The Dow Jones Industrial Average, the S&P 500 and the tech-heavy Nasdaq Composite have gained 11.2%, 18% and 20.7%, respectively, over the past year. However, rising inflation, poor economic data and additional tariff threats by President Donald Trump are weighing on investors’ confidence.

The Federal Reserve kept interest rates unchanged in its January meeting. The central bank raised concerns over the increase in inflation and the new government’s fiscal, trade and immigration policies. The U.S. Consumer Sentiment Index and the S&P Global's flash U.S. Composite PMI Output Index fell to a 15 and 17-month low, respectively. Apart from the previously announced changes, Trump additionally wants to increase tariffs on lumber and forest products. Investors expect Trump’s tariff policies to fan inflation, soften consumer demand and potentially start a global trade war.

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 Invescomutual funds like Invesco SteelPath MLP Select 40 Fund (MLPTX Quick QuoteMLPTX - Free Report) , Invesco Small Cap Value (VSMIX Quick QuoteVSMIX - Free Report) , Invesco Growth and Income (ACGMX Quick QuoteACGMX - Free Report) and Invesco Equity and Income Fund (ACETX Quick QuoteACETX - 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 Sept. 30, 2024.

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 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 Apr. 1, 2010. Most of the fund’s exposure was in companies like Energy Transfer (7.8%), MPLX (7.5%) and Western Midstream (6.6%) as of Aug. 31, 2024.

MLPTX’s has a three-year and five-year annualized return of 24.4% and 18.8%, respectively. MLPTX has an annual expense ratio of 0.87%.

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 (4%), Western Alliance Bankcorp (3.4%) and Lumentum Holdings (3.4%) as of Oct. 31, 2024.

VSMIX’s three-year and five-year annualized returns are 19% and 22.2%, respectively. VSMIX has an annual expense ratio of 0.81%.

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 ACGMX since March 1, 2003. Most of the fund’s exposure was in companies like Wells Fargo (3.3%), Bank of America (3.2%) and Exxon Mobil (2.3%) as of Aug. 31, 2024.

ACGMX’s three-year and five-year annualized returns are 9.3% and 12.5%, respectively. ACGMX has an annual expense ratio of 0.54%.

Invesco Equity and Income Fund invests most of its assets, along with borrowings, if any, in income-producing equity securities, and in derivatives and other instruments with similar economic characteristics. ACETX advisors also invest in foreign issues.

Sergio Marcheli has been the lead manager of ACETX since April 30, 2003, and most of the fund’s exposure is in companies like Wells Fargo (2.3%), Bank of America (2.2%) and Exxon Mobil (1.6%) as of Aug. 31, 2024.

ACETX’s three-year and five-year annualized returns are 6.2% and 9.6%, respectively. ACETX has an annual expense ratio of 0.52%.

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