are cautious over uncertainty surrounding new Federal Reserve leadership and shifting interest-rate expectations, which could impact the future course of monetary policy. Rising Treasury yields further pressured equities, while precious metals plunged amid a stronger dollar and expectations of a hawkish interest rate stance. However, investors showed confidence in continued AI spending and improving domestic demand, which supported all three benchmark indexes closing higher.

The Bureau of Labor Statistics reported a rise in the producer price index in December. PPI rose 0.5% compared to 0.2% in November. Core PPI increased 0.4%, indicating a steady rise in wholesale costs. The Institute of Supply Management (ISM) reported that the Manufacturing Purchasing Managers Index (PMI) saw a significant jump, climbing to 52.6 in January against 47.9 in December.

This swing indicates a healthy development phase as any reading above 50 indicates expansion and vice versa. The Services PMI remained in expansion territory at 53.8%, although it slightly missed the 54% street’s expectation. Oil prices also added to market volatility, falling sharply on signs of easing U.S.-Iran tensions. But renewed geopolitical risks in the Strait of Hormuz helped it rebound.

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 Small Cap Value (VSMIX Quick QuoteVSMIX - Free Report) , Invesco Value Opportunities (VVOAX Quick QuoteVVOAX - Free Report) , Invesco Steelpath Mlp Select 40 Fund (MLPFX Quick QuoteMLPFX - Free Report) and Invesco Discovery Fund (OPOCX Quick QuoteOPOCX - 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 $2.1 trillion worth of assets under management as of Dec. 31, 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 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 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 (4%), Western Alliance Bancorporation (2.7%) and MKS (2.5%) as of Oct. 31, 2025.

VSMIX’s three-year and five-year annualized returns are 22% and 21%, respectively. VSMIX has an annual expense ratio of 0.82%.

To see how this fund performed compared to its category and other 1, 2, and 3 Ranked Mutual Funds, please click here.

Invesco Value Opportunities fund invests most of its net assets in a portfolio of common, preferred stocks and convertible securities, preferably in mid-cap domestic companies. VVOAX advisors may also invest a small portion of its net assets in real estate investment trusts and foreign issuers located in emerging market countries.

Jonathan Mueller has been the lead manager of VVOAX since March 30, 2015. Most of the fund’s exposure was in companies like AppLovin (3.4%), Lumentum (3.3%) and Coherent (3.2%) as of July 31, 2025.

VVOAX’s three-year and five-year annualized returns are 21.7% and 19.9%, respectively. VVOAX has an annual expense ratio of 1%.

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 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.

MLPFX's three-year and five-year annualized return of 20.1% and 24.1%, respectively. MLPFX has an annual expense ratio of 1.09%.

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. OPOCX 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 OPOCX 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.

OPOCX’s three-year and five-year annualized returns are 18.7% and 5.8%, respectively. OPOCX has an annual expense ratio of 1.03%.

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